If there’s one thing that’s undoubtedly true over the past several years, it’s that technology stocks have been red-hot.
But while all that sounds fun and exciting, many have overlooked simple businesses that aren’t overly flashy. This includes companies that handle waste management, provide uniforms for staff, and even energy drink providers, to give a few examples.
Many of these companies fall into the Consumer Staples sector, whose businesses face steady demand across many economic conditions. In other words, companies will always need uniforms and other necessary items for their businesses, and the trash will always need to be taken out.
And perhaps to the surprise of some, these non-technology companies have seen wildly strong performance, with their predictable natures providing a nice shield against volatility.
Cintas Outperforms Meta Platforms
For example, Cintas $CTAS CTAS, the company that provides uniforms and other workplace supplies to employers, has gained +95% over the last five years, compared with a +80% gain from Meta $META Platforms META.
Image Source: Zacks Investment Research
Bottom Line
Simply put, you don’t have to buy tech stocks to see great returns. Lesser-discussed companies like Cintas CTAS have built consistent, dependable growth by doing the ‘simple’ things exceptionally well. Of course, they’re likely not to impress investors given their less-flashy nature, but sometimes boring is better.
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Cintas Corporation (CTAS): Free Stock Analysis Report
Meta Platforms, Inc. (META): Free Stock Analysis Report