Jim Cramer on Cintas: “That’s a Terrific Barometer of the Mood of Small Business”

Cintas Corporation (NASDAQ:CTAS) is one of the stocks on Jim Cramer’s game plan this week. Cramer highlighted the importance of the stock for small businesses, as he said:

“Next up, I like Thursday… Cintas, the uniform and safety equipment supplier, reports too. That’s a terrific barometer of the mood of small business.”

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Cintas Corporation (NASDAQ:CTAS) provides uniform rental, facility services, and workplace supplies, including garments, mats, restroom products, and cleaning services for businesses. Moreover, the company offers first aid, safety, and fire protection products and services. Renaissance Large Cap Growth Strategy stated the following regarding Cintas Corporation (NASDAQ:CTAS) in its third quarter 2025 investor letter:

“Conversely, we sold our long-term position in Cintas Corporation (NASDAQ:CTAS) following a deterioration in fundamental factors. Our original investment thesis has come to fruition, with Cintas growing both their Fire and First Aid segments into material contributors to revenue growth and operating margin expansion. However, more recently, revenue growth has decelerated, and margin expansion has peaked. Consequently, despite its history as a high-quality compounder since we purchased the stock in April 2019, we believe that the risk-reward is no longer advantageous, with valuation multiples near all-time highs along with a deteriorating employment environment. Until the employment environment reaccelerates, we believe that estimates for revenue growth may be too high as the company potentially faces weaker demand in the near to-intermediate term.”

While we acknowledge the risk and potential of CTAS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than CTAS and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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