Jim Cramer on Cintas: "This is a Great Long-Term Hold"

Cintas Corporation (NASDAQ:CTAS) is one of the stocks Jim Cramer shared insights on. A caller asked Cramer for his view on the stock, noting it is down roughly 10% this month despite strong multi-year growth, high earnings, and a high price-to-earnings ratio. He remarked:

“People feel that there’s a slowdown going on. People feel that there’s going to, that, there’s one of those moments where there’s not a lot of hiring. That’s when you want to buy Cintas. Not when it’s flying high, but when it’s under the radar. I think you buy some here, then you wait for the quarter. If the quarter’s disappointing, you buy more. Why? Because this is a great long-term hold. That’s why.”

Cintas Corporation (NASDAQ:CTAS) provides uniforms, facility services, and related business solutions, along with first aid, safety, and fire protection products. Cramer discussed the stock in a June episode. He commented:

“What else made the list yesterday? Cintas is not necessarily considered a subscription business. Hey, but their standard contract is five years for you to bring your company uniforms, first aid products, along with fire protection and safety gear. Sure, the stock typically goes down if we, you think we’re headed for a slowdown, but Cintas can’t join the new high list without robust blue-collar hiring. The fact that it’s up here is a terrific sign, actually, for the broader economy.”

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