Short interest for Cintas gives investors a sense of the degree to which investors are betting on the decline of Cintas's stock. Short interest data is updated every two weeks.

Cintas Stock (NASDAQ:CTAS), Short Interest Report

Cintas

Cintas is positioned as a one-stop shop that rents/sells uniforms and ancillary products and services, such as mops, first aid kits, and fire inspections. In its core uniform and facility services unit (a majority of sales), Cintas provides uniform rental programs for items including office attire, custom-tailored apparel, flame-resistant clothing, lab coats, and other profession-specific clothing. Facilities products generally include the rental and sale of entrance mats, mops, shop towels, hand sanitizers, and restroom supplies. Cintas' remaining businesses include first aid and safety services, fire protection services, and uniform direct sales.

Earnings

News

Price Target

Intraday Update

Markets

Analyst Ratings

Trading Ideas

CTAS

Cintas Corporation (NASDAQ: CTAS) reported better-than-expected third-quarter financial results and raised FY24 guidance.

Cintas Analysts Increase Their Forecasts After Upbeat Earnings

Small Cap

Pre-Market Outlook

DRCT

The CNN Money Fear and Greed index showed some improvement in overall market sentiment on Wednesday, but it remained in the &#34;Greed&#34; zone.

U.S. stocks closed higher on Wednesday, with the S&amp;P 500 settling at a fresh record level during the session. The index is up around 10% in the first quarter and is on course to record its best first-quarter surge since 2019.

Investor Optimism Improves; S&amp;P 500 Settles At New Record

Penny Stocks

Eurozone

Commodities

Global

GMDA

LIXT

MRDB

PAYS

U.S. stocks traded mostly higher toward the end of trading, with the Dow Jones index gaining over 300 points on Wednesday.

The Dow traded up 0.78% to 39,589.55 while the NASDAQ fell 0.02% to 16,312.74. The S&amp;P 500 also rose, gaining, 0.36% to 5,222.18.

Gold Moves Higher; Velo3D Shares Plummet

Cintas Corp

Cintas's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CTAS#NYSE">CTAS</a>) short percent of float has fallen 5.24% since its last report. The company recently reported that it has 1.37 million shares sold short, which is 1.81% of all regular shares that are available for trading. Based on its trading volume, it would take traders 3.71 days to cover their short positions on average.
<h3>Why Short Interest Matters</h3>
Short interest is the number of shares that have been sold short but have not yet been covered or closed out. <a href="https://www.benzinga.com/money/how-to-short-a-stock/">Short selling</a> is when a trader sells shares of a company they do not own, with the hope that the price will fall. Traders make money from short selling if the price of the stock falls and they lose if it rises.
Short interest is important to track because it can act as an indicator of market sentiment towards a particular stock. An increase in short interest can signal that investors have become more bearish, while a decrease in short interest can signal they have become more bullish.
See Also: <a href="https://www.benzinga.com/short-interest">List of the most shorted stocks</a>
<h3>Cintas Short Interest Graph (3 Months)</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1715263223_0.png" alt="short_fig" />
As you can see from the chart above the percentage of shares that are sold short for Cintas has declined since its last report. This does not mean that the stock is going to rise in the near-term but traders should be aware that less shares are being shorted.
<h3>Comparing Cintas's Short Interest Against Its Peers</h3>
Peer comparison is a popular technique amongst analysts and investors for gauging how well a company is performing. A company's peer is another company that has similar characteristics to it, such as industry, size, age, and financial structure. You can find a company's peer group by reading its 10-K, proxy filing, or by doing your own similarity analysis.
According to <a href="https://pro.benzinga.com/">Benzinga Pro</a>, Cintas's peer group average for short interest as a percentage of float is 3.87%, which means the company has less short interest than most of its peers.
Did you know that increasing short interest can actually be bullish for a stock? <a href="https://www.benzinga.com/money/how-to-make-money-on-a-short-squeeze/">This post by Benzinga Money explains how you can profit from it.</a>
This article was generated by Benzinga's automated content engine and was reviewed by an editor.

Short Sellers

Short Ideas

(CTAS) - Analyzing Cintas's Short Interest

Stock split to increase accessibility to all investors, including Cintas employee-partners.
Cintas Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CTAS#NASDAQ">CTAS</a>), a leading provider of business-to-business services, today announced that its Board of Directors approved a four-for-one split of its common stock. Shareholders of record, as of September 4, 2024, will receive three additional shares for each share held, which will be distributed after market close on September 11, 2024. Cintas' shares are expected to begin trading on a post-split basis at the market open on Thursday, September 12, 2024. Prior to this announcement, Cintas' most recent stock split was in 2000.
"At Cintas, we call our employees ‘partners' in recognition of the value that each individual contributes to our success as a company. Our founder, Dick Farmer, also believed the importance of each employee-partner having ownership in the company to share collectively in that success," said Todd Schneider, Cintas' President and Chief Executive Officer. "Cintas shares are trading near record highs as a result of our steadfast focus on serving our customers. We believe that the time is right to split the stock and increase its accessibility to our employee-partners and investors so that they can continue to share in the future growth of Cintas."
The company expects that the stock split will increase the number of shares of Cintas's outstanding common stock from approximately 101 million shares to approximately 404 million shares.

Stock Split

Cintas Board of Directors Approves 4-For-1 Stock Split, Expected To Begin Trading On A Post-split Basis At The Market Open On Thursday, September 12, 2024

Cintas (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CTAS#NASDAQ">CTAS</a>) has outperformed the market over the past 15 years by 12.05% on an annualized basis producing an average annual return of 24.22%. Currently, Cintas has a market capitalization of $67.50 billion. 
Buying $1000 In CTAS: If an investor had bought $1000 of CTAS stock 15 years ago, it would be worth $25,941.17 today based on a price of $665.25 for CTAS at the time of writing.
<h3>Cintas's Performance Over Last 15 Years</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1714158029_0.png" alt="comp_fig" />
Finally -- what's the point of all this? The key insight to take from this article is to note how much of a difference compounded returns can make in your cash growth over a period of time.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Here's How Much $1000 Invested In Cintas 15 Years Ago Would Be Worth Today

Cintas (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CTAS#NASDAQ">CTAS</a>) has outperformed the market over the past 10 years by 17.24% on an annualized basis producing an average annual return of 27.96%. Currently, Cintas has a market capitalization of $67.95 billion. 
Buying $1000 In CTAS: If an investor had bought $1000 of CTAS stock 10 years ago, it would be worth $11,895.63 today based on a price of $669.73 for CTAS at the time of writing.
<h3>Cintas's Performance Over Last 10 Years</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1712853022_0.png" alt="comp_fig" />
Finally -- what's the point of all this? The key insight to take from this article is to note how much of a difference compounded returns can make in your cash growth over a period of time.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

$1000 Invested In This Stock 10 Years Ago Would Be Worth $12,000 Today

Goldman Sachs analyst George Tong maintains Cintas (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CTAS#NASDAQ">CTAS</a>) from Buy to Buy.

Goldman Sachs Maintains Buy on Cintasto Buy

Oppenheimer analyst Scott Schneeberger maintains Cintas (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CTAS#NASDAQ">CTAS</a>) from Perform to Perform.

Oppenheimer Maintains Perform on Cintasto Perform

Deutsche Bank analyst Faiza Alwy maintains Cintas (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CTAS#NASDAQ">CTAS</a>) with a Hold and raises the price target from $629 to $726.

Deutsche Bank Maintains Hold on Cintas, Raises Price Target to $726

Cintas Corporation (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/ctas#NASDAQ">CTAS</a>) reported better-than-expected third-quarter financial results and <a href="https://www.benzinga.com/news/earnings/24/03/37963359/why-corporate-apparel-company-cintas-shares-are-gaining-today">raised FY24 guidance</a>.
Cintas posted GAAP earnings of $3.84 per share, beating market estimates of $3.59 per share. The company&rsquo;s quarterly sales came in at $2.406 billion, versus expectations of $2.386 billion, according to data from <a href="https://pro.benzinga.com/dashboard">Benzinga Pro.</a>
Todd M. Schneider, Cintas&rsquo; President, and Chief Executive Officer, stated, &ldquo;Each of our operating segments continue to execute at a high level, which led to robust revenue growth of 9.9%, record high gross margin of 49.4%, record high operating margin of 21.6% and diluted EPS growth of 22.3%.&rdquo;
Cintas increased FY24 annual revenue expectations from $9.48 billion-$9.56 billion to $9.57 billion-$9.60 billion (estimate: $9.56 billion). The firm raised EPS outlook from $14.35-$14.65 to $14.80-$15.00 (estimate: $14.60).
Cintas shares rose 0.1% to trade at $686.63 on Thursday.
These analysts made changes to their price targets on Cintas following earnings announcement.
<ul>
<li>Baird raised the price target on Cintas from $660 to $750. Baird analyst Andrew Wittmann maintained an Outperform rating.</li>
<li>B of A Securities increased the price target on Cintas from $700 to $790. B of A Securities analyst Heather Balsky maintained a Buy rating.</li>
<li>UBS boosted the price target on Cintas from $680 to $790. UBS analyst Joshua Chan maintained a Buy rating.</li>
<li>Truist Securities raised the price target on Cintas from $660 to $775. Truist Securities analyst Jasper Bibb maintained a Buy rating.</li>
<li>RBC Capital boosted the price target on Cintas from $675 to $725. RBC Capital analyst Ashish Sabadra maintained an Outperform rating.</li>
</ul>
&nbsp;
Now Read This: <a href="https://www.benzinga.com/trading-ideas/long-ideas/24/03/37975916/jim-cramer-likes-crown-castle-but-cant-recommend-archer-aviation-it-has-no-earnings-powe"> Jim Cramer Likes Crown Castle, But Can&#39;t Recommend Archer Aviation: It Has &#39;No Earnings Power&#39;</a>

Goldman Sachs analyst George Tong maintains Cintas (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CTAS#NASDAQ">CTAS</a>) with a Buy and raises the price target from $673 to $765.

