Republic Services, Inc. (RSG), headquartered in Phoenix, Arizona, offers environmental services. Valued at $67.9 billion by market cap, the company provides solid waste collection services for commercial, industrial, municipal, and residential customers. It also operates transfer stations, landfills, and recycling facilities.
Companies worth $10 billion or more are generally described as “large-cap stocks,” and RSG perfectly fits that description, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the waste management industry. RSG's strong financial health and operational efficiency allow it to capitalize on market opportunities and manage costs effectively, enabling investment in growth opportunities. Strategic acquisitions, such as Advanced Chemical Transport LLC, enhance service offerings and expand geographical footprint, diversifying revenue streams and solidifying market position in the environmental solutions sector for long-term growth.
Despite its notable strength, RSG slipped 3.7% from its 52-week high of $220.58, achieved on Nov. 27. Over the past three months, RSG stock gained 3.4%, underperforming the VanEck Environmental Services ETF’s (EVX)8% gains during the same time frame.
In the longer term, shares of RSG rose 28.8% on a YTD basis and climbed 31.2% over the past 52 weeks, outperforming EVX’s 21.6% YTD gains and 25.4% returns over the last year.
To confirm the bullish trend, RSG has mostly traded above its 50-day moving average over the past year, with some fluctuations. The stock has been consistently trading above its 200-day moving average over the past year.
RSG has seen rapid growth due to increasing demand for waste management services driven by urbanization and sustainability regulations. The company's investments in recycling technologies and renewable energy infrastructure have bolstered its growth. In partnership with Archaea Energy, RSG is developing a renewable natural gas facility to support sustainability goals and reduce greenhouse gas emissions, which is expected to drive its success.
On Oct. 29, RSG shares closed up more than 1% after reporting its Q3 results. Its adjusted EPS of $1.81 surpassed Wall Street expectations of $1.62. The company’s revenue was $4.08 billion, falling short of Wall Street forecasts of $4.11 billion.
RSG’s rival, Waste Management, Inc. (WM) shares lagged behind the stock, with a 21.4% gain on a YTD basis and 26.1% returns over the past 52 weeks.
Wall Street analysts are moderately bullish on RSG’s prospects. The stock has a consensus “Moderate Buy” rating from the 21 analysts covering it, and the mean price target of $222.37 suggests a potential upside of 4.7% from current price levels.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here. More news from Barchart- 2 Tech Stocks That Could Start Paying Dividends in 2025
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