Cintas' Stock Prediction Shows a Potential Increase Following Earnings Report, with a Chance of 72%
Cintas Corporation (NASDAQ: CTAS) is set to announce its fiscal first quarter 2026 results on September 24, 2025. The company's anticipated earnings per share (EPS) represent a 7% growth compared to last year's figure of $1.12 per share, while the anticipated revenue shows an 8% increase compared to last year's revenue of $2.50 billion.
Analysts predict that Cintas will report earnings of $1.20 per share and revenue of $2.70 billion for the quarter. Historically, Cintas stock has shown a tendency to increase after earnings announcements, with a positive one-day return occurring 72% of the time.
The correlation between 1-day (1D) and 5-day (5D) post-earnings returns is analysed as a lower-risk approach. Over the last 3 years, the data provides correlation information between 1D and 5D post-earnings returns, while the 5-year history also offers insights into this correlation. However, the correlation itself is not specified in the provided data.
In the last five years, there have been 18 earnings data points recorded for Cintas, with 13 positive and 5 negative one-day returns. The average one-day gain for Cintas stock after positive earnings announcements is 3.7%. The median of the 13 positive returns is 3.7%, and the median of the 5 negative returns is -2.6%.
When looking at data from the last 3 years instead of 5, the percentage of positive one-day returns rises to 82%. This trend suggests a potential strategy for traders to position themselves "long" for the subsequent 5 days if the 1D post-earnings return is positive, as a higher correlation between 1D and 5D post-earnings returns indicates a potential strategy.
The Trefis RV strategy, which uses the correlation between short-term and medium-term returns following earnings to identify a potentially profitable trade, has outperformed its all-cap stocks benchmark, delivering strong returns for investors. However, the strategy does not effectively work if the correlation is weak.
It's important to note that the CEO (Vorstandsvorsitzender) of Cintas during the fiscal first quarter of 2026 is not explicitly mentioned in the provided search results. No relevant information about the current CEO of Cintas during that period is found in the sources.
Cintas' market capitalization is close to $80 billion, making it a significant player in the industry. The all-cap stocks benchmark includes the S&P 500, S&P mid-cap, and Russell 2000.
In conclusion, the upcoming Cintas earnings announcement presents an opportunity for traders to consider the correlation between 1D and 5D post-earnings returns and potentially implement a suitable trade based on the identified pair with the highest correlation. As always, it's advised to conduct thorough research and consider all factors before making investment decisions.
