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Republic Services (RSG) Appreciates 6% in 3 Months: Here's How

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Shares of Republic Services, Inc. (RSG - Free Report) have gained 6% in the past three months, primarily on operational efficiency and investor-friendly steps.

Reasons for the Upside

Being a leading waste disposal company, Republic Services continues to benefit from increasing environmental concerns, rapid industrialization, an increase in population and active government measures to reduce illegal dumping.

The company is focused on increasing its operational efficiency and reducing fleet operating costs by shifting to compressed natural gas (CNG) collection vehicles. In 2022, around 20% of the company’s recycling and solid waste collection fleet operated on CNG and 17% of its replacement recycling and solid waste vehicle purchases were CNG vehicles.

Republic Services puts consistent efforts into rewarding 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.

Driven by the above tailwinds, the Zacks Consensus Estimate for current-year earnings has moved up 2.2% to $4.18 per share in the past 60 days.

The company’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, delivering an average earnings surprise of 10.5%.

Zacks Rank and Stocks to Consider

Republic Services currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the Zacks Business Services sector are ICF International (ICFI - Free Report) , Maximus (MMS - Free Report) and Gartner (IT - Free Report) .

For first-quarter 2023, ICF International’s earnings are expected to increase 7.6% from the year-ago quarter’s $1.41 per share. In 2023, the company’s bottom line is expected to increase 9.2% on a year-over-year basis.

The Zacks Consensus Estimate for the company’s first-quarter 2023 earnings is pegged at $1.41 per share, which has been revised 6% upward in the past 60 days. The consensus estimate for ICFI’s full-year earnings is pegged at $6.3 per share, which has been revised upward by 7.3% in the past 60 days. The company currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Maximus’s first-quarter 2023 and full-year earnings are pegged at 81 cents per share and $4.15, respectively. The consensus mark for the first quarter has been revised 12% downward in the past 60 days. The consensus estimate for full-year 2023 has been revised 7.2% upward in the past 60 days. The company currently sports a Zacks Rank #1.

The Zacks Consensus Estimate for Gartner’s first-quarter 2023 earnings is pegged at $2.04 per share. The bottom line has been revised 3% upward in the past 60 days. The consensus estimate for full-year 2023 is pegged at $9.49 per share, which has been revised slightly upward in the past 60 days. The company currently carries a Zacks Rank #2 (Buy).

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