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Zacks Investment Ideas feature highlights: The Progressive, Copart and Cintas

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For Immediate Release

Chicago, IL – October 18, 2023 – Today, Zacks Investment Ideas feature highlights The Progressive Corp. (PGR - Free Report) , Copart (CPRT - Free Report) and Cintas Corp. (CTAS - Free Report) .

These 3 Buy-Rated Stocks Are Long-Term Outperformers

Investors are always searching for stocks that deliver market-beating gains. Interestingly, many non-tech stocks have done precisely that over the last decade, exceeding the S&P 500’s impressive 220% gain and 12% annualized return.

Three stocks – The Progressive Corp., Copart and Cintas Corp. – have all outperformed the S&P 500 over the last decade, posting at least a 20% annualized return. This is illustrated below.

On top of market-beating performances, all three currently sport a favorable Zacks Rank, with analysts positively raising their expectations. Let’s take a closer look at each.

Copart

Copart, a Zacks Rank #1 (Strong Buy), provides online auctions and a wide range of remarketing services to process and sell salvage and clean title vehicles. The revision trends have been particularly notable for its current and next fiscal years.

The company’s better-than-expected quarterly releases have helped power shares throughout 2023, with Copart exceeding both Zacks Consensus EPS and Revenue estimates in three consecutive releases. The company posted $997 million in sales in its latest release, growing 13% from the year-ago period thanks to improved service revenues.

Copart’s top line growth has remained on a healthy trajectory.

The Progressive Corp.

Progressive, a current Zacks Rank #2 (Buy), is an American insurance company, recently becoming the largest motor insurance carrier in the United States in late 2022. Analysts have moved their expectations higher across the board.

Value-focused investors may not find PGR shares as attractive, currently trading at a 5.2X trailing 12-month price-to-book ratio, above the respective Zacks Insurance industry average of 1.8X. The price-to-book ratio measures how much investors will pay for each dollar of a company's net assets.

PGR shares saw buying pressure following its latest quarterly release, with Net Premiums Earned climbing 20% year-over-year to $14.9 billion and total Policies in Force growing 10% from the year-ago period. Regarding our expectations, PGR beat the Zacks Consensus EPS Estimate by 20% and posted a modest revenue surprise.

The company’s earnings are expected to be up 21% on 18% higher revenues in its current year, with estimates for FY24 suggesting an additional 58% earnings growth paired with a 12% sales bump. The stock sports a Style Score of “B” for Growth.

Cintas Corp.

Cintas’ products and services include uniforms, floor care, restroom supplies, first aid, and safety products, taking care of any business needs. The stock is currently a Zacks Rank #2 (Buy), with expectations modestly moving higher across the board.

Cintas is a great example of a company committed to increasingly rewarding shareholders, recently boosting its quarterly payout by 17% in late July. In fact, the company is a member of the elite Dividend Aristocrat group, further reflecting its shareholder-friendly nature.

Additionally, the company has been the definition of consistency within its quarterly results, exceeding the Zacks Consensus EPS Estimate in each quarter dating back to 2017. It’s worth noting that Cintas posted a record-high operating margin of 21.4% compared to the year-ago figure of 20.3% in its latest release.

Bottom Line

Investors are always trying to beat the market. After all, we’re here to get the most bang for our buck.

And when it comes to delivering market-beating gains, all three stocks above have outperformed the S&P 500 over the last decade, all delivering at least 20% annualized returns during the period.

In addition, all three have seen their near-term earnings outlooks shift positively, reflecting optimism among analysts and providing fuel to continue their climbs.

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.


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Cintas Corporation (CTAS) - free report >>

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Copart, Inc. (CPRT) - free report >>

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