Republic Services, Inc. (RSG - Free Report) has had an impressive run over the past six months. The stock gained 13.9%, outperforming the 6.6% rally of the industry it belongs to.
RSG has an impressive Growth Score of B. This style score condenses all the essential metrics from the company’s financial statements to get a true sense of the quality and sustainability of its growth.
The company’s earnings for 2023 and 2024 are expected to grow at 8.5% and 10.1%, respectively, on a year-over-year basis. It has a long-term (three to five years) expected earnings growth rate of 9.6%.
Factors That Augur Well
Republic Services consistently rewards its shareholders through dividend payments and share repurchases. In 2022, 2021 and 2020, the company paid $592.9 million, $552.6 million and $522.5 million in dividends and repurchased shares worth $203.5 million, $252.2 million and $98.8 million, respectively. Such moves indicate the company’s commitment to creating value for shareholders and underline its confidence in its business. These initiatives not only instill investors’ confidence but also positively impact earnings per share.
Republic Services' current ratio (a measure of liquidity) at the end of second-quarter 2023 was 0.76, higher than its prior-year quarter's figure of 0.73. An increase in the current ratio indicates that the company should not have problems meeting its short-term obligations.
Some Risks
Republic Services has more long-term debt outstanding than cash. Cash and cash equivalent balance at the end of second-quarter 2023 was $182 million compared with the long-term debt level of $12 billion.
Zacks Rank and Stocks to Consider
Investors interested in the Zacks Business Services sector can consider the following better-ranked stocks:
Aptiv PLC (APTV - Free Report) : APTV currently has a Zacks Rank of 2 (Buy) and a VGM Score of A. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company has an impressive earnings surprise history, beating the consensus mark in all of the trailing four quarters. The average positive surprise being 13.4%.
Clean Harbors (CLH - Free Report) : CLH currently carries a Zacks Rank #2 (Buy) and has a VGM Score of B.
The company has an impressive earnings surprise history, beating the Zacks Consensus Estimate in all the trailing four quarters. The average positive surprise being 13%.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s an American AI company that’s riding low right now, but it has rounded up clients like BMW, GE, Dell Computer, and Bosch. It has prospects for not just doubling but quadrupling in the year to come. Of course, all our picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock And 4 Runners Up
Republic Services, Inc. (RSG - Free Report) has had an impressive run over the past six months. The stock gained 13.9%, outperforming the 6.6% rally of the industry it belongs to.
RSG has an impressive Growth Score of B. This style score condenses all the essential metrics from the company’s financial statements to get a true sense of the quality and sustainability of its growth.
The company’s earnings for 2023 and 2024 are expected to grow at 8.5% and 10.1%, respectively, on a year-over-year basis. It has a long-term (three to five years) expected earnings growth rate of 9.6%.
Factors That Augur Well
Republic Services consistently rewards its shareholders through dividend payments and share repurchases. In 2022, 2021 and 2020, the company paid $592.9 million, $552.6 million and $522.5 million in dividends and repurchased shares worth $203.5 million, $252.2 million and $98.8 million, respectively. Such moves indicate the company’s commitment to creating value for shareholders and underline its confidence in its business. These initiatives not only instill investors’ confidence but also positively impact earnings per share.
Republic Services' current ratio (a measure of liquidity) at the end of second-quarter 2023 was 0.76, higher than its prior-year quarter's figure of 0.73. An increase in the current ratio indicates that the company should not have problems meeting its short-term obligations.
Some Risks
Republic Services has more long-term debt outstanding than cash. Cash and cash equivalent balance at the end of second-quarter 2023 was $182 million compared with the long-term debt level of $12 billion.
Zacks Rank and Stocks to Consider
Investors interested in the Zacks Business Services sector can consider the following better-ranked stocks:
Aptiv PLC (APTV - Free Report) : APTV currently has a Zacks Rank of 2 (Buy) and a VGM Score of A. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company has an impressive earnings surprise history, beating the consensus mark in all of the trailing four quarters. The average positive surprise being 13.4%.
Clean Harbors (CLH - Free Report) : CLH currently carries a Zacks Rank #2 (Buy) and has a VGM Score of B.
The company has an impressive earnings surprise history, beating the Zacks Consensus Estimate in all the trailing four quarters. The average positive surprise being 13%.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s an American AI company that’s riding low right now, but it has rounded up clients like BMW, GE, Dell Computer, and Bosch. It has prospects for not just doubling but quadrupling in the year to come. Of course, all our picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock And 4 Runners Up
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