Goldman Sachs Maintains Buy on Cintas, Raises Price Target to $765

RBC Capital analyst Ashish Sabadra maintains Cintas (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CTAS#NASDAQ">CTAS</a>) with a Outperform and raises the price target from $675 to $725.

RBC Capital Maintains Outperform on Cintas, Raises Price Target to $725

Truist Securities analyst Jasper Bibb maintains Cintas (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CTAS#NASDAQ">CTAS</a>) with a Buy and raises the price target from $660 to $775.

Truist Securities Maintains Buy on Cintas, Raises Price Target to $775

UBS analyst Joshua Chan maintains Cintas (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CTAS#NASDAQ">CTAS</a>) with a Buy and raises the price target from $680 to $790.

UBS Maintains Buy on Cintas, Raises Price Target to $790

Throughout the last three months, 5 analysts have evaluated Cintas (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CTAS#NASDAQ">CTAS</a>), offering a diverse set of opinions from bullish to bearish.
The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.
<table>
<thead>
<tr>
<th></th>
<th style="text-align: right;">Bullish</th>
<th style="text-align: right;">Somewhat Bullish</th>
<th style="text-align: right;">Indifferent</th>
<th style="text-align: right;">Somewhat Bearish</th>
<th style="text-align: right;">Bearish</th>
</tr>
</thead>
<tbody>
<tr>
<td>Total Ratings</td>
<td style="text-align: right;">2</td>
<td style="text-align: right;">3</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>Last 30D</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>1M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">2</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>2M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>3M Ago</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
</tbody>
</table>
The 12-month price targets assessed by analysts reveal further insights, featuring an average target of $715.0, a high estimate of $790.00, and a low estimate of $660.00. Observing a 8.99% increase, the current average has risen from the previous average price target of $656.00. 
<img src="https://www.benzinga.com/files/images/story/2024/1711634483_0.png" alt="price target chart" />
<h2>Deciphering Analyst Ratings: An In-Depth Analysis</h2>
The standing of Cintas among financial experts is revealed through an in-depth exploration of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
<table>
<thead>
<tr>
<th>Analyst</th>
<th>Analyst Firm</th>
<th>Action Taken</th>
<th>Rating</th>
<th>Current Price Target</th>
<th>Prior Price Target</th>
</tr>
</thead>
<tbody>
<tr>
<td>Heather Balsky</td>
<td>B of A Securities</td>
<td>Raises</td>
<td>Buy</td>
<td>$790.00</td>
<td>$700.00</td>
</tr>
<tr>
<td>Andrew Wittmann</td>
<td>Baird</td>
<td>Raises</td>
<td>Outperform</td>
<td>$750.00</td>
<td>$660.00</td>
</tr>
<tr>
<td>Ashish Sabadra</td>
<td>RBC Capital</td>
<td>Raises</td>
<td>Outperform</td>
<td>$675.00</td>
<td>$645.00</td>
</tr>
<tr>
<td>Manav Patnaik</td>
<td>Barclays</td>
<td>Raises</td>
<td>Overweight</td>
<td>$700.00</td>
<td>$630.00</td>
</tr>
<tr>
<td>Jasper Bibb</td>
<td>Truist Securities</td>
<td>Raises</td>
<td>Buy</td>
<td>$660.00</td>
<td>$645.00</td>
</tr>
</tbody>
</table>
<h3>Key Insights:</h3>
<ul>
<li>Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Cintas. This information provides a snapshot of how analysts perceive the current state of the company.</li>
<li>Rating: Analysts assign qualitative assessments to stocks, ranging from 'Outperform' to 'Underperform'. These ratings convey the analysts' expectations for the relative performance of Cintas compared to the broader market.</li>
<li>Price Targets: Analysts predict movements in price targets, offering estimates for Cintas's future value. Examining the current and prior targets offers insights into analysts' evolving expectations.</li>
</ul>
Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of Cintas's market position. Stay informed and make data-driven decisions with the assistance of our Ratings Table.
<a href="https://www.benzinga.com/quote/CTAS/analyst-ratings?utm_source=Benzinga Insights">Stay up to date on Cintas analyst ratings.</a>
<h2>All You Need to Know About Cintas</h2>
Cintas is positioned as a one-stop shop that rents/sells uniforms and ancillary products and services, such as mops, first aid kits, and fire inspections. In its core uniform and facility services unit (a majority of sales), Cintas provides uniform rental programs for items including office attire, custom-tailored apparel, flame-resistant clothing, lab coats, and other profession-specific clothing. Facilities products generally include the rental and sale of entrance mats, mops, shop towels, hand sanitizers, and restroom supplies. Cintas' remaining businesses include first aid and safety services, fire protection services, and uniform direct sales.
<h3>Financial Insights: Cintas</h3>
Market Capitalization Highlights: Above the industry average, the company's market capitalization signifies a significant scale, indicating strong confidence and market prominence.
Revenue Growth: Over the 3 months period, Cintas showcased positive performance, achieving a revenue growth rate of 9.3% as of 30 November, 2023. This reflects a substantial increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Industrials sector.
Net Margin: Cintas's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 15.7% net margin, the company effectively manages costs and achieves strong profitability.
Return on Equity (ROE): Cintas's ROE stands out, surpassing industry averages. With an impressive ROE of 9.25%, the company demonstrates effective use of equity capital and strong financial performance.
Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 4.26%, the company showcases effective utilization of assets.
Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.72.
<h2>The Significance of Analyst Ratings Explained</h2>
Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.
Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.
Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Forecasting The Future: 5 Analyst Projections For Cintas

B of A Securities analyst Heather Balsky maintains Cintas (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CTAS#NASDAQ">CTAS</a>) with a Buy and raises the price target from $700 to $790.

B of A Securities Maintains Buy on Cintas, Raises Price Target to $790

Baird analyst Andrew Wittmann maintains Cintas (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CTAS#NASDAQ">CTAS</a>) with a Outperform and raises the price target from $660 to $750.

Baird Maintains Outperform on Cintas, Raises Price Target to $750

The CNN Money Fear and Greed index showed some improvement in overall market sentiment on Wednesday, but it remained in the &quot;Greed&quot; zone.
U.S. stocks closed higher on Wednesday, with the S&amp;P 500 settling at a fresh record level during the session. The index is up around 10% in the first quarter and is on course to record its best first-quarter surge since 2019.
Shares of Cintas Corporation (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/ctas#NASDAQ">CTAS</a>) surged 8% on Wednesday after the company reported better-than-expected third-quarter financial results and raised FY24 guidance. Shares of Direct Digital Holdings, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/drct#NASDAQ">DRCT</a>) dipped more than 39% after the company reported worse-than-expected fourth-quarter financial results.
On the economic data front, U.S. <a href="https://www.benzinga.com/money/mortgage-lenders-no-tax-returns/">mortgage</a> applications declined by 0.7% on the week ending March 22, 2024. Crude oil inventories in the U.S. increased by 3.165 million barrels in the week ended March 22, compared to market estimates of a 1.275 million decline, the Energy Information Administration said.
All sectors on the S&amp;P 500 closed on a positive note, with utilities, real estate and industrials stocks recording the biggest gains on Wednesday.
The Dow Jones closed higher by around 478 points to 39,760.08 on Wednesday. The S&amp;P 500 rose 0.86% at 5,248.49, while the Nasdaq Composite rose 0.51% at 16,399.52 during Wednesday&rsquo;s session.
Investors are awaiting earnings results from Oxford Industries, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/oxm#NYSE">OXM</a>), MSC Industrial Direct Co., Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/msm#NYSE">MSM</a>) and Walgreens Boots Alliance, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/wba#NASDAQ">WBA</a>) today.
At a current reading of 70, the index remained in the &quot;Greed&quot; zone on Wednesday, versus a prior reading of 68.
What is CNN Business Fear &amp; Greed Index?
The Fear &amp; Greed Index is a measure of the current market sentiment. It is based on the premise that higher fear exerts pressure on stock prices, while higher greed has the opposite effect. The index is calculated based on seven equal-weighted indicators. The index ranges from 0 to 100, where 0 represents maximum fear and 100 signals maximum greediness.
&nbsp;
Read Next: <a href="https://www.benzinga.com/trading-ideas/long-ideas/24/03/37951427/jim-cramer-visa-is-too-close-to-all-time-high-chart-industries-is-absolutely-terrific"> Jim Cramer: Visa Is &#39;Too Close To All-Time High,&#39; Chart Industries Is &#39;Absolutely Terrific&#39;</a>

