Core Viewpoint - A number of quality large-cap stocks have entered oversold territory, presenting new investment opportunities despite the market being near all-time highs. Notable mentions include Cintas Corp, Fastenal Co, and Gen Digital Inc [1] Cintas Corp (CTAS) - Cintas shares have declined nearly 20% since August, primarily due to valuation concerns rather than deteriorating business fundamentals [2][4] - The P/E ratio peaked at around 55 over the summer but has since adjusted to approximately 40, which is more reasonable for the company's consistent performance [3] - The latest quarterly report met expectations for earnings and exceeded revenue forecasts, with management raising full-year guidance, yet the stock continued to decline, indicating oversold conditions with an RSI of 19 [4][5] Fastenal Co (FAST) - Fastenal's stock has dropped over 15% since reaching all-time highs in August, following an earnings report that did not meet investor expectations [8][9] - Despite the decline, analysts remain optimistic, with Robert Baird maintaining an Outperform rating and a price target of $49, suggesting nearly 20% upside from its current price [10][11] - Fastenal's long-term fundamentals are strong, characterized by a broad customer base, disciplined cost control, and a 26-year history of dividend growth, positioning it well for recovery [11] Gen Digital Inc (GEN) - Gen Digital has also seen a nearly 20% decline since August, remaining within a multi-year trading range without breaking new highs since 2017 [13] - The company's August earnings report surpassed analyst expectations for both revenue and earnings, and its market leadership position remains attractive [14] - With an RSI of 27, Gen Digital is considered oversold, making its risk/reward profile appealing, with potential for recovery towards the low $30s if market sentiment stabilizes [15]

Core Insights - Technology stocks have experienced significant growth over the past decade due to their transformative impact on consumer behavior and daily life [1] - Simpler, non-tech businesses, particularly in the Consumer Staples sector, have also shown strong performance and resilience against market volatility [3][7] Group 1: Company Performance - Cintas (CTAS) has achieved an impressive +810% gain over the last decade, outperforming Meta Platforms (META), which gained +630% during the same period [4] - Cintas has delivered a +24.6% annualized return, demonstrating less volatility compared to tech stocks, especially during the market downturn in 2022 [4] - Waste Management (WM) has also shown strong performance, significantly outpacing the S&P 500's 320% gain over the last decade, while maintaining stability during market fluctuations [5] Group 2: Investment Perspective - The consistent nature of companies like Cintas and Waste Management provides a protective shield against market volatility, making them attractive investment options [3][7] - Investors do not need to rely solely on tech stocks for substantial returns, as these simpler companies have proven to deliver dependable growth by excelling in their core operations [9]

Company Overview - Cintas Corporation is a leading provider of corporate identity uniforms and business services, generating over $10.56 billion in trailing twelve-month revenue [5] - The company operates a recurring revenue model through rental and service contracts, serving a diverse client base from small businesses to large corporations across the U.S., Canada, and Latin America [4][5] - As of October 6, 2025, Cintas has a market capitalization of $80.20 billion and a net income of $1.85 billion [3] Recent Developments - Sanders Morris Harris LLC established a new stake in Cintas Corporation during the third quarter, purchasing approximately 49,220 shares valued at $10.10 million, representing 1.3% of its 13F reportable assets under management [1][2] - As of October 6, 2025, shares of Cintas were priced at $199.04, down 2.66% for the year and underperforming the S&P 500 by 20.21 percentage points [2] Competitive Advantage - Cintas is the largest provider of uniforms and facility services in the U.S., with revenue reaching $9.6 billion last year, benefiting from economies of scale that allow it to offer competitive prices [8] - The company's durable advantage positions it for steady profit growth over the long term [8] Portfolio Management - Sanders Morris Harris has a diversified portfolio, with Cintas being the 11th largest position among over 300 stocks, indicating its significance despite not being in the top five [7] - The fund's total reportable positions increased to 309 as of September 30, 2025, reflecting a strong performance in recent years [1][6]

Revenue Growth - Total revenue increased by 8.7% to $2,718.1 million for the three months ended August 31, 2025, compared to $2,501.6 million for the same period in 2024[66] - Organic revenue growth rate was 7.8%, with acquisitions contributing an additional 0.9%[67] - Revenue from the Uniform Rental and Facility Services segment rose by 8.1% to $2,091.1 million, with an organic growth rate of 7.3%[68] - Other revenue, including First Aid and Safety Services, increased by 10.4% to $627.1 million, with an organic growth rate of 9.6%[69] - Net sales to unrelated parties increased to $2,582.5 million for the three months ended August 31, 2025, up from $2,372.6 million in 2024, representing an increase of approximately 8.8%[99] Income and Profitability - Operating income was $617.9 million, representing 22.7% of revenue, an increase from 22.4% in the prior year[73] - Net income for the three months ended August 31, 2025, was $491.1 million, an increase of 8.7% compared to the same period in 2024[76] - Operating income rose to $576.7 million for the three months ended August 31, 2025, compared to $513.1 million in the same period of 2024, reflecting a growth of about 12.4%[99] Cash Flow and Capital Expenditures - Cash flows from operating activities were $414.5 million, down from $460.4 million in the previous year, primarily due to unfavorable changes in working capital[87] - Capital expenditures for the three months ended August 31, 2025, were $102.0 million, compared to $92.9 million in 2024[88] Tax and Debt Management - The effective tax rate increased to 17.6% for the three months ended August 31, 2025, from 15.8% in 2024[75] - Total debt due after one year was $2,425.8 million as of August 31, 2025, with senior notes having interest rates ranging from 3.70% to 6.15%[93] - Cintas maintained compliance with all debt covenants for all periods presented, ensuring liquidity and operational stability[94] Financing Activities - Net cash used in financing activities decreased to $424.0 million for the three months ended August 31, 2025, from $591.3 million in the same period of 2024, primarily due to reduced share buyback activity[89] - Cintas repurchased a total of 5.4 million shares at an average price of $185.01 per share, totaling $1.0 billion, since the inception of the July 26, 2022 share buyback program through September 2025[90] - The Board declared dividends of $0.39 per share for the three months ended August 31, 2025, totaling $157.8 million, compared to $0.3375 per share and $138.2 million for the same period in 2024[91] Liquidity and Credit Ratings - Cintas has access to $2.0 billion of debt capacity from its revolving credit facility, ensuring sufficient liquidity for at least the next 12 months[86] - As of August 31, 2025, Cintas had a commercial paper rating of A-2 from Standard & Poor's and a long-term debt rating of A[95] - The company anticipates continued access to commercial paper and long-term debt markets to fund cash requirements, contingent on maintaining favorable credit ratings[95] Foreign Currency Exposure - Cintas is exposed to foreign currency risk primarily from transactions in currencies other than its functional currency[107] - The main foreign currency exposure for Cintas is the Canadian dollar[107]

