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Stericycle (SRCL) Gains 19% in the Past 3 Months: Here's How
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Stericycle, Inc. (SRCL - Free Report) shares have had an impressive run on the bourses in the past three months. The stock has gained 18.8% compared with the 1.7% decline of the industry it belongs to and the 4.6% rally of the Zacks S&P 500 composite.
Reasons for the Upside
The services that Stericycle provides usually cannot be delayed and are required on a routine and scheduled basis. This helps the company to achieve a steady flow of revenues. The company has strong customer relationships, most of which include long-term contracts ranging from three to five years. This enables the company to maintain a revenue retention rate of around 90%.
Stericycle has progressed well with its comprehensive multiyear Business Transformation initiative, which is aimed at improving long-term operational and financial performance. Initiated in 2017, the five key objectives of the program include improving the quality of revenues; driving operational efficiency through work measurement, asset optimization, technology, strategic sourcing; portfolio rationalization through divestitures; debt reduction and leverage improvement; and ERP implementation.
Favorable Estimate Revisions
The direction of estimate revisions serves as an important pointer, when it comes to the price of a stock. One estimate for 2023 has moved north over the past 30 days versus one southward revision. Over the same period, the Zacks Consensus Estimate for 2023 earnings has increased 1.3%.
Zacks Rank and Stocks to Consider
Stericycle currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Business Services sector are Booz Allen Hamilton Holding Corporation (BAH - Free Report) and CRA International, Inc. (CRAI - Free Report) .
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Stericycle (SRCL) Gains 19% in the Past 3 Months: Here's How
Stericycle, Inc. (SRCL - Free Report) shares have had an impressive run on the bourses in the past three months. The stock has gained 18.8% compared with the 1.7% decline of the industry it belongs to and the 4.6% rally of the Zacks S&P 500 composite.
Reasons for the Upside
The services that Stericycle provides usually cannot be delayed and are required on a routine and scheduled basis. This helps the company to achieve a steady flow of revenues. The company has strong customer relationships, most of which include long-term contracts ranging from three to five years. This enables the company to maintain a revenue retention rate of around 90%.
Stericycle, Inc. Revenue (TTM)
Stericycle, Inc. revenue-ttm | Stericycle, Inc. Quote
Stericycle has progressed well with its comprehensive multiyear Business Transformation initiative, which is aimed at improving long-term operational and financial performance. Initiated in 2017, the five key objectives of the program include improving the quality of revenues; driving operational efficiency through work measurement, asset optimization, technology, strategic sourcing; portfolio rationalization through divestitures; debt reduction and leverage improvement; and ERP implementation.
Favorable Estimate Revisions
The direction of estimate revisions serves as an important pointer, when it comes to the price of a stock. One estimate for 2023 has moved north over the past 30 days versus one southward revision. Over the same period, the Zacks Consensus Estimate for 2023 earnings has increased 1.3%.
Zacks Rank and Stocks to Consider
Stericycle currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Business Services sector are Booz Allen Hamilton Holding Corporation (BAH - Free Report) and CRA International, Inc. (CRAI - Free Report) .
Booz Allen has a long-term earnings growth expectation of 8.9%. Presently, BAH carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Booz Allen delivered a trailing four-quarter earnings surprise of 8.8%, on average.
CRA International carries a Zacks Rank of 2 at present. CRAI has a long-term earnings growth expectation of 14.3%.
CRA International delivered a trailing four-quarter earnings surprise of 25.7%, on average.