Most of the hype in the dividend stock investing community focuses on stocks that already offer lofty dividend payments. However, where these high-yield dividend stocks pay out more to investors upfront, most provide minimal dividend growth over the long haul.
Atmos Energy, Brown & Brown and Cintas are included in this Analyst Blog.
I recommend a hold rating for Cintas Corporation due to its high valuation, despite healthy fundamentals and potential for low-teens earnings growth. CTAS reported strong Q2 performance with 7.8% y/y revenue growth, margin expansion, and raised FY25 revenue and EPS guidance, yet share price declined. A more attractive entry point for CTAS would be around $165, offering a potential 1-year upside of ~16% based on my current model.
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Cintas (CTAS) is well positioned to outperform the market, as it exhibits above-average growth in financials.
CTAS' second-quarter fiscal 2025 organic revenues increase 7.1% year over year on solid segmental sales.
If you have watched Cintas' NASDAQ: CTAS share price rise over the last decade and perhaps were waiting for a post-stock-split plunge to buy in or buy more, your hopes have been fulfilled. The stock price began to correct in early December, which turned into a full-blown capital “C” Correction with the FQ2 2025 release.
Cintas Corporation has experienced a near 20% correction, presenting a buying opportunity despite its premium valuation, as it continues to grow and pay dividends. The company reported strong fiscal Q2 results for earnings, though revenue was in-line, which may have been disappointing. Operating income and net income showed significant growth, with operating income rising 18.4% and net income up 19.7% year-over-year.
Cintas (CTAS) shares tumbled nearly 10% intraday Thursday as the provider of uniforms and other business supplies reported a decline in direct sales of its uniforms and warned about pricing.
Cintas Corporation (NASDAQ:CTAS ) Q2 2025 Results Conference Call December 19, 2024 10:00 AM ET Company Participants Jared Mattingley - Vice President, Treasurer, and Investor Relations Todd Schneider - President and Chief Executive Officer Mike Hansen - Executive Vice President and Chief Financial Officer Conference Call Participants Tim Mulrooney - William Blair Andrew Steinerman - JPMorgan Securities Jasper Bibb - Truist Securities Manav Patnaik - Barclays Josh Chan - UBS George Tong - Goldman Sachs Shlomo Rosenbaum - Stifel David Paige - RBC Andrew Wittmann - R.W. Baird Toni Kaplan - Morgan Stanley Faiza Alwy - Deutsche Bank Harold Antor - Jefferies Scott Schneeberger - Oppenheimer Jason Haas - Wells Fargo Operator Good day, everyone, and welcome to the Cintas Corporation Announces Fiscal 2025 Second Quarter Results Conference Call.
Shares of professional uniform company Cintas (CTAS -9.59%) plunged 9.3% on Thursday as of 12 p.m. EDT.