Investor Optimism Improves; S&P 500 Settles At New Record

U.S. stocks traded mostly higher toward the end of trading, with the Dow Jones index gaining over 300 points on Wednesday.
The Dow traded up 0.78% to 39,589.55 while the NASDAQ fell 0.02% to 16,312.74. The S&amp;P 500 also rose, gaining, 0.36% to 5,222.18.
Check This Out: <a href="https://www.benzinga.com/news/24/03/37932398/top-3-energy-stocks-that-may-keep-you-up-at-night-in-q1"> Top 3 Energy Stocks That May Keep You Up At Night In Q1 </a>
&nbsp;
<h3>Leading and Lagging Sectors</h3>
&nbsp;
Utilities shares jumped by 2% on Wednesday.
In trading on Wednesday, communication services shares fell by 0.5%.
&nbsp;
<h3>Top Headline</h3>
&nbsp;
Cintas Corporation (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/ctas#NASDAQ">CTAS</a>) reported better-than-expected third-quarter financial results and raised FY24 guidance.
Cintas posted GAAP earnings of $3.84 per share, beating market estimates of $3.59 per share. The company&rsquo;s quarterly sales came in at $2.406 billion, versus expectations of $2.386 billion, according to data from Benzinga Pro.
Cintas increased FY24 annual revenue expectations from $9.48 billion-$9.56 billion to $9.57 billion-$9.60 billion (estimate: $9.56 billion). The firm raised EPS outlook from $14.35-$14.65 to $14.80-$15.00 (estimate: $14.60).
&nbsp;
<h3>Equities Trading UP</h3>
&nbsp;
Lixte Biotechnology Holdings, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/lixt#NASDAQ">LIXT</a>) shares shot up 44% to $3.2571 after the company announced the publication of pre-clinical data on its lead clinical compound, LB-100.
Shares of MariaDB plc (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/mrdb#NYSE">MRDB</a>) got a boost, surging 91% to $0.4311 after Progress Software announced that it is possibly considering an offer for the company.
PaySign, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/pays#NASDAQ">PAYS</a>) shares were also up, gaining 19% to $4.01 after the company announced better-than-expected fourth-quarter results.
&nbsp;
<h3>Equities Trading DOWN</h3>
&nbsp;
Gamida Cell Ltd. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/gmda#NASDAQ">GMDA</a>) shares dropped 83% to $0.0591 after the company reported fourth-quarter results and disclosed the commencement of a restructuring process.
Shares of Direct Digital Holdings, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/drct#NASDAQ">DRCT</a>) were down 38% to $16.36 after the company reported worse-than-expected fourth-quarter financial results.
Velo3D, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/vld#NYSE">VLD</a>) was down, falling 42% to $0.3339 after the company reported worse-than-expected fourth-quarter financial results.
Also Check This Out:<a href="https://www.benzinga.com/news/24/03/37956326/netflix-to-rally-over-15-here-are-10-top-analyst-forecasts-for-wednesday"> Netflix To Rally Over 15%? Here Are 10 Top Analyst Forecasts For Wednesday </a>
&nbsp;
<h3>Commodities</h3>
&nbsp;
In commodity news, oil traded down 0.5% to $81.19 while gold traded up 0.6% at $2,211.80.
Silver traded up 0.3% to $24.705 on Wednesday, while copper fell 0.2% to $4.0000.
&nbsp;
<h3>Euro zone</h3>
&nbsp;
European shares were higher today. The eurozone&rsquo;s STOXX 600 rose 0.13%, London&rsquo;s FTSE 100 rose 0.01% while Spain&rsquo;s IBEX 35 Index rose 1.09% The German DAX rose 0.50% French CAC 40 rose 0.25% while Italy&rsquo;s FTSE MIB Index rose 0.21%.
The economic sentiment indicator in the eurozone climbed to a three-month high level of 96.3 in March, while services confidence indicator rose to 6.3 from 6 a month ago. The consumer confidence indicator in the eurozone increased by 0.6 points to a reading of -14.9 in March.
Spain posted a current account surplus of &euro;5,127 million in January, higher than the &euro;2,340 million surplus recorded in year-ago period, while consumer price inflation rate accelerated to 3.2% year-over-year in March. The construction output in Italy surged by 14.8% year-over-year in January, while consumer confidence indicator in France climbed to 91 in March.
&nbsp;
<h3>Asia Pacific Markets</h3>
&nbsp;
Asian markets closed mixed on Wednesday, with Japan&rsquo;s Nikkei 225 gaining 0.90%, Hong Kong&rsquo;s Hang Seng Index falling 1.36%, China&rsquo;s Shanghai Composite Index dipping 1.26% and India&rsquo;s S&amp;P BSE Sensex gaining 0.73%.
Profits earned by Chinese industrial firms jumped by 10.2% year-over-year to CNY 914.06 billion during the first two months of the year.
&nbsp;
<h3>Economics</h3>
&nbsp;
U.S. mortgage applications declined by 0.7% on the week ending March 22, 2024.
Crude oil inventories in the U.S. increased by 3.165 million barrels in the week ended March 22, compared to market estimates of a 1.275 million decline, the Energy Information Administration said.
Now Read This: <a href="https://www.benzinga.com/news/24/03/37956325/accenture-autozone-and-2-other-stocks-insiders-are-selling"> Accenture, AutoZone And 2 Other Stocks Insiders Are Selling </a>

Wall Street witnessed a mixed session on Wednesday morning trading, with tech giants seeing slight declines while blue chips and <a href="https://www.benzinga.com/money/best-small-cap-stocks">small caps recording gains.</a>
The S&amp;P 500 index climbed back above the 5,200-point mark, up by 0.2%, while the Dow Jones saw a 0.5% increase, and the Nasdaq experienced a marginal 0.1% dip.
A basket of the Magnificent Seven, as tracked by the Roundhill Magnificent Seven ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MAGS#NYSE">MAGS</a>), dropped by 0.8%.
Small caps rallied, with the iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) rising by 1.2%, marking the strongest performance of the past week.
On the macro front, there was a slight decrease in 30-year mortgage rates from 6.98% to 6.93%, as reported by the Mortgage Bankers Association of America. However, new mortgage applications experienced a weekly decline of 0.7%.
Treasury yields across the curve dropped by 3 basis points, providing support for gold, which rose by 0.5% to $2,190 per ounce. The iShares 20+ Year Treasury Bond ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TLT#NASDAQ">TLT</a>) inched 0.6% higher. 
Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) slipped 1.4% below the 69,000 mark, reaching an intraday low of 68,380. 
<h3 class="wp-block-heading">Wednesday&#8217;s Performance In Major US Indices, ETFs</h3>
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Major Indices</td>
<td>Price</td>
<td>1-day %chg</td>
</tr>
<tr>
<td>Russell 2000</td>
<td>2,091.84</td>
<td>1.3%</td>
</tr>
<tr>
<td>Dow Jones</td>
<td>39,497.24</td>
<td>0.5%</td>
</tr>
<tr>
<td>S&amp;P 500</td>
<td>5,223.58</td>
<td>0.4%</td>
</tr>
<tr>
<td>Nasdaq 100</td>
<td>18,214.24</td>
<td>0.0%</td>
</tr>
</tbody>
</table>
</figure>
The&nbsp;SPDR S&amp;P 500 ETF Trust&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) was 0.3% higher to $520.78, the&nbsp;SPDR Dow Jones Industrial Average (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>) fell 0.5% to $393.92 and the tech-heavy&nbsp;Invesco QQQ Trust&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) held steady at $443.33, according to&nbsp;<a href="https://pro.benzinga.com/dashboard">Benzinga Pro data</a>.&nbsp;
Sector-wise, the Utilities Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLU#NYSE">XLU</a>) and the Real Estate Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLRE#NYSE">XLRE</a>) were the top performers for the day, up 2% and 1.8%, while the Technology Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLK#NYSE">XLK</a>) was the laggard, showing a flat reading.
<h3 class="wp-block-heading">Wednesday&#8217;s Stock Movers</h3>
<ul>
<li>nCino, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NCNO#NASDAQ">NCNO</a>) rallied nearly 19% after stronger-than-expected quarterly results. </li>
<li>Other companies reacting to earnings reports were GameStop Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GME#NYSE">GME</a>), down 15%, Progress Software Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PRGS#NASDAQ">PRGS</a>), down 1.2%, Cintas Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CTAS#NASDAQ">CTAS</a>), up 9%, Carnival Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CCL#NASDAQ">CCL</a>), up 2.6%, Lands End Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LE#NASDAQ">LE</a>), up 12%, Sonida Senior Living Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SNDA#NYSE">SNDA</a>). </li>
<li>Celsius Holdings Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CELH#NASDAQ">CELH</a>) saw a nearly 8% drop after the energy-drink company amended its distribution agreement with PepsiCo Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PEP#NASDAQ">PEP</a>), adding an incentive program that boosts Pepsi&#8217;s margins on the sales of Celsius&#8217; beverages.</li>
<li>SL Green Realty Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SLG#NYSE">SLG</a>) rallied 5.3% after Barclays upgraded the stock from &#8216;Underweight&#8217; to &#8216;Equalweight,&#8217; raising the price target from $38 to $45. </li>
<li>Companies set to report after market close are Jefferies Financial Group Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JEFF#NYSE">JEFF</a>), RH Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RH#NYSE">RH</a>), H.B. Fuller Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FUL#NYSE">FUL</a>), Braze Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BRZE#NASDAQ">BRZE</a>), Chemours Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CC#NYSE">CC</a>) and Sprinklr Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CXM#NYSE">CXM</a>). </li>
</ul>
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Small Caps Rally, Magnificent 7 Ease, Gold Eyes $2,200, Bitcoin Falls Below $69,000: What's Driving Markets Wednesday?

