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Here's How Republic Services (RSG) Has Gained 10.5% Year to Date
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Republic Services, Inc. (RSG - Free Report) has gained 10.5% in the year-to-date period, outperforming the 2.4% growth of the industry while lagging the S&P 500 composite’s 13% growth, respectively.
Reasons Behind the Rally
Republic Services, a prominent environmental services leader, is actively pursuing strategic collaborations and acquisitions. In partnership with Ravago, the company has established Blue Polymers, LLC, which is aimed at promoting plastic industry circularity. Blue Polymers is developing facilities for 100% post-consumer recycled products and hence, catering to the rising demand for eco-friendly solutions among plastic manufacturers.
Additionally, Republic Services has finalized the acquisition of GFL Environmental's operations in Colorado and New Mexico, which encompass recycling, collection, and disposal assets in multiple markets. Furthermore, Republic Services is expanding its organics recycling in California by acquiring North State Bioenergy, an anaerobic digestion facility near Sacramento. This move aligns with California's waste diversion policies and supports Republic's customers in meeting its sustainability objectives. These strategic endeavors highlight Republic Services' commitment to environmental innovation and sustainable practices.
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.
Republic Services demonstrates its dedication to enhancing shareholder value by consistently distributing dividends and repurchasing shares. In 2022, 2021, and 2020, the company allocated $592.9 million, $552.6 million, and $522.5 million toward dividends, alongside share buybacks of $203.5 million, $252.2 million, and $98.8 million, respectively. These actions underscore the company's confidence in its operations, bolster investor trust and positively influence earnings per share.
The following better-ranked stocks from the Business Services sector are worth consideration:
Verisk Analytics (VRSK - Free Report) beat the Zacks Consensus Estimate in three of the last four quarters and matched on one instance, with an average surprise of 9.9% The consensus mark for 2023 revenues is pegged at $2.66 billion, suggesting a decrease of 8.2% from the year-ago figure. The consensus estimate for 2023 earnings is pegged at $5.71 per share, indicating 14% rise from the year-ago figure. VRSK currently carries a Zacks Rank #2(Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Automatic Data (ADP - Free Report) currently has a Zacks Rank of 2. It outpaced the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 3.1%. The consensus estimate for fiscal 2023 revenues and earnings implies growth of 8.4% and 11.1%, respectively.
Broadridge (BR - Free Report) currently carries a Zacks Rank of 2. It surpassed the Zacks Consensus Estimate in two of the trailing four quarters, missed once and matched on one instance, the average surprise being 0.5%. The consensus estimate for fiscal 2024 revenues and earnings predicts growth of 7.2% and 8.8%, respectively.
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Here's How Republic Services (RSG) Has Gained 10.5% Year to Date
Republic Services, Inc. (RSG - Free Report) has gained 10.5% in the year-to-date period, outperforming the 2.4% growth of the industry while lagging the S&P 500 composite’s 13% growth, respectively.
Reasons Behind the Rally
Republic Services, a prominent environmental services leader, is actively pursuing strategic collaborations and acquisitions. In partnership with Ravago, the company has established Blue Polymers, LLC, which is aimed at promoting plastic industry circularity. Blue Polymers is developing facilities for 100% post-consumer recycled products and hence, catering to the rising demand for eco-friendly solutions among plastic manufacturers.
Additionally, Republic Services has finalized the acquisition of GFL Environmental's operations in Colorado and New Mexico, which encompass recycling, collection, and disposal assets in multiple markets. Furthermore, Republic Services is expanding its organics recycling in California by acquiring North State Bioenergy, an anaerobic digestion facility near Sacramento. This move aligns with California's waste diversion policies and supports Republic's customers in meeting its sustainability objectives. These strategic endeavors highlight Republic Services' commitment to environmental innovation and sustainable practices.
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.
Republic Services demonstrates its dedication to enhancing shareholder value by consistently distributing dividends and repurchasing shares. In 2022, 2021, and 2020, the company allocated $592.9 million, $552.6 million, and $522.5 million toward dividends, alongside share buybacks of $203.5 million, $252.2 million, and $98.8 million, respectively. These actions underscore the company's confidence in its operations, bolster investor trust and positively influence earnings per share.
Republic Services, Inc. Price
Republic Services, Inc. price | Republic Services, Inc. Quote
Zacks Rank & Stocks to Consider
RSG currently carries a Zacks Rank #3 (Hold).
The following better-ranked stocks from the Business Services sector are worth consideration:
Verisk Analytics (VRSK - Free Report) beat the Zacks Consensus Estimate in three of the last four quarters and matched on one instance, with an average surprise of 9.9% The consensus mark for 2023 revenues is pegged at $2.66 billion, suggesting a decrease of 8.2% from the year-ago figure. The consensus estimate for 2023 earnings is pegged at $5.71 per share, indicating 14% rise from the year-ago figure. VRSK currently carries a Zacks Rank #2(Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Automatic Data (ADP - Free Report) currently has a Zacks Rank of 2. It outpaced the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 3.1%. The consensus estimate for fiscal 2023 revenues and earnings implies growth of 8.4% and 11.1%, respectively.
Broadridge (BR - Free Report) currently carries a Zacks Rank of 2. It surpassed the Zacks Consensus Estimate in two of the trailing four quarters, missed once and matched on one instance, the average surprise being 0.5%. The consensus estimate for fiscal 2024 revenues and earnings predicts growth of 7.2% and 8.8%, respectively.