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Stericycle (SRCL) Stock Rises 13% in a Month: Here's How

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Stericycle, Inc. (SRCL - Free Report) shares have had an impressive run in the past month. The stock has gained 13.1%, significantly outperforming the 2.7% increase of the industry it belongs to and the 5.3% rise 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 scheduled basis, allowing the company to achieve a steady flow of revenues. It has strong customer relationships, most of which include long-term contracts ranging from three to five years. This enables it to maintain a revenue retention rate of around 90%.

Stericycle has progressed well with its key objectives of the program, including 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.

SRCL is likely to benefit from ongoing trends, such as increasing environmental concerns, rapid industrialization, an improvement in population and active government measures to reduce illegal dumping.

Zacks Rank and Stocks to Consider

Stericycle currently carries a Zacks Rank #3 (Hold).

Here are some better-ranked stocks from the broader Business Service sector.

Rollins (ROL - Free Report) currently carries a Zacks Rank #2 (Buy). For the fourth quarter of 2023, the Zacks Consensus Estimate for earnings is pegged at 20 cents per share, indicating year-over-year growth of 17.7%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

ROL has an impressive earnings surprise history, beating the consensus mark in three of the four trailing quarters and matching once, the average surprise being 7.2%.

FTI Consulting (FCN - Free Report) also carries a Zacks Rank of 2. The consensus mark for fourth-quarter 2023 earnings is pegged at $1.57 per share, indicating 3.3% year-over-year growth.

FCN has an impressive earnings surprise history, beating the consensus mark in three of the four trailing quarters and missing once, the average surprise being 8.5%.

See More Zacks Research for These Tickers

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Stericycle, Inc. (SRCL) - free report >>

FTI Consulting, Inc. (FCN) - free report >>

Rollins, Inc. (ROL) - free report >>

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