“Smile when you say it!” That’s how I start every conversation about any company that’s based in the Cincinnati area. Proctor & Gamble (PG), Fifth Third Bancorp (FITB), even Workhorse (WKHS).
Cintas (CTAS) gave its investors something to smile about on Thursday, as the company delivered a stellar earnings report. I could go through the numbers, but you can get them anywhere. This is the only place you’ll get my insight. Let’s get into that.
Cintas is one of the hardest working companies in the market, literally. They supply everything from outfits to safety products and training, even the carpets that greet you in your favorite restaurant.
Everything for every industry.
Long earnings story short, the company is killing it, and they’re looking forward to an even better 2024.
Why it Matters: This is easy… Historically, Cintas’ performance and outlook have been a great “canary in the coalmine” for the economy. The company gets stronger as the economy gets better.
Cintas’ business represents a “boots on the ground” reality check on the economy. I’ll take that all day long over all the slow-moving government data on the economy.
Bottom Line: This stock is ready to rock, again. Cintas’ 2024 outlook fits nicely with the larger picture theme of an economy that is slowly pivoting back into growth mode after standing on the recessionary ledge for the last two years.
Right now, CTAS shares are preparing for a break above the $560 price on their way to my target of $600 in 2024.
Looking for other “less expensive” stocks that may be in a similar situation? Look at shares of what I call “the other Sysco.” SYY shares appear ready to break through $75 on their way to my target of $90.
About the Author
Chris Johnson (“CJ”), a seasoned equity and options analyst with nearly 30 years of experience, is celebrated for his quantitative expertise in quantifying investors’ sentiment to navigate Wall Street with a deeply rooted technical and contrarian trading style.