These two gain from a rising U.S. economy

Article Excerpt

Cintas and Tennant provide a variety of niche services and products, mainly to businesses. With the improved economy, clients should spend more on their offerings. We prefer Cintas for new buying, but like the outlook for both. CINTAS CORP. $209 (Nasdaq symbol CTAS; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 106.7 million; Market cap: $22.3 billion; Price-to-sales ratio: 3.5; Dividend yield: 0.8%; TSINetwork Rating: Average; www.cintas.com) designs, manufactures and sells uniforms to one million businesses, mainly in North America. It also offers related products and services such as office cleaning and first-aid kits. In March 2017, Cintas completed its acquisition of Minnesota-based G&K Services Inc. That firm supplies corporate uniforms and other services. G&K has 165 facilities across the U.S. and Canada. Cintas paid $2.2 billion, which included the firm’s debt. It now expects to reduce overlapping operations and cut between $130 million and $140 million from its annual costs by the end of the fourth year. As a result of the G&K purchase,…

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