Shares of LuxUrban Hotels Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/luxh#NASDAQ">LUXH</a>) fell sharply during Wednesday&rsquo;s session after the company issued preliminary fourth-quarter <a href="https://www.benzinga.com/quote/LUXH/earnings">revenue outlook below estimates</a>.
LuxUrban said it expects preliminary revenue of $28.2 million for the fourth quarter, versus market estimates of $34.199 million, according to data from <a href="https://pro.benzinga.com/dashboard">Benzinga Pro</a>.
LuxUrban Hotels shares dipped 27.4% to $1.5523 on Wednesday.
Here are some other stocks moving in today&#39;s mid-day session.
<h3>Gainers</h3>
<ul>
<li>MariaDB plc (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/mrdb#NYSE">MRDB</a>) climbed 70.4% to $0.3850 after Progress Software announced that it is possibly considering an offer for the company.</li>
<li>Lixte Biotechnology Holdings, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/lixt#NASDAQ">LIXT</a>) shares jumped 68.6% to $3.8099 after the company announced the publication of pre-clinical data on its lead clinical compound, LB-100.</li>
<li>Nutriband Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/ntrb#NASDAQ">NTRB</a>) gained 33.2% to $3.9950 after the company provided a clinical and regulatory path overview for its AVERSA Fentanyl patch.</li>
<li>Verb Technology Company, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/verb#NASDAQ">VERB</a>) surged 30.5% to $0.3656 after the company announced that its MARKET.live entered into a formal partnership with TikTok to become a service provider for TikTok Shop and will receive a TikTok Shop Partner designation.</li>
<li>PaySign, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/pays#NASDAQ">PAYS</a>) gained 28.2% to $4.3299 after the company announced better-than-expected fourth-quarter results.</li>
<li>Destiny Tech100 Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/dxyz#NASDAQ">DXYZ</a>) rose 26.6% to $11.39 after gaining 9% on Tuesday.</li>
<li>PAVmed Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/pavm#NASDAQ">PAVM</a>) gained 19.7% to $2.4798 after the company issued business update and fourth quarter financial results.</li>
<li>Noah Holdings Limited (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/noah#NYSE">NOAH</a>) rose 17.5% to $11.89 after the company reported fourth quarter financial results.</li>
<li>NuScale Power Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/smr#NYSE">SMR</a>) rose 17.5% to $4.89.</li>
<li>The ONE Group Hospitality, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/stks#NASDAQ">STKS</a>) shares rose 17.2% to $4.70 after the company announced that it will acquire Safflower Holdings.</li>
<li>Trump Media &amp; Technology Group Corp. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/djt#NASDAQ">DJT</a>) gained 16.7% to $67.68 after jumping 16% on Tuesday.</li>
<li>Ouster, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/oust#NYSE">OUST</a>) gained 16.7% to $5.82 following strong quarterly sales.</li>
<li>Ontrak, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/otrk#NASDAQ">OTRK</a>) rose 16.3% to $0.4931.</li>
<li>Cazoo Group Ltd (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/czoo#NYSE">CZOO</a>) rose 15.5% to $7.22.</li>
<li>A2Z Smart Technologies Corp. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/az#NASDAQ">AZ</a>) surged 15.3% to $0.5301.</li>
<li>nCino, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/ncno#NASDAQ">NCNO</a>) gained 15.2% to $34.78 as the company reported better-than-expected fourth-quarter results and issued FY25 adjusted earnings guidance above estimates..</li>
<li>Lexicon Pharmaceuticals, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/lxrx#NASDAQ">LXRX</a>) climbed 11.6% to $2.22.</li>
<li>Nuvation Bio Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/nuvb#NASDAQ">NUVB</a>) shares rose 10% to $3.1688. Nuvation Bio shares gained 28% on Tuesday after BTIG upgraded the stock from Neutral to Buy.</li>
<li>Cintas Corporation (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/ctas#NASDAQ">CTAS</a>) gained 9.7% to $694.62 after the company reported better-than-expected third-quarter financial results and raised FY24 guidance.</li>
<li>Semtech Corporation (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/smtc#NASDAQ">SMTC</a>) rose 7.8% to $27.12.</li>
<li>Marvell Technology, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/mrvl#NASDAQ">MRVL</a>) gained 5.6% to $72.04.</li>
</ul>
<h3>Losers</h3>
<ul>
<li>Gamida Cell Ltd. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/gmda#NASDAQ">GMDA</a>) shares fell 83.2% to $0.0575 after the company reported fourth-quarter results and disclosed the commencement of a restructuring process.</li>
<li>Direct Digital Holdings, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/drct#NASDAQ">DRCT</a>) dipped 44.8% to $14.60 after the company reported worse-than-expected fourth-quarter financial results.</li>
<li>Velo3D, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/vld#NYSE">VLD</a>) fell 41.2% to $0.3401 after the company reported worse-than-expected fourth-quarter financial results.</li>
<li>Ryvyl Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/rvyl#NASDAQ">RVYL</a>) dipped 37.8% to $2.46 following fourth-quarter results.</li>
<li>Forge Global Holdings, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/frge#NYSE">FRGE</a>) fell 26.1% to $1.96 after the company reported worse-than-expected fourth-quarter financial results.</li>
<li>Organigram Holdings Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/ogi#NASDAQ">OGI</a>) dipped 22% to $2.08 as the company announced pricing of overnight marketed public offering.</li>
<li>Akili, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/akli#NASDAQ">AKLI</a>) shares tumbled 21.2% to $0.3002. The company received a notice of allowance for U.S. Patent Application 17/890,478 titled Cognitive Platform For Deriving Effort Metric For Optimizing Cognitive Treatment (Using Data Computed With Artificial Neural Network Or Deep Learning Techniques).</li>
<li>Mesoblast Limited (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/meso#NASDAQ">MESO</a>) shares fell 19.4% to $3.17. Mesoblast shares jumped over 78% on Tuesday after the FDA informed the company that the available clinical data from its Phase 3 study MSB-GVHD001 appears sufficient to support submission of the proposed Biologics License Application for remestemcel-L for treatment of pediatric patients with steroid-refractory acute graft versus host disease.</li>
<li>X Financial (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/xyf#NYSE">XYF</a>) fell 19.2% to $3.7250 following fourth-quarter results.</li>
<li>JOANN Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/joan#NASDAQ">JOAN</a>) fell 18.2% to $0.09 after dipping over 6% on Tuesday. The Nasdaq recently determined that the company is no longer suitable for listing and its stock will be suspended on March 28.</li>
<li>Bit Origin Ltd (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/btog#NASDAQ">BTOG</a>) fell 18.1% to $4.31.</li>
<li>C3is Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/ciss#NASDAQ">CISS</a>) fell 17.4% to $0.0397. C3is recently reported a year-over-year increase in fourth-quarter financial results.</li>
<li>AEye, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/lidr#NASDAQ">LIDR</a>) declined 14.6% to $1.34 after the company reported worse-than-expected fourth-quarter revenue results.</li>
<li>GameStop Corp. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/gme#NYSE">GME</a>) shares fell 14.4% to $13.27 as the company posted weaker-than-expected results for its fourth quarter on Tuesday.</li>
<li>Sonida Senior Living, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/snda#NYSE">SNDA</a>) fell 14% to $27.78 following fourth-quarter results.</li>
<li>Nocera, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/ncra#NASDAQ">NCRA</a>) dipped 13.5% to $1.15.</li>
<li>Bowman Consulting Group Ltd. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/bwmn#NASDAQ">BWMN</a>) fell 11.4% to $34.99 after the company priced a $45 million public offering of common stock at $34 per share.</li>
<li>Reddit, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/rddt#NYSE">RDDT</a>) fell 11.3% to $ 57.75.</li>
<li>Krispy Kreme, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/dnut#NASDAQ">DNUT</a>) fell 10.4% to $15.54.</li>
<li>Abits Group Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/abts#NASDAQ">ABTS</a>) fell 10.3% to $0.7001 after gaining 7% on Tuesday.</li>
<li>Astera Labs, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/alab#NASDAQ">ALAB</a>) fell 8.8% to $75.99 amid post-IPO volatility.</li>
<li>XPeng Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/xpev#NYSE">XPEV</a>) declined 8.4% to $7.82.</li>
<li>Liquidia Corporation (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/lqda#NASDAQ">LQDA</a>) fell 7% to $14.81.</li>
<li>NIO Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/nio#NYSE">NIO</a>) fell 5.9% to $4.4959 after the company cut its first-quarter delivery outlook.</li>
</ul>
&nbsp;
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Movers

