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3 Reasons to Add Republic Services (RSG) to Your Portfolio
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Republic Services Inc. (RSG - Free Report) is reportedly a leading domestic non-hazardous solid waste company in the U.S. It provides non-hazardous solid waste disposal services for commercial, industrial, municipal and residential applications across the country.
The company is currently focusing on increasing its operational efficiency by shifting to compressed natural gas collection vehicles and converting rear-loading trucks to automated-side loaders, which will reduce cost and improve profitability. Republic Services is also focused on enhancing its operations by streamlining the cost structure, improving revenue quality and seeking growth through profitable investment opportunities.
In addition, the company is realigning its field support functions by combining two organizational layers. It expects these initiatives to contribute approximately $25 million of annual cost savings from 2018. As part of the realignment program, the company centralized the management structure for recycling operations. The new organizational structure is likely to ensure a clear ownership for the recycling and processing market vertical.
Let us have a look on the reasons that make the stock a must buy at the moment.
Solid Rank & VGM Score
Republic Services currently has a Zacks Rank #2 (Buy) and a Value Growth Momentum Score (VGM Score) of ‘B’. Our research shows that stocks with a VGM Score of ‘A’ or ‘B’ combined with a Zacks Rank #1 (Strong Buy) or #2, offer the best investment opportunities for investors. Consequently, the company appears to be a solid investment proposition at the moment.
Estimate Revisions
Over the last month, Republic Services’ current-year estimates increased from $2.35 to $2.37 per share. With positive estimate revisions, investor sentiments clearly appear to be bullish on the stock. Furthermore, the company has healthy long-term growth expectation of 9.2%.
Year-to-Date Price Performance
Republic Services’ shares have performed relatively better than the Zacks categorized Waste Removal Services industry with an average year-to-date return of 10.6% compared with a 7.1% gain for the latter. The company is currently focusing on a series of quality acquisition opportunities, primarily of recycling assets, which are likely to act as a catalyst for a healthy long-term growth in its top 25 markets. Republic Services is also transitioning to a fee-based recycling processing model to cover processing costs and generate a healthy ROI (return on investment).
Moving Forward
Republic Services continues to focus on prudent investment decisions for a disciplined capital allocation, strong and flexible balance sheet position and cash flow enhancement to support dividend growth. We believe that such moves, along with its robust operating platform and an efficient management team will help in the execution of its strategic priorities and drive net asset value.
Waste Management has a long-term earnings growth expectation of 9.5%. It topped estimates twice in the trailing four quarters with an average positive earnings surprise of 1.7%.
CBIZ surpassed estimates twice in the trailing four quarters with an average positive earnings surprise of 18.4%.
NV5 Global has a long-term earnings growth expectation of 20.0%. It surpassed estimates twice in the trailing four quarters with an average positive earnings surprise of 1.8%.
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>
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3 Reasons to Add Republic Services (RSG) to Your Portfolio
Republic Services Inc. (RSG - Free Report) is reportedly a leading domestic non-hazardous solid waste company in the U.S. It provides non-hazardous solid waste disposal services for commercial, industrial, municipal and residential applications across the country.
The company is currently focusing on increasing its operational efficiency by shifting to compressed natural gas collection vehicles and converting rear-loading trucks to automated-side loaders, which will reduce cost and improve profitability. Republic Services is also focused on enhancing its operations by streamlining the cost structure, improving revenue quality and seeking growth through profitable investment opportunities.
In addition, the company is realigning its field support functions by combining two organizational layers. It expects these initiatives to contribute approximately $25 million of annual cost savings from 2018. As part of the realignment program, the company centralized the management structure for recycling operations. The new organizational structure is likely to ensure a clear ownership for the recycling and processing market vertical.
Let us have a look on the reasons that make the stock a must buy at the moment.
Solid Rank & VGM Score
Republic Services currently has a Zacks Rank #2 (Buy) and a Value Growth Momentum Score (VGM Score) of ‘B’. Our research shows that stocks with a VGM Score of ‘A’ or ‘B’ combined with a Zacks Rank #1 (Strong Buy) or #2, offer the best investment opportunities for investors. Consequently, the company appears to be a solid investment proposition at the moment.
Estimate Revisions
Over the last month, Republic Services’ current-year estimates increased from $2.35 to $2.37 per share. With positive estimate revisions, investor sentiments clearly appear to be bullish on the stock. Furthermore, the company has healthy long-term growth expectation of 9.2%.
Year-to-Date Price Performance
Republic Services’ shares have performed relatively better than the Zacks categorized Waste Removal Services industry with an average year-to-date return of 10.6% compared with a 7.1% gain for the latter. The company is currently focusing on a series of quality acquisition opportunities, primarily of recycling assets, which are likely to act as a catalyst for a healthy long-term growth in its top 25 markets. Republic Services is also transitioning to a fee-based recycling processing model to cover processing costs and generate a healthy ROI (return on investment).
Moving Forward
Republic Services continues to focus on prudent investment decisions for a disciplined capital allocation, strong and flexible balance sheet position and cash flow enhancement to support dividend growth. We believe that such moves, along with its robust operating platform and an efficient management team will help in the execution of its strategic priorities and drive net asset value.
Other top stocks in the industry include Waste Management Inc. (WM - Free Report) , CBIZ, Inc. (CBZ - Free Report) and NV5 Global, Inc. (NVEE - Free Report) , each carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Waste Management has a long-term earnings growth expectation of 9.5%. It topped estimates twice in the trailing four quarters with an average positive earnings surprise of 1.7%.
CBIZ surpassed estimates twice in the trailing four quarters with an average positive earnings surprise of 18.4%.
NV5 Global has a long-term earnings growth expectation of 20.0%. It surpassed estimates twice in the trailing four quarters with an average positive earnings surprise of 1.8%.
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>