Employment, Industry Pricing, And Costing Challenges Hit Cintas Corp (CTAS) in Q3

TimesSquare Capital Management, an equity investment management company, released its “U.S. Focus Growth Strategy” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the third quarter, all the major asset classes posted positive returns except fixed income assets outside the US. The strategy returned 4.00% (gross) and 3.78% (net) compared to a 2.78% return for the Russell Midcap Growth Index. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, TimesSquare Capital U.S. Focus Growth Strategy highlighted stocks such as Cintas Corporation (NASDAQ:CTAS). Headquartered in Cincinnati, Ohio, Cintas Corporation (NASDAQ:CTAS) provides corporate identity uniforms and related business services. The one-month return of Cintas Corporation (NASDAQ:CTAS) was 2.05%, and its shares lost 11.46% of their value over the last 52 weeks. On December 12, 2025, Cintas Corporation (NASDAQ:CTAS) stock closed at $187.53 per share, with a market capitalization of $75.565 billion.

TimesSquare Capital U.S. Focus Growth Strategy stated the following regarding Cintas Corporation (NASDAQ:CTAS) in its third quarter 2025 investor letter:

"Many of our Industrial positions provide necessary business-to-business operational services, highly technical components, equipment enabling automation & efficiency improvements, or essential infrastructure services. Cintas Corporation (NASDAQ:CTAS) offers corporate identity uniforms and facilities services. Cintas reported better fiscal first quarter results against subdued expectations. The stock pulled back -8% due to concerns around employment, industry pricing, and cost pressures."

Cintas Corporation (NASDAQ:CTAS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 61 hedge fund portfolios held Cintas Corporation (NASDAQ:CTAS) at the end of the third quarter, which was 57 in the previous quarter. In the first quarter of fiscal 2026, Cintas Corporation’s (NASDAQ:CTAS) total revenue grew 8.7% to $2.72 billion. While we acknowledge the potential of Cintas Corporation (NASDAQ:CTAS) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Cintas Corporation (NASDAQ:CTAS) and shared Renaissance Large Cap Growth Strategy's views on the company. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

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