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DNUT

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FRGE

JOAN

LIDR

LQDA

LUXH

LXRX

MESO

MRVL

NCRA

NOAH

NTRB

NUVB

OTRK

OUST

PAVM

RDDT

RVYL

SMTC

STKS

VERB

XPEV

Why LuxUrban Hotels Shares Are Trading Lower By Around 27%? Here Are Other Stocks Moving In Wednesday's Mid-Day Session

Cintas Corporation&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CTAS#NASDAQ">CTAS</a>) shares are&nbsp;<a target="_blank" href="https://www.benzinga.com/premarket" rel="noreferrer noopener">trading higher on Wednesday.</a>
The company reported third-quarter earnings per share of $3.84,&nbsp;<a target="_blank" href="https://www.benzinga.com/pressreleases/24/03/b37956432/cintas-corporation-announces-fiscal-2024-third-quarter-results" rel="noreferrer noopener">beating the analyst consensus of $3.58.</a>
Quarterly revenue of $2.406 billion&nbsp;<a target="_blank" href="https://www.benzinga.com/calendars/earnings" rel="noreferrer noopener">beat the street view of $2.386 billion</a>. Revenues rose 9.9% year over year.
Gross profit for the third quarter was $1.19 billion, marking an increase of 14.9% year over year. Gross margin expanded to 49.4% compared to 47.2% in last year&#8217;s third quarter.
Operating income for the third quarter of fiscal 2024 increased 16.6% to $520.8 million.
Check This Out:&nbsp;<a target="_blank" href="https://www.benzinga.com/markets/equities/24/03/37954177/why-is-nio-stock-trading-lower-today" rel="noreferrer noopener">Why Is NIO Stock Trading Lower Today?</a>
Todd M. Schneider, Cintas&#8217; President, and Chief Executive Officer, stated, &#8220;Each of our operating segments continue to execute at a high level, which led to robust revenue growth of 9.9%, record high gross margin of 49.4%, record high operating margin of 21.6% and diluted EPS growth of 22.3%.&#8221;
On March 15, 2024, Cintas paid an aggregate quarterly cash dividend of $137.6 million to shareholders, an increase of 17.1% from the amount paid last March.
Outlook:&nbsp;Cintas increased FY24 annual revenue expectations from $9.48 billion-$9.56 billion to $9.57 billion-<a target="_blank" href="https://www.benzinga.com/calendars/guidance" rel="noreferrer noopener">$9.60 billion (estimate: $9.56 billion).</a>
The firm raised EPS outlook from $14.35-$14.65 to $14.80-$15.00 (estimate: $14.60).
Price Action: CTAS shares are trading higher by 8.77% to $688.98 on the last check Wednesday.
Photo via Wikimedia Commons

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<a href="https://investorplace.com">InvestorPlace - Stock Market News, Stock Advice &amp; Trading Tips</a>
Investing in <a href="https://investorplace.com/stock-types/growth-stocks/">growth stocks</a> can deliver outsized gains, but investors have to stick with these stocks during volatile stretches. These stocks are more vulnerable to price swings due to macroeconomic factors. These growth stocks to buy now are also held under the microscope each time they report earnings.



Investors pay more attention to these types of stocks because of the potential payoff. Some growth stocks have become giants within their respective industries while others have the potential to become giants.



It&rsquo;s clear why investors buy growth stocks. They want to outperform the stock market. These seven growth stocks to buy now can give you a chance at achieving that objective.&nbsp;



<h2>Amazon (AMZN)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2022/03/amzn_amazon_2_1600-300x169.png" alt="Closeup of the Amazon logo at Amazon campus in Palo Alto, California. The Palo Alto location hosts A9 Search, Amazon Web Services, and Amazon Game Studios teams. AMZN stock"><div>Source: Tada Images / Shutterstock.com</div></div>Amazon&nbsp;(NASDAQ:<a href="https://investorplace.com/stock-quotes/amzn-stock-quote/">AMZN</a>) offers the world&rsquo;s most recognizable online marketplace that&nbsp;<a href="https://www.mobiloud.com/blog/amazon-statistics#:~:text=The%20total%20number%20of%20products,brands%20such%20as%20Amazon%20Basics.">lists millions of products on its platform</a>. The company processes more than 4,000 product sales every minute.&nbsp;



The e-commerce segment is Amazon&rsquo;s main revenue driver, but the company is also seeing plenty of success with its leading cloud computing division. Amazon Web Services has the&nbsp;<a href="https://www.statista.com/chart/18819/worldwide-market-share-of-leading-cloud-infrastructure-service-providers/">lion&rsquo;s share of the cloud computing industry</a>. It has roughly one-third of the total market share and has a big lead over the competition. It&rsquo;s mostly a duopoly between Amazon and&nbsp;Microsoft&nbsp;(NASDAQ:<a href="https://investorplace.com/stock-quotes/msft-stock-quote/">MSFT</a>) with&nbsp;Alphabet&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>, NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>) as an honorable mention.



The tech giant is also expanding its advertising, video streaming, and grocery segments. Amazon recently got accused of&nbsp;<a href="https://www.supermarketnews.com/news/amazon-aims-steal-trader-joe-s-trade-secrets-former-employees-allege">attempting to steal Trader Joe&rsquo;s trade secrets</a>. This isn&rsquo;t the best look for Amazon, but investors should take note that the company is looking to expand its grocery store footprint through Whole Foods and Amazon Fresh. Advertising and streaming are the bigger segments to monitor, but Amazon seems to be putting more effort into its grocery segment. This makes it one of those growth stocks to buy now.



<h2>Sofi (SOFI)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2023/10/sofi1600-1-300x169.png" alt="SoFi Technologies, Inc logo with stock market chart background. is an American online personal finance company and online bank."><div>Source: Poetra.RH / Shutterstock.com</div></div>Traditional <a href="https://investorplace.com/industries/financial/bank/">bank stocks</a> aren&rsquo;t considered growth stocks. Those corporations have matured and offer dividend payouts to keep shareholders invested. However,&nbsp;SoFi&nbsp;(NASDAQ:<a href="https://investorplace.com/stock-quotes/sofi-stock-quote/">SOFI</a>) isn&rsquo;t your traditional bank.



The fintech company operates entirely online, so you can&rsquo;t drive to a local branch. The company also has many of the&nbsp;<a href="https://www.sofi.com/">financial products</a>&nbsp;you would expect from a big institution. Consumers can get personal loans, mortgages, credit cards, checking and savings accounts, investment accounts, and other products. SoFi has also made great strides in getting mainstream appeal through SoFi Stadium and by becoming the official bank of the NBA.



SoFi reported its first profitable quarter in&nbsp;<a href="https://s27.q4cdn.com/749715820/files/doc_financials/2023/q4/SoFi-Q4-2023-Earnings-Release.pdf">Q4 2023</a>. Net income came to $47.9 million while revenue was $615.4 million. Revenue grew by 35% year-over-year and the company ended up with a 7.9% net profit margin. This helps make it one of those growth stocks to buy now.



