Is Cintas Stock a Smart Reopening Buy?
Uniform rental and facility services company Cintas (NASDAQ: CTAS) has been a stellar performer over the years, with the stock rising nearly 300% in the last half-decade. The reason comes down to its success in convincing more companies to outsource their uniform provisioning to it, and also convincing them to buy an array of everyday facility servicing products (mops, floor mats, fire protection services, etc.) from it. The company has been a great long-term story, and as the economy reopens, Cintas is surely positioned to benefit. However, the key question potential new investors need to answer is whether the stock is a good value now.
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The case for Cintas being a reopening investment is simple: As workers return to their jobs in factories, healthcare facilities, foodservice outlets, hospitality industries, etc., revenues from its core uniform rental business will rebound. In addition, the COVID-19 pandemic has created a heightened interest in cleanliness and healthiness in the workplace. That should benefit Cintas' business of providing and routinely cleaning working uniforms, as well as its facility services segment.
Source Fool.com
