Phoenix, Arizona-based Republic Services, Inc. (RSG) offers environmental services in the United States and Canada. With a market cap of $73.1 billion, Republic Services operates as the second-largest provider of non-hazardous solid waste collection, transfer, disposal, recycling, and energy services in the United States.
Companies worth $10 billion or more are generally described as “large-cap stocks,” RSG fits this bill perfectly. Given the company’s extensive operations and dominance in the waste management industry, its valuation above this mark is unsurprising.
Republic Services recently touched its all-time high of $240.95 on Mar. 4 and is currently trading 2.8% below that peak. RSG stock has surged 8.1% over the past three months, outperforming the S&P 500 Index’s ($SPX) 5.3% decline during the same time frame.
Over the longer term, RSG’s performance looks much more attractive. RSG stock soared 27.3% over the past 52 weeks and 15.5% over the past six months, significantly outperforming SPX’s 11.9% gains over the past year and a 6.7% uptick over the past six months.
To confirm the bullish trend, RSG has traded consistently above its 200-day moving average over the past year and above its 50-day moving average since mid-January.
Republic Services stock prices gained 3.1% in the trading session after the release of its impressive Q4 results on Feb. 13. The company showcased effective execution by delivering solid topline growth and margin expansion. During the quarter, Republic experienced an increase in organic as well as inorganic revenues, leading to a 5.6% year-over-year increase in overall topline to more than $4 billion. Meanwhile, its cost of operations and SG&A expenses increased at a much more modest rate. This led to a solid 11.4% year-over-year growth in adjusted net income to $497 million and its adjusted EPS of $1.58 surpassed the Street’s expectations by 15.3%, boosting investor confidence.
Republic Services has also outperformed the industry leader Waste Management, Inc.’s (WM) 12.1% gains over the past six months and 10.8% returns over the past 52 weeks.
Among the 21 analysts covering the RSG stock, the consensus rating is a “Moderate Buy.” RSG’s mean price target of $246.05 represents a modest 5.1% premium to current price levels.
On the date of publication, Aditya Sarawgi 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