SoFi&rsquo;s P/E ratio can drop quickly and present value to patient investors. However, you will have to contend with a stock that has dropped by 31% over the past five years and is also down by 25% year-to-date. Rising profits can catch a lot of investors by surprise and potentially result in a surge.



<h2>Elf Beauty (ELF)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2020/04/cosmetics-beauty-products-300x169.jpg" alt="a collection of various cosmetic products on a black table"><div>Source: Africa Studio/Shutterstock.com</div></div>Elf Beauty&nbsp;(NYSE:<a href="https://investorplace.com/stock-quotes/elf-stock-quote/">ELF</a>) is gaining market share in the beauty industry and has generated significant returns for investors. The stock is up by 83% over the past year and has surged by 1,200% over the past five years.



The stock trades at a 73 P/E ratio and has impressive financial growth. Revenue increased by 85% year-over-year in&nbsp;<a href="https://investor.elfbeauty.com/news-and-events/press-releases/landing-news/2024/02-06-2024-210530133">Q3 FY24</a>&nbsp;while net income jumped by 41% year-over-year to reach $26.9 million. The company has double-digit net profit margins.



ELF investors got spooked after&nbsp;Ulta Beauty&nbsp;(NASDAQ:<a href="https://investorplace.com/stock-quotes/ulta-stock-quote/">ULTA</a>) warned investors of a&nbsp;<a href="https://www.reuters.com/business/retail-consumer/ulta-beauty-tanks-ceo-warns-sluggish-first-quarter-demand-drags-peers-2024-04-03/">slower quarter</a>. However, that may not be bad news for Elf Beauty. The company can be using this opportunity to gain market share while another competitor isn&rsquo;t doing as well. It&rsquo;s possible that Elf Beauty is still performing well despite Ulta Beauty&rsquo;s warning. This is a case of Schr&ouml;dinger&rsquo;s cat leading up to Elf Beauty&rsquo;s earnings report. We&rsquo;ll learn more about the company&rsquo;s performance when that report comes out. However, the stock looks like a long-term winner that can reward patient investors.



<h2>Intuit (INTU)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2022/11/intu1600-300x169.png" alt="Person holding cellphone with logo of US financial software company Intuit Inc. (INTU) on screen in front of business webpage. Focus on phone display. Unmodified photo."><div>Source: T. Schneider / Shutterstock.com</div></div>Intuit&nbsp;(NASDAQ:<a href="https://investorplace.com/stock-quotes/intu-stock-quote/">INTU</a>) offers financial software like QuickBooks and TurboTax. The stock has generated an impressive 141% gain over the past five years and is rated as a &ldquo;<a href="https://www.tipranks.com/stocks/intu/forecast">Strong Buy</a>.&rdquo; The stock has a projected 16% upside from current levels. The highest price target of $775 per share implies a 27% gain.



Although the stock has been a steady outperformer, shares have been down by roughly 8% since the start of March. It&rsquo;s entering correction territory and can become more attractive for long-term investors. The stock currently has a 62.5 P/E ratio and a 0.59% dividend yield. The company has an&nbsp;<a href="https://www.koyfin.com/company/intu/dividends/#:~:text=Dividend%20History%20and%20Growth&amp;text=(%20INTU%20)%20dividend%20payments%20per%20share,over%20the%20past%20120%20months.">annualized 16.65% dividend growth rate</a>&nbsp;over the past decade.&nbsp;



The fintech firm continues to grow and reported 11% year-over-year revenue growth in Q2 FY24. The company reiterated its full-year guidance in the press release. Its largest segment, &ldquo;Small Business and Self-Employed Group Revenue,&rdquo; grew by 18% compared to the same period last year.



<h2>ServiceNow (NOW)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2022/06/servicenow-now-1600-300x169.jpg" alt="ServiceNow office building in Silicon Valley;"><div>Source: Sundry Photography / Shutterstock.com</div></div>ServiceNow&nbsp;(NYSE:<a href="https://investorplace.com/stock-quotes/now-stock-quote/">NOW</a>) is a software company that helps businesses work more efficiently. The company&rsquo;s Work Flow technology helps companies stay on top of tasks and create chatbots. ServiceNow generates steady recurring revenue from more than&nbsp;<a href="https://www.servicenow.com/content/dam/servicenow-assets/public/en-us/doc-type/other-document/servicenow-fact-sheet.pdf">8,100 enterprise customers</a>&nbsp;with a 99% renewal rate. That customer base includes approximately 85% of the Fortune 500.



The firm generates high cash flow and is expanding its profit margins. The company exceeded guidance in&nbsp;<a href="https://www.servicenow.com/company/media/press-room/fourth-quarter-full-year-2023-financial-results.html">Q4 2023</a>&nbsp;with 26% year-over-year revenue growth and 97% year-over-year net income growth. The company has 1,897 customers with annual contract values above $1 million. ServiceNow added 168 customers to that category in Q4 2023 which is a 33% year-over-year improvement in the number of added $1M+ customers.



The stock currently trades at a&nbsp;<a href="https://finance.yahoo.com/quote/NOW/key-statistics">56-forward P/E ratio</a>&nbsp;and has outperformed the stock market over several years. Shares have gained 179% over the past five years. The stock is rated as a &ldquo;<a href="https://www.tipranks.com/stocks/now/forecast">Strong Buy</a>&rdquo; with a projected 15% upside.



<h2>Cintas (CTAS)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2019/09/ctas-stock-300x169.jpg" alt="Image of the Cintas (CTAS) logo on the side of a white van."><div>Source: Sundry Photography / Shutterstock.com</div></div>Cintas&nbsp;(NASDAQ:<a href="https://investorplace.com/stock-quotes/ctas-stock-quote/">CTAS</a>) has been beating the stock market for a while. The stock is up by 13% year-to-date and has a 208% gain over the past five years. Investors accumulated more shares after the company&rsquo;s solid&nbsp;<a href="https://www.cintas.com/newsroom/details/news/2024/03/27/cintas-corporation-announces--fiscal-2024-third-quarter-results/">Q3 FY24 earnings report</a>.



The company increased its revenue by 9.9% year-over-year. Meanwhile, net income came in at $397.6 million which was a 22.0% year-over-year increase. Cintas&rsquo; profit margins are expanding, and the company still has growth opportunities.



Cintas provides business supplies and safety equipment for more than one million businesses in North America. The company&rsquo;s revenue is well-diversified due to the large customer base, but Cintas can continue to reach additional businesses in North America.&nbsp;



The company hiked its annual revenue exceptions from a range of $9.48 to $9.56 billion to $9.57 billion to $9.60 billion after the latest earnings report. Higher revenue and diluted EPS expectations have investors excited and spell out a promising long-term opportunity.&nbsp;



<h2>Meta Platforms (META)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2024/01/meta1600-1-300x169.png" alt="In this photo illustration the Meta logo seen displayed on a smartphone and in the background the Facebook logo"><div>Source: rafapress / Shutterstock.com</div></div>Meta Platforms&nbsp;(NASDAQ:<a href="https://investorplace.com/stock-quotes/meta-stock-quote/">META</a>) is up by 44% year-to-date and many analysts believe that the stock can march higher. The social media giant has a&nbsp;<a href="https://www.tipranks.com/stocks/meta/forecast">projected 9% upside</a>&nbsp;from its current price. Meta Platforms is rated as a &ldquo;Strong Buy&rdquo; among 43 analysts. The highest price target of $600 per share suggests a potential 20% gain.



The company continues to achieve impressive revenue growth while delivering substantial profit margin expansion. Revenue jumped by 25% year-over-year in&nbsp;<a href="https://s21.q4cdn.com/399680738/files/doc_financials/2023/q4/Meta-12-31-2023-Exhibit-99-1-FINAL.pdf">Q4 2023</a>&nbsp;while net income more than tripled compared to the same period last year.&nbsp;



More people continue to create accounts for Meta Platforms&rsquo; family of apps. Family daily active users increased by 8% year-over-year while monthly active users jumped by 6% year-over-year. Instagram and WhatsApp are delivering higher growth rates than Facebook.&nbsp;



The corporation is committed to increasing shareholder value based on its $20.03 billion stock buyback in full-year 2023. The recently issued dividend can also attract dividend growth investors who want to get paid for holding onto their favorite stocks. This also makes it one of those growth stocks to buy now.



