Jim Cramer’s Game Plan: 9 Stocks in Focus

5. Cintas Corporation (NASDAQ:CTAS)

Number of Hedge Fund Holders: 56

Commenting on small business-oriented companies like Cintas Corporation (NASDAQ:CTAS), Cramer stated:

“We got a pair of small business-oriented companies that will report Wednesday, Cintas and Paychex. Cintas, French uniforms, provides many other services to small, medium-sized businesses. Last time it reported, the market didn’t like it and the stock got drilled. I’m worried about small business formation right now, and therefore, I have to worry about a company like Cintas that sells uniforms and then takes care of them.”

Cintas (NASDAQ:CTAS) offers corporate uniforms and related business services, as well as products and services for first aid, safety, and fire protection. Aoris Investment Management stated the following regarding Cintas Corporation (NASDAQ:CTAS) in its Q4 2024 investor letter:

“Firstly, I think we exercised good valuation discipline in our sales of Costco and Cintas Corporation (NASDAQ:CTAS). The share prices of these two companies had increased by more than 60% and 40% respectively in the year prior to our sale. It can be difficult as investors to remain objective and not ‘fall in love’ with an investment when it is performing well. A higher share price doesn’t make a business more valuable!

We sold both Costco and Cintas simply for reasons of valuation. These are exceptional businesses that we’d love to own again if valuation permits. Their sales allowed us to recycle portfolio capital into more attractively valued businesses.”