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Stericycle, Inc. (SRCL) - free report >>
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Stericycle, Inc. (SRCL) - free report >>
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Here's Why You Should Hold Stericycle (SRCL) Stock for Now
Stericycle, Inc. (SRCL - Free Report) has had a decent run over the past three months, gaining 3%.
The company is currently benefiting from the essentiality of its services and strong customer relationships. It has an expected long-term earnings per share (three to five years) growth rate of 8%.
Stericycle, Inc. Price
Stericycle, Inc. price | Stericycle, Inc. Quote
Factors Favoring the Company
The services that Stericycle provides cannot usually be delayed and are required on a routine and scheduled basis. This helps it to achieve a steady flow of revenues. The company has strong customer relationships, boasting long-term contracts ranging from three to five years.
Stericycle continues to focus on improving the quality of revenues, driving operational efficiency through modernization and innovation, portfolio optimization, debt reduction and leverage improvement and ERP implementation.
Being a leading player in the waste management industry, Stericycle is likely to benefit from ongoing trends such as increasing environmental concerns, rapid industrialization, increase in population and active government measures to reduce illegal dumping.
Some Risks
Stericycle’s current ratio (a measure of liquidity) stood at 0.85 at the end of second-quarter 2023, lower than the 0.97 recorded at the end of the prior quarter and the prior-year quarter’s 0.96. A decline in the current ratio indicates that the company may face problems meeting its short-term obligations.
Zacks Rank and Stocks to Consider
Stericycle currently carries a Zacks Rank #3 (Hold).
Investors interested in the broader Zacks Business Services sector can consider better-ranked stocks like Verisk Analytics (VRSK - Free Report) and ICF International (ICFI - Free Report) .
Verisk currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The company has a trailing four-quarter earnings surprise of 9.9%, on average. VRSK shares have gained 7.4% in the past three months.
ICF International carries a Zacks Rank #2 and a VGM Score of A. The company has a trailing four-quarter earnings surprise of 7%, on average. ICFI shares have gained 13.6% in the past three months.