On this date of publication, Marc Guberti held long positions in AMZN, ELF, and NOW. The opinions expressed in this article are those of the writer, subject to the&nbsp;<a href="https://investorplace.com/">InvestorPlace.com</a><a href="https://investorplace.com/corporate/investorplace-publishing-guidelines/">Publishing Guidelines.</a>
<div>Marc Guberti is a finance freelance writer at InvestorPlace.com who hosts the Breakthrough Success Podcast. He has contributed to several publications, including the U.S. News &amp; World Report, Benzinga, and Joy Wallet.</div><h3>More From InvestorPlace</h3>
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The post <a href="https://investorplace.com/2024/04/7-growth-stocks-to-buy-now-q2-edition/">7 Growth Stocks to Buy Now: Q2 Edition</a> appeared first on <a href="https://investorplace.com">InvestorPlace</a>.

7 Growth Stocks to Buy Now: Q2 Edition

<a href="https://investorplace.com">InvestorPlace - Stock Market News, Stock Advice &amp; Trading Tips</a>
Everyone should save up for retirement. Even saving a few extra dollars each month can go a long way since it builds a habit and makes you more conscious about long-term goals. This reality has led to my list of retirement stocks to buy now.



Buying retirement stocks can result in less volatility and steady cash flow. Some corporations have been paying dividends for decades, and a few companies have been around for more than 100 years. Some retirement stocks are poised to check off both of those boxes for long-term investors.&nbsp;



If you want to build up your retirement portfolio, these three retirement stocks to buy now are worth considering.



<h2>Walmart (WMT)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2019/08/wm-stock-10-300x169.jpg" alt="Image of Walmart (WMT) logo on Walmart store with clear blue sky in the background"><div>Source: Jonathan Weiss / Shutterstock.com</div></div>Walmart&nbsp;(NYSE:<a href="https://investorplace.com/stock-quotes/wmt-stock-quote/">WMT</a>) offers a respectable dividend yield, growth prospects, and a significant competitive advantage. The retailer is the top place for buying affordable products. Walmart has carved itself as a leader since its founding more than 60 years ago.&nbsp;



The retailer has achieved steady revenue and earnings growth over the years. Revenue came in 5.7% higher in&nbsp;<a href="https://s201.q4cdn.com/262069030/files/doc_earnings/2024/q4/earnings-result/Earnings-Release-2024-Q4.pdf">Q4 FY24</a>. Success with global e-commerce sales and advertising is exciting for the company and can result in higher profit margins. Leadership felt optimistic enough to hike the dividend by 9% this year. That&rsquo;s the highest dividend increase in more than a decade. The dividend hike also comes amid a recent stock split. It seems like the company is focused on providing value for shareholders.



Analysts have noticed Walmart&rsquo;s successes and have rated the stock as a &ldquo;<a href="https://www.tipranks.com/stocks/wmt/forecast">Strong Buy</a>.&rdquo; The stock has a projected 9% upside. The highest price target of $75.99 per share suggests a 27% rally. The company&rsquo;s recent acquisition of Vizio Holdings can help with that price target. Vizio will expand Walmart&rsquo;s advertising segment, which will generate higher profit margins than retail sales. It&rsquo;s one of those retirement stocks to buy now.



<h2>Caterpillar (CAT)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2019/08/construction-1-300x169.jpg" alt="two construction workers on a worksite"><div>Source: Shutterstock</div></div>Caterpillar&nbsp;(NYSE:<a href="https://investorplace.com/stock-quotes/cat-stock-quote/">CAT</a>) is a top-notch construction equipment company that has been in business for almost 100 years. The stock has a reasonable 18 P/E ratio and a 1.42% dividend yield. Dividend growth investors will love the fact that Caterpillar has raised its dividend by an&nbsp;<a href="https://www.koyfin.com/company/cat/dividends/#:~:text=CAT%20's%20annual%20dividend%20is,receive%20the%20next%20dividend%20payment.">annualized 8.70% over the past five years</a>.&nbsp;



Construction is an essential service and will remain in demand regardless of the economic cycle. The prospect of lower interest rates can drum up more demand for the sector and accelerate Caterpillar&rsquo;s revenue. The Federal Reserve&nbsp;<a href="https://www.reuters.com/markets/us/inflation-still-too-high-fed-cut-interest-rates-schmid-says-2024-04-12/">isn&rsquo;t in a rush to reduce rates</a>, but it can happen by the end of the year. That development should help Caterpillar, but it&rsquo;s already doing fine as it is.



<a href="https://investors.caterpillar.com/news/news-details/2024/Caterpillar-Reports-Fourth-Quarter-and-Full-Year-2023-Results/default.aspx">Full-year revenue</a>&nbsp;increased by 13% year-over-year. Full-year profits rose from $12.64 per share in 2022 to $20.12 per share in 2023. Caterpillar also returned $7.5 billion to shareholders through stock buybacks and dividend distributions. The stock has outperformed the market with a 25% year-to-date gain and a 163% gain over the past five years.



<h2>Cintas (CTAS)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2019/09/ctas-stock-300x169.jpg" alt="Image of the Cintas (CTAS) logo on the side of a white van."><div>Source: Sundry Photography / Shutterstock.com</div></div>Cintas&nbsp;(NASDAQ:<a href="https://investorplace.com/stock-quotes/ctas-stock-quote/">CTAS</a>) provides business supplies and safety equipment for&nbsp;<a href="https://www.cintas.com/newsroom/details/news/2024/03/19/cintas-named-one-of-forbes--america-s-best-large-employers/#:~:text=Cintas%20Corporation%20helps%20more%20than,safe,%20and%20looking%20their%20best.">more than one million businesses</a>&nbsp;in North America. The company&rsquo;s stock has exceeded market returns. It&rsquo;s up by 13% year-to-date and has gained 208% over the past five years.&nbsp;



Cintas has a 0.81% dividend yield and has commanded an impressive growth rate. The firm has an annualized&nbsp;<a href="https://www.koyfin.com/company/ctas/dividends/#:~:text=CTAS%20's%20annual%20dividend%20is,receive%20the%20next%20dividend%20payment.">21.05% dividend growth rate</a>&nbsp;over the past decade. The company recently hiked its dividend by 17.1%.



Investors cheered on the company&rsquo;s&nbsp;<a href="https://www.cintas.com/newsroom/details/news/2024/03/27/cintas-corporation-announces--fiscal-2024-third-quarter-results/">recent earnings report</a>&nbsp;which showed big increases in revenue and net income. Net sales increased by 9.9% year-over-year while net income was up by 22.0% year-over-year. Cintas is gaining market share but still has plenty of opportunities left to explore.&nbsp;



Data from the U.S. Small Business Administration reveals there are&nbsp;<a href="https://www.certifiedeo.com/blog-posts/how-many-businesses-are-there-in-america-and-what-does-it-mean-for-employee-ownership#:~:text=According%20to%20the%20U.S.%20Small,solely%20to%20hold%20an%20asset.">33.2 million businesses</a>&nbsp;in the United States alone. Not all of these businesses are good fits for Cintas since this data includes independent contractors with LLCs. However, it shows that the company can tap into more opportunities and reward long-term investors.



On the date of publication, Marc Guberti did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the&nbsp;<a href="https://investorplace.com/">InvestorPlace.com</a><a href="https://investorplace.com/corporate/investorplace-publishing-guidelines/">Publishing Guidelines.</a>
<div>Marc Guberti is a finance freelance writer at InvestorPlace.com who hosts the Breakthrough Success Podcast. He has contributed to several publications, including the U.S. News &amp; World Report, Benzinga, and Joy Wallet.</div><h3>More From InvestorPlace</h3>
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The post <a href="https://investorplace.com/2024/04/3-retirement-stocks-to-buy-now-q2-edition/">3 Retirement Stocks to Buy Now: Q2 Edition</a> appeared first on <a href="https://investorplace.com">InvestorPlace</a>.

3 Retirement Stocks to Buy Now: Q2 Edition

With rate cuts pushed out, Goldman looks at quality stocks

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<a href="https://investorplace.com">InvestorPlace - Stock Market News, Stock Advice &amp; Trading Tips</a>
Spinoffs are an interesting investment opportunity. These are corporate transactions meant to separate at least two businesses from one another. Many times investors wake to find a new stock added to their portfolios. They don&rsquo;t know where it came from or even what it does.



Recently I found I was the proud owner of Solventum (NYSE:<a href="https://investorplace.com/stock-quotes/solv-stock-quote/">SOLV</a>). Although I knew 3M (NYSE:<a href="https://investorplace.com/stock-quotes/mmm-stock-quote/">MMM</a>) was spinning off its healthcare business, I hadn&rsquo;t realized the industrial conglomerate completed the transaction. While I&rsquo;ll be holding onto the stock, many investors in similar situations sell the spinoff. They were investing in the parent company and have no interest in this ancillary business.&nbsp;



Yet spinoffs can be lucrative stocks to buy and own. In his excellent book &ldquo;You Can Be a Stock Market Genius,&rdquo; author Joel Greenblatt says:




 &ldquo;There are plenty of reasons why a company might choose to unload or otherwise separate itself from the fortunes of the business to be spun off. There is only one reason to pay any attention when they do: you can make a pile of money investing in spin-offs.&rdquo;




A Penn State study backs up those assertions, finding that over the <a href="https://honors.libraries.psu.edu/files/final_submissions/1158">25-year period reviewed</a>, spinoff stocks handily beat their industry peers and the S&amp;P 500 by about 10 percentage points per year over the three years following the spinoff. The biggest gains happened in the second year of independence.



