Here’s an unpopular truth when it comes to the stock market – good investing can be boring at times. While trying to get in early on the next big growth story may be exhilarating, allowing solid companies to drive the growth of your portfolio over time will most often pay significant dividends into the future.
We want to identify stocks that held up well this year amidst the volatility, as these companies are likely to continue their upward trajectories as the market settles down. These types of high probability, low-risk investments can drive portfolio returns and help to smooth out profit flow.
Only the strongest stocks in the most powerful uptrends were able to weather the storm this year. And not only were the following companies able to do that, but now they have gone on to make new all-time monthly highs as the market has snapped back – a very bullish sign.
Let’s take a closer look at these market leaders and their industry group.
The Waste Removal Industry
Waste removal is an industry that isn’t all that glamorous. Yet when some of the top financial institutions in the world are the largest holders of these stocks, there’s a good reason for it and investors would be wise to pay close attention.
The Zacks Waste Removal Services industry is currently ranked in the top 14% out of approximately 250 industries. Because it is ranked in the top half of all Zacks Ranked Industries, we expect it to outperform the market over the next 3 to 6 months. Digging a bit deeper, this industry has held up much better than the S&P 500 this year, falling about 5% versus an 11% loss for the blue-chip index.
Quantitative research studies have repeatedly illustrated that approximately half of a stock’s future price appreciation is due to its industry group. By targeting stocks within leading industries, we can provide a constant ‘tailwind’ to our investing success.
2 Stocks Showing Relative Strength
Waste Management, Inc. (WM)
Waste Management is a leading provider of integrated environmental solutions in North America, serving municipal, commercial and industrial customers. Headquartered in Houston, TX, WM has the largest network of recycling facilities and landfills in the industry, and its fleet of natural gas trucks is the largest heavy-duty truck fleet in North America.
A Zacks Rank #2 (Buy) stock, WM has built a healthy track record of earnings surprises, missing estimates just once in the last five years. The company most recently reported Q2 EPS last month of $1.44/share, a 5.88% surprise over the $1.36 consensus estimate. Take a look below at the steady performance over the last decade.
Dividend payments and share buybacks have continued to provide support for the stock. The Zacks Consensus Estimates for revenue and EPS for the current year stand at $19.77 billion (10.27% growth) and $5.70 (17.77% growth), respectively.
Republic Services, Inc. (RSG)
Republic Services provides waste collection, recycling, disposal, and energy services for commercial, industrial, municipal, and residential customers in the United States and Puerto Rico. Headquartered in Phoenix, AZ, RSG operates over 300 collection facilities in 39 different states.
A Zacks #2 Buy stock, RSG has put together a notable track record of earnings surprises, surpassing estimates in each quarter over the past five years. The company most recently reported Q2 EPS last week of $1.32/share, an 11.86% surprise over estimates. RSG has a trailing four-quarter average earnings surprise of 7.3%. Also note the steady performance during the last decade, enduring through multiple bear markets.
RSG management continues to raise guidance and their consistency with dividend payments and share buybacks will ensure that investor confidence remains strong. Analysts covering the firm have revised their full-year earnings estimates upward by nearly 2.6% over the past 60 days to $4.78 – a 14.6% growth rate over last year.
Make sure to keep an eye on these steady, dividend-paying stocks that have also delivered substantial price appreciation over the long-term.
Free Report Reveals How You Could Profit from the Growing Electric Vehicle Industry
Globally, electric car sales continue their remarkable growth even after breaking records in 2021. High gas prices have fueled his demand, but so has evolving EV comfort, features and technology. So, the fervor for EVs will be around long after gas prices normalize. Not only are manufacturers seeing record-high profits, but producers of EV-related technology are raking in the dough as well. Do you know how to cash in? If not, we have the perfect report for you – and it’s FREE! Today, don't miss your chance to download Zacks' top 5 stocks for the electric vehicle revolution at no cost and with no obligation.