Core Points - Minnesota state park received $2,500 in Cintas products and services [1] Group 1 - The award is part of Cintas' initiative to support local parks [1]

Core Insights - Cintas Corp. is set to report its Q2 2026 earnings on December 18, with analysts expecting an EPS of $1.20, an increase from $1.09 in the same period last year, and quarterly revenue projected at $2.74 billion, up from $2.56 billion year-over-year [1][3]. Financial Performance - In Q1 2026, Cintas reported an EPS of $1.20, meeting expectations, while revenues reached $2.71 billion, exceeding the consensus estimate of $2.69 billion [3][4]. - The stock price of Cintas has fluctuated between $180.80 and $229.24 over the past 52 weeks [2]. Dividend Information - Cintas has a dividend yield of 0.89%, having paid $1.80 per share in dividends over the last 12 months [2][5]. - To generate an income of $100 per month from Cintas dividends, an investment of approximately $134,831 is required, based on the current dividend yield [5][6].

Group 1 - Cintas' stock price action indicates it is a buy, with a recent price of $202.26 and a price target of $221.00, reflecting a potential upside of 11.46% [1][11] - The company has shown significant growth, with a revenue increase of 8.8% to $2.72 billion in Q1, driven by both acquisitions and organic growth [5][8] - Cintas is expected to maintain a 7% revenue compound annual growth rate (CAGR) through the middle of the next decade, with margin expansion anticipated each year [8] Group 2 - The company has a strong capital return strategy, with a reliable dividend yield of 0.89% and a history of annual growth at a high teen CAGR [9][10] - Cintas has repurchased nearly 35% of its shares since the buyback program began, which is expected to continue over the next 10 to 15 years [10] - Analysts have a Hold rating on Cintas, with a bullish sentiment reflected in increasing price targets and institutional buying activity, which exceeds five-to-one on a trailing 12-month basis [11][12] Group 3 - Economic conditions are expected to improve, with the Federal Open Market Committee (FOMC) projected to reduce rates by 75 basis points, which may positively impact Cintas' business [2][3] - The company is likely to benefit from increased domestic economic activity driven by anticipated policy changes, leading to higher client counts and employee numbers [3] - Despite a tepid guidance compared to analysts' forecasts, the long-term outlook remains positive, with expectations of sustained growth and margin strength [8]

Core Viewpoint - The article discusses the author's investment philosophy, which incorporates various strategies including fundamental, technical, and momentum investing, emphasizing the importance of a diversified approach to capital management [1]. Group 1: Investment Strategies - The author utilizes fundamental investing, which focuses on the intrinsic value of companies, as well as technical investing that analyzes historical price charts [1]. - Momentum investing is also mentioned, highlighting the significance of share price reactions following earnings announcements [1]. - The combination of these strategies aims to enhance the author's investment process and decision-making [1]. Group 2: Purpose of Writing - The article serves as a platform for tracking the performance of the author's investment ideas [1]. - It also aims to connect with like-minded investors who share similar investment interests [1].

Core Viewpoint - The article discusses the author's investment philosophy, which incorporates various strategies including fundamental, technical, and momentum investing, emphasizing the importance of a diversified approach to capital management [1]. Group 1: Investment Philosophy - The author believes in the merits of different investment approaches, such as fundamental investing, technical investing, and momentum investing [1]. - The investment process has been refined over the years by leveraging the positive aspects of each approach [1]. Group 2: Purpose of Writing - The article serves as a platform for tracking the performance of the author's investment ideas and connecting with like-minded investors [1].

Core Insights - Cintas Corporation reported stronger-than-expected first-quarter sales and expanding margins, with earnings per share of $1.20 and quarterly sales of $2.718 billion, reflecting an 8.7% year-over-year increase [1] - The revenue growth was positively impacted by 0.9% due to acquisitions [1] Financial Guidance - The company raised its fiscal 2026 GAAP EPS guidance to a range of $4.74–$4.86 from $4.71–$4.85, slightly above the consensus estimate of $4.86 [2] - Cintas also increased its fiscal 2026 sales outlook to $11.06 billion–$11.18 billion from $11.00 billion–$11.15 billion, compared to the previous estimate of $11.113 billion [2] Stock Performance - Following the earnings announcement, Cintas shares gained 1.7%, reaching $203.34 [2] Analyst Ratings and Price Targets - JP Morgan analyst Andrew Steinerman maintained an Overweight rating but lowered the price target from $246 to $230 [5] - Wells Fargo analyst Jason Haas maintained an Equal-Weight rating and cut the price target from $221 to $218 [5] - RBC Capital analyst Ashish Sabadra maintained a Sector Perform rating and lowered the price target from $240 to $206 [5]