The stock market declined on Tuesday amid concerns on a huge tax-and-spending bill that is expected to add to the national debt and a credit rating downgrade on U.S. by Moody’s Ratings. In addition, economists expect tariffs to pass through consumers through price increases.
Overall, S&P 500 and NASDAQ both fell 0.4% to 5,940 and 19,143, respectively.
Tweet of the Day
Food delivery $TSLA https://t.co/ABFaGF8GAb
— David Sharek (@GrowthStockGuy) May 18, 2025
Chart of the Day
Here is the one-year chart of Cintas Corporation (CTAS) as of April 7, 2025, when the stock was at $191.
The company managed to deliver 18% profit growth on 8% revenue growth. Operating margin reached an all-time high, while gross margin also hit a record. Despite such, tariffs remain top-of-mind for investors given the recent stock market shakiness.
Management stated that it is too early to tell any tariff impact that might have. However, it emphasized that the company’s supply chain is a strategic advantage, with less than 10% of products being sole-sourced. With Cintas’ dual sourcing strategy in place, management is confident that any tariffs on Mexico and China will be effectively managed and addressed with customers as needed.
CTAS is on the radar for our Conservative Growth Portfolio. David Sharek, Founder of School of Hard Stocks, is looking for the stock to pull back so we can invest.