>>Send me my free report on the top 5 EV stocks<<
Here’s an unpopular truth when it comes to the stock market – good investing can be boring at times. While trying to get in early on the next big growth story may be exhilarating, allowing solid companies to drive the growth of your portfolio over time will most often pay significant dividends into the future.
We want to identify stocks that held up well this year amidst the volatility, as these companies are likely to continue their upward trajectories as the market settles down. These types of high probability, low-risk investments can drive portfolio returns and help to smooth out profit flow.
Only the strongest stocks in the most powerful uptrends were able to weather the storm this year. And not only were the following companies able to do that, but now they have gone on to make new all-time monthly highs as the market has snapped back – a very bullish sign.
Let’s take a closer look at these market leaders and their industry group.
The Waste Removal Industry
Waste removal is an industry that isn’t all that glamorous. Yet when some of the top financial institutions in the world are the largest holders of these stocks, there’s a good reason for it and investors would be wise to pay close attention.
The Zacks Waste Removal Services industry is currently ranked in the top 14% out of approximately 250 industries. Because it is ranked in the top half of all Zacks Ranked Industries, we expect it to outperform the market over the next 3 to 6 months. Digging a bit deeper, this industry has held up much better than the S&P 500 this year, falling about 5% versus an 11% loss for the blue-chip index.
Quantitative research studies have repeatedly illustrated that approximately half of a stock’s future price appreciation is due to its industry group. By targeting stocks within leading industries, we can provide a constant ‘tailwind’ to our investing success.
2 Stocks Showing Relative Strength
Waste Management, Inc. (WM)
Waste Management is a leading provider of integrated environmental solutions in North America, serving municipal, commercial and industrial customers. Headquartered in Houston, TX, WM has the largest network of recycling facilities and landfills in the industry, and its fleet of natural gas trucks is the largest heavy-duty truck fleet in North America.
A Zacks Rank #2 (Buy) stock, WM has built a healthy track record of earnings surprises, missing estimates just once in the last five years. The company most recently reported Q2 EPS last month of $1.44/share, a 5.88% surprise over the $1.36 consensus estimate. Take a look below at the steady performance over the last decade.
Dividend payments and share buybacks have continued to provide support for the stock. The Zacks Consensus Estimates for revenue and EPS for the current year stand at $19.77 billion (10.27% growth) and $5.70 (17.77% growth), respectively.
Republic Services, Inc. (RSG)
Republic Services provides waste collection, recycling, disposal, and energy services for commercial, industrial, municipal, and residential customers in the United States and Puerto Rico. Headquartered in Phoenix, AZ, RSG operates over 300 collection facilities in 39 different states.
A Zacks #2 Buy stock, RSG has put together a notable track record of earnings surprises, surpassing estimates in each quarter over the past five years. The company most recently reported Q2 EPS last week of $1.32/share, an 11.86% surprise over estimates. RSG has a trailing four-quarter average earnings surprise of 7.3%. Also note the steady performance during the last decade, enduring through multiple bear markets.
RSG management continues to raise guidance and their consistency with dividend payments and share buybacks will ensure that investor confidence remains strong. Analysts covering the firm have revised their full-year earnings estimates upward by nearly 2.6% over the past 60 days to $4.78 – a 14.6% growth rate over last year.
Make sure to keep an eye on these steady, dividend-paying stocks that have also delivered substantial price appreciation over the long-term.
Free Report Reveals How You Could Profit from the Growing Electric Vehicle Industry
Globally, electric car sales continue their remarkable growth even after breaking records in 2021. High gas prices have fueled his demand, but so has evolving EV comfort, features and technology. So, the fervor for EVs will be around long after gas prices normalize. Not only are manufacturers seeing record-high profits, but producers of EV-related technology are raking in the dough as well. Do you know how to cash in? If not, we have the perfect report for you – and it’s FREE! Today, don't miss your chance to download Zacks' top 5 stocks for the electric vehicle revolution at no cost and with no obligation.
>>Send me my free report on the top 5 EV stocks<<
Get the latest research report on WM - FREE
Get the latest research report on RSG - FREE