Cintas Stock Is Down by a Third Due to Coronavirus -- Is It a Buy?
Corporate uniform and facility services company Cintas (NASDAQ: CTAS) is definitely a big loser from the aftermath of the COVID-19 pandemic. The virus is now the cause of a series of abrupt and severe actions taken by governments in order to curtail its spread. That's not great news for a business services company like Cintas, but is the market overreacting to events or not? Let's take a look at the investment case for the stock.
Frankly, no one knows exactly when this outbreak will ultimately be contained. Unfortunately, this fact is creating so much uncertainty in the marketplace that many companies are abandoning giving guidance altogether. Indeed, Cintas became the latest company to do so when it recently reported its fiscal third-quarter earnings. It's a disappointing outcome, as CFO Mike Hansen outlined that Cintas was actually planning to increase its full-year revenue and earnings guidance "based on our year-to-date results and fourth-quarter outlook" prior to the events of last week.
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Source Fool.com
