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Here's Why Investors Should Buy Republic Services (RSG) Now
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Republic Services, Inc. (RSG - Free Report) has performed well in the past year and has the potential to sustain the momentum. If you haven’t taken advantage of its share price appreciation yet, it’s time you add the stock to your portfolio.
Let’s look at the factors that make the stock an attractive pick.
An Outperformer: Shares of Republic Services have rallied 15.3% in the past year against a 30.1% fall of the industry it belongs to.
Image Source: Zacks Investment Research
Bullish Rank & VGM Score: Republic Services currently has a Zacks Rank #2 (Buy) and a VGM Score of A. Our research shows that stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 (Strong Buy) or 2, offer the best investment opportunities. Thus, RSG seems an appropriate investment proposition at the moment. You can see the complete list of today’s Zacks #1 Rank stocks here.
Northward Estimate Revisions: Five estimates for 2022 have moved north in the past 60 days versus no southward revision, indicating analysts’ confidence in the stock. The Zacks Consensus Estimate for 2022 earnings has moved 1.1% up in the past 60 days.
Positive Earnings Surprise History: Republic Services has an impressive earnings surprise history. RSG’s bottom line outpaced the Zacks Consensus Estimate in all the trailing four quarters, the average earnings surprise being 8.3%.
Strong Prospects: The Zacks Consensus Estimate for 2022 earnings is pegged at $4.67, suggesting growth of 12% from the year-ago reported figure. Moreover, earnings are expected to register 12% growth in 2023. RSG’s long-term expected earnings per share (EPS) growth rate is 10.5%.
Solid Driving Factors: We are impressed with Republic Services’ consistent efforts in rewarding its shareholders through dividend payments and share repurchases. In 2021, 2020 and 2019, RSG paid out $552.6 million, $522.5 million and $491.2 million as dividends, respectively, and repurchased shares worth $252.2 million, $98.8 million and $399.4 million each. Such moves underpin RSG’s commitment to create shareholder value and instill its confidence in its business. These initiatives also raise investors’ optimism on the stock and positively impact RSG’s earnings per share.
The waste management industry stands to benefit from the current scenario as proper disposal of used masks, gloves, suits, syringes and other medical equipment is of utmost importance to curb the spread of the coronavirus. Government initiatives as well as stringent rules and regulations to advance sustainable waste management mechanisms and put a check on illegal dumping are also expected to boost the industry. Rising environmental concerns, rapid industrialization, increased population and an expected increase in non-hazardous waste as a result of rapid economic growth should enhance business opportunities for waste management companies.
Growing adoption of recycling techniques, development of technologies and advanced waste collection solutions are key trends within the industry. Recycling remains a major growth area, with most industry players undertaking municipal solid waste and non-hazardous industrial waste recycling measures. Per a report from Allied Market Research Report, the global waste management market is expected to reach $2,483.0 billion by 2030 from $1,612.0 billion in 2020, witnessing a CAGR of 3.4% from 2021 to 2030. All these factors augur well for Republic Services.
Image: Shutterstock
Here's Why Investors Should Buy Republic Services (RSG) Now
Republic Services, Inc. (RSG - Free Report) has performed well in the past year and has the potential to sustain the momentum. If you haven’t taken advantage of its share price appreciation yet, it’s time you add the stock to your portfolio.
Let’s look at the factors that make the stock an attractive pick.
An Outperformer: Shares of Republic Services have rallied 15.3% in the past year against a 30.1% fall of the industry it belongs to.
Image Source: Zacks Investment Research
Bullish Rank & VGM Score: Republic Services currently has a Zacks Rank #2 (Buy) and a VGM Score of A. Our research shows that stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 (Strong Buy) or 2, offer the best investment opportunities. Thus, RSG seems an appropriate investment proposition at the moment. You can see the complete list of today’s Zacks #1 Rank stocks here.
Northward Estimate Revisions: Five estimates for 2022 have moved north in the past 60 days versus no southward revision, indicating analysts’ confidence in the stock. The Zacks Consensus Estimate for 2022 earnings has moved 1.1% up in the past 60 days.
Positive Earnings Surprise History: Republic Services has an impressive earnings surprise history. RSG’s bottom line outpaced the Zacks Consensus Estimate in all the trailing four quarters, the average earnings surprise being 8.3%.
Strong Prospects: The Zacks Consensus Estimate for 2022 earnings is pegged at $4.67, suggesting growth of 12% from the year-ago reported figure. Moreover, earnings are expected to register 12% growth in 2023. RSG’s long-term expected earnings per share (EPS) growth rate is 10.5%.
Solid Driving Factors: We are impressed with Republic Services’ consistent efforts in rewarding its shareholders through dividend payments and share repurchases. In 2021, 2020 and 2019, RSG paid out $552.6 million, $522.5 million and $491.2 million as dividends, respectively, and repurchased shares worth $252.2 million, $98.8 million and $399.4 million each. Such moves underpin RSG’s commitment to create shareholder value and instill its confidence in its business. These initiatives also raise investors’ optimism on the stock and positively impact RSG’s earnings per share.
The waste management industry stands to benefit from the current scenario as proper disposal of used masks, gloves, suits, syringes and other medical equipment is of utmost importance to curb the spread of the coronavirus. Government initiatives as well as stringent rules and regulations to advance sustainable waste management mechanisms and put a check on illegal dumping are also expected to boost the industry. Rising environmental concerns, rapid industrialization, increased population and an expected increase in non-hazardous waste as a result of rapid economic growth should enhance business opportunities for waste management companies.
Growing adoption of recycling techniques, development of technologies and advanced waste collection solutions are key trends within the industry. Recycling remains a major growth area, with most industry players undertaking municipal solid waste and non-hazardous industrial waste recycling measures. Per a report from Allied Market Research Report, the global waste management market is expected to reach $2,483.0 billion by 2030 from $1,612.0 billion in 2020, witnessing a CAGR of 3.4% from 2021 to 2030. All these factors augur well for Republic Services.
Other Stocks to Consider
Other stocks worth considering in the broader Zacks Business Services sector are Avis Budget Group, Inc. (CAR - Free Report) , Genpact Limited (G - Free Report) and CRA International, Inc. (CRAI - Free Report) .
Avis Budget sports a Zacks Rank #1 at present. CAR has a long-term earnings growth expectation of 19.4%.
Avis Budget delivered a trailing four-quarter earnings surprise of 102%, on average.
Genpact carries a Zacks Rank of 2 at present. G has a long-term earnings growth expectation of 12.3%.
Genpact delivered a trailing four-quarter earnings surprise of 13.3%, on average.
CRA International is currently Zacks #2 Ranked. CRAI has a long-term earnings growth expectation of 14.3%.
CRAI delivered a trailing four-quarter earnings surprise of 35.8%, on average.