Jim Cramer on Cintas Corporation (CTAS): ‘I Love These Guys’ - InvestingChannel

Jim Cramer on Cintas Corporation (CTAS): ‘I Love These Guys’

We recently compiled a list of the Jim Cramer Says These 10 Stocks Can Do Well Regardless of Who Wins. In this article, we are going to take a look at where Cintas Corporation (NASDAQ:CTAS) stands against the other stocks in Jim Cramer’s current watchlist.

Jim Cramer, the host of Mad Money, recently shared his thoughts on stocks that could perform well regardless of who ends up running the White House. On Tuesday, Cramer observed that the day’s market performance gave the impression that every stock could go higher no matter who secures the presidency.

He pointed to significant gains across various sectors, including aerospace, housing, retail, and healthcare. Cramer noted that this broad-based rally resulted in strong performances on Tuesday, with the Dow climbing 427 points, the S&P rising by 1.23%, and the NASDAQ soaring by 1.43%. However, he tempered his optimism by adding that days like Tuesday might prove to be outliers in the coming weeks.

READ ALSO Jim Cramer’s Latest Game Plan: 15 Stocks to Watch and Jim Cramer is Talking About These 7 Stocks

Cramer took the opportunity to highlight ten stocks he believes will thrive and said:

“I want to highlight ten stocks that I believe will do well under either candidate, a who’s who of acclamation, companies that almost have to do well because of seismic trends and savvy managements. Companies that no White House would get hung up on, either because they’re beneath notice or they’re perceived as good corporate citizens by both sides. Stocks in industries that neither Trump nor Harris have ever targeted in the past.”

He also raised an important question for the viewers: “If you had the results of the election in hand, would you really know what to buy or sell?” According to Cramer, answering that question is far more complicated than it seems. He emphasized his list of stocks that can thrive regardless of the election outcome. These are companies that have no clear political adversaries in Washington, making them relatively safe bets. Cramer acknowledged, however, that many stocks that seem like obvious picks for one candidate or another often have hidden dynamics that don’t get enough attention.

“In the end, this presidential prognostication game is meaningless until we start hearing about cabinet appointments, those will tell us a lot. Then, we can figure out really who the winners and losers are. Right now, though, there are just too many political angles to every single stock story.”

Our Methodology

For this article, we compiled a list of 10 stocks that were discussed by Jim Cramer during the episode of Mad Money on November 5. We listed the stocks in ascending order of their hedge fund sentiment as of the second quarter, which was taken from Insider Monkey’s database of more than 900 hedge funds.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).

A corporate office with staff members wearing company branded uniforms.

Cintas Corporation (NASDAQ:CTAS)

Number of Hedge Fund Holders: 46

Cramer loves Cintas Corporation (NASDAQ:CTAS). During the episode, he emphasized its business model of serving small businesses. Here’s what Mad Money’s host had to say:

“… I love these guys. It’s the company that supplies more than 1 million businesses with uniforms, restroom supplies, fire safety equipment, some other stuff. You know why I love this one so much? Because it caters to small businesses and neither the Democrats nor Republicans can resist talking about how small businesses are the backbone of the American economy.

You hang around politicians enough, you can’t believe how many times they talk about this issue. Nobody ever lost an election in this country by pandering too hard to a small business. Of course, they approach it different[ly]. Republicans want to cut back regulations, they make it difficult to operate a small enterprise. The Democrats wanna give them small loans or big loans. Who’s right? That’s not my job. My job is to tell you how to profit from the bipartisan embrace of small business and you can do that by purchasing the stock that’s called Cintas.”

Cintas (NASDAQ:CTAS) provides corporate identity uniforms and a range of related services, including uniform rentals, restroom cleaning, first aid, fire protection products, and more, serving both small businesses and large corporations through a local distribution network. It has built a strong reputation for customer loyalty, driven in part by continuous product development across its uniform rental and various other business lines.

With a customer base exceeding 1 million corporate clients, the company benefits from a highly diversified revenue stream, as no single client accounts for more than 1% of its total revenue. This broad customer base helps mitigate the risks associated with client concentration, ensuring that the company’s success is not overly reliant on any single account. The company’s uniform rental and facility services segment makes up the majority of its revenue, contributing more than three-quarters of total sales.

In its first-quarter results for fiscal 2025, released on September 25, Cintas (NASDAQ:CTAS) uniform rental and facility services segment, in particular, saw a 5.9% increase in revenue, rising to $1.93 billion from $1.83 billion in the previous year. Additionally, its “other” business segment, which includes services outside of uniform rental, performed even better, showing a 10.1% increase to $567.7 million, up from $515.5 million the previous year.

Overall CTAS ranks 9th on Jim Cramer’s list of stocks that can do well regardless of who wins. While we acknowledge the potential of CTAS as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than CTAS but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

 

READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock

 

Disclosure: None. This article is originally published at Insider Monkey.

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