However, more recent data casts a different view. <a href="https://hbr.org/2022/12/research-few-corporate-spinoffs-deliver-value">Harvard Business Review</a> says of the 350 spinoffs valued at $1 billion or more it looked at between 2000 and 2020, half failed to create any new combined value within two years of separation. And a quarter of them destroyed &ldquo;a significant amount&rdquo; of shareholder value. Its conclusion was spinoffs &ldquo;delivered as little as a 5% increase in combined market cap two years after spinning off.&rdquo;



Sometimes, spinoffs harbor deep, hidden problems that can cause deep losses if you&rsquo;re not careful. Maybe investors need to be more wary. What follows are three disappointing spinoffs that failed to live up to their potential so far.



<h2>Warner Bros Discovery (WBD)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2022/04/wbd-stock-1-300x169.jpg" alt="A close-up of the blue and yellow Warner Bros (WBD) sign."><div>Source: Ingus Kruklitis / Shutterstock.com</div></div>Movie and television entertainment company Warner Bros Discovery (NASDAQ:<a href="https://investorplace.com/stock-quotes/wbd-stock-quote/">WBD</a>) should have been a hit. AT&amp;T&lsquo;s (NYSE:<a href="https://investorplace.com/stock-quotes/t-stock-quote/">T</a>) WarnerMedia business was spun off in April 2022 and then immediately merged with TV and streaming company Discovery. The resulting Warner Bros Discovery has struggled almost from the day it went public.



AT&amp;T shed the media unit to focus on its telecom business. It also allowed it to pay down the mountain of debt the telecom had amassed over the years. WarnerMedia owned the venerable HBO brand and the HBO Max streaming service. Discovery had numerous TV properties including TLC, HGTV and Food Network, but also the Discovery+ streaming business. Together the two companies would be an entertainment powerhouse because of the Warner Bros Pictures movie studio with its library of films.



Unfortunately, it hasn&rsquo;t worked out like that. The stock has lost almost 70% of its value since being spun off. Streaming, it turns out, is a harder business to profit from. While Warner Bros Discovery is one of the <a href="https://www.sec.gov/ix?doc=/Archives/edgar/data/1437107/000143710724000017/wbd-20231231.htm">few profitable streaming services</a>, generating $103 million in adjusted EBITDA from its direct-to-consumer business, it has yet to make up for the $1.6 billion it lost the year before. On the surface, its scale, distribution network, production studios and content ought to ensure it survives the changing media landscape but it&rsquo;s not likely to be a high-growth stock.



<h2>Orion Office REIT (ONL)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2019/07/realty1600-300x169.jpg" alt="realty income logo highlighted by a magnifying glass on a web browser"><div>Source: Shutterstock</div></div>Real estate investment trust (REIT) Orion Office REIT (NYSE:<a href="https://investorplace.com/stock-quotes/onl-stock-quote/">ONL</a>) was a case of don&rsquo;t-want-itis. That is a term used to describe motivated homeowners looking to sell fast. It applies equally to former parent Realty Income (NYSE:<a href="https://investorplace.com/stock-quotes/o-stock-quote/">O</a>), which wanted to shed its office property assets.



Realty Income is a specialty retail REIT specializing in certain types of properties, typically one-tenant retail locations. The majority of its portfolio consists of retailers including Walmart (NYSE:<a href="https://investorplace.com/stock-quotes/wmt-stock-quote/">WMT</a>), Dollar General (NYSE:<a href="https://investorplace.com/stock-quotes/dg-stock-quote/">DG</a>), Kroger (NYSE:<a href="https://investorplace.com/stock-quotes/kr-stock-quote/">KR</a>) and Costco (NASDAQ:<a href="https://investorplace.com/stock-quotes/cost-stock-quote/">COST</a>). Particularly through its acquisition of VEREIT, the character of Realty Income&rsquo;s portfolio changed. Managing offices is not the same as managing retail space and the office market is in trouble. 



Vacancy rates hit a <a href="https://www.bloomberg.com/news/articles/2024-04-02/office-vacancy-rate-nears-20-to-set-fresh-record-moody-s-says#:~:text=US%20office%20vacancies%20hit%20a,the%20fourth%20quarter%20of%202023.">record 19.8% in the first quarter</a> and have been steadily climbing. Orion&rsquo;s stock has lost 86% of its value since being spun off in November 2021.&nbsp;



While office vacancies have always yo-yo&rsquo;d over the years, the pandemic set a permanent change in the market. The work-from-home model exploded, and though many people have returned to the office, many others have not. Businesses are also sharply downsizing their workforce, meaning they don&rsquo;t need as much square footage. Orion seems as if it will have a hard road to travel to make itself an investment-worthy stock.



<h2>Vestis (VSTS)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2021/09/armk_aramark_1600-300x169.jpg" alt="A photo of a building with the Aramark (ARMK) logo on it over the door."><div>Source: Jonathan Weiss/ShutterStock.com</div></div>Spun off from Aramark (NASDAQ:<a href="https://investorplace.com/stock-quotes/armk-stock-quote/">ARMK</a>) <a href="https://aramark.gcs-web.com/news-releases/news-release-details/aramark-board-directors-approves-spin-vestistm">last October</a>, the uniforms and workplace supplies provider Vestis (NASDAQ:<a href="https://investorplace.com/stock-quotes/vsts-stock-quote/">VSTS</a>) services manufacturing, hospitality, retail, food service and numerous other industries. The stock has been largely a disappointment since its separation, essentially treading water while rival Cintas (NASDAQ:<a href="https://investorplace.com/stock-quotes/ctas-stock-quote/">CTAS</a>) runs 45% ahead.



However, Vestis <a href="https://finance.yahoo.com/news/vestis-corporation-earnings-missed-analyst-123021419.html#:~:text=Vestis%20Corporation%20(NYSE%3AVSTS),just%20US%240.05%20per%20share.">badly missed Wall Street estimates</a> last week and the stock&rsquo;s knees were cut out from under it. Shares plunged on the report and Vestis has lost nearly half its value.



The company&rsquo;s fiscal second-quarter report showed Vestis is having trouble keeping customers. CEO Kim Scott said the workplace supplier was going to limit raising its prices to improve customer retention, showing just how hard the economic environment is for businesses. But it doesn&rsquo;t explain how Cintas, the <a href="https://eaglepointcapital.substack.com/p/vestis-recent-spinoff-in-an-attractive">industry leader with about a 20% share</a> of the market, continues growing. Vestis is the second-largest player but trails far behind with a 6% share.



There may be leverage Vestis can use to improve its position. It could cross-sell customers other services, such as floor care, restroom supplies or first aid supplies, though it hasn&rsquo;t worked out that way. At least not yet.



Vestis has only been on the market for less than a year so it may take time. Depending upon whose research you look at, it may take a couple of years for a spinoff to finally pay off. Or the promised shareholder value may never get unlocked.



On the date of publication, Rich Duprey held a LONG position in SOLV, MMM, WBD, T, ONL and O stock. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com <a href="https://investorplace.com/corporate/investorplace-publishing-guidelines/">Publishing Guidelines</a>.
<div>Rich Duprey has written about stocks and investing for the past 20 years. His articles have appeared on Nasdaq.com, The Motley Fool, and Yahoo! Finance, and he has been referenced by U.S. and international publications, including MarketWatch, Financial Times, Forbes, Fast Company, USA Today, Milwaukee Journal Sentinel, Cheddar News, The Boston Globe, L&rsquo;Express, and numerous other news outlets.</div><h3>More From InvestorPlace</h3>
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The post <a href="https://investorplace.com/2024/05/3-spinoff-stocks-that-failed-to-impress-is-the-model-broken/">3 Spinoff Stocks That Failed to Impress &#8211; Is the Model Broken?</a> appeared first on <a href="https://investorplace.com">InvestorPlace</a>.

3 Spinoff Stocks That Failed to Impress – Is the Model Broken?

Companies in the Industrial Goods sector have received a lot of coverage today as analysts weigh in on AeroVironment (AVAV – Research Report), Grai...

Analysts Have Conflicting Sentiments on These Industrial Goods Companies: AeroVironment (AVAV), Graincorp Limited Class A (OtherGRCLF) and Cintas (CTAS)

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Cintas Stock (NASDAQ:CTAS), Short Interest Report

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