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Reasons to Add Republic Services (RSG) to Your Portfolio Now
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Republic Services, Inc. (RSG - Free Report) is a waste management services provider that has performed well over the past year and holds the potential to increase its momentum in the near term. Hence, we believe that RSG makes for a strong investment pick at the moment.
What Makes RSG an Attractive Choice?
Price Performance: A glimpse of the company’s price trend reveals that the stock has performed impressively over the past year. Shares of Republic Services have returned 26% compared with the industry’s 16% growth.
Solid Rank: Currently, Republic Services has a Zacks Rank #2 (Buy) and a Value Growth Momentum Score (VGM Score) of B. Our research shows that stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 (Strong Buy) or 2, offer the best investment opportunities. Thus, the company is a compelling investment proposition at the moment. You can see the complete list of today’s Zacks #1 Rank stocks here.
Northward Estimate Revisions: Seven estimates for 2023 moved north in the past 60 days versus no southward revision, reflecting analysts’ confidence in the stock. The Zacks Consensus Estimate for RSG’s fiscal 2023 earnings has moved up 1.7% in the past 60 days.
Strong Growth Prospects: The Zacks Consensus Estimate for RSG’s 2023 earnings per share is pegged at $5.47, implying year-over-year growth of 11%. The company’s earnings are expected to register 8.5% year-over-year growth in 2024.
Positive Earnings Surprise History: Republic Services has an impressive earnings surprise history. The company’s earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 8.9%.
Growth Factors: As 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’s top line increased 4.6% year over year in the third quarter of 2023.
RSG 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.
Commitment to shareholder returns makes RSG a reliable way for investors to compound wealth over the long term. The company paid $592.9 million, $552.6 million and $522.5 million in 2022, 2021 and 2020, respectively, in dividends and repurchased shares worth $203.5 million, $252.2 million and $98.8 million.
Other Stocks to Consider
A couple of other top-ranked stocks from the same industry have been discussed below.
Rollins (ROL - Free Report) currently carries a Zacks Rank #2. 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%.
ROL has an impressive earnings surprise history, wherein the bottom line beat the consensus mark in three of the trailing four quarters and met the same once, delivering an average surprise of 7.2%.
FTI Consulting (FCN - Free Report) also carries a Zacks Rank #2 at present. 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, wherein the bottom line beat the consensus mark in three of the trailing four quarters and missed the same once, delivering an average surprise of 8.5%.
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Reasons to Add Republic Services (RSG) to Your Portfolio Now
Republic Services, Inc. (RSG - Free Report) is a waste management services provider that has performed well over the past year and holds the potential to increase its momentum in the near term. Hence, we believe that RSG makes for a strong investment pick at the moment.
What Makes RSG an Attractive Choice?
Price Performance: A glimpse of the company’s price trend reveals that the stock has performed impressively over the past year. Shares of Republic Services have returned 26% compared with the industry’s 16% growth.
Republic Services, Inc. Price
Republic Services, Inc. price | Republic Services, Inc. Quote
Solid Rank: Currently, Republic Services has a Zacks Rank #2 (Buy) and a Value Growth Momentum Score (VGM Score) of B. Our research shows that stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 (Strong Buy) or 2, offer the best investment opportunities. Thus, the company is a compelling investment proposition at the moment. You can see the complete list of today’s Zacks #1 Rank stocks here.
Northward Estimate Revisions: Seven estimates for 2023 moved north in the past 60 days versus no southward revision, reflecting analysts’ confidence in the stock. The Zacks Consensus Estimate for RSG’s fiscal 2023 earnings has moved up 1.7% in the past 60 days.
Strong Growth Prospects: The Zacks Consensus Estimate for RSG’s 2023 earnings per share is pegged at $5.47, implying year-over-year growth of 11%. The company’s earnings are expected to register 8.5% year-over-year growth in 2024.
Positive Earnings Surprise History: Republic Services has an impressive earnings surprise history. The company’s earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 8.9%.
Growth Factors: As 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’s top line increased 4.6% year over year in the third quarter of 2023.
RSG 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.
Commitment to shareholder returns makes RSG a reliable way for investors to compound wealth over the long term. The company paid $592.9 million, $552.6 million and $522.5 million in 2022, 2021 and 2020, respectively, in dividends and repurchased shares worth $203.5 million, $252.2 million and $98.8 million.
Other Stocks to Consider
A couple of other top-ranked stocks from the same industry have been discussed below.
Rollins (ROL - Free Report) currently carries a Zacks Rank #2. 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%.
ROL has an impressive earnings surprise history, wherein the bottom line beat the consensus mark in three of the trailing four quarters and met the same once, delivering an average surprise of 7.2%.
FTI Consulting (FCN - Free Report) also carries a Zacks Rank #2 at present. 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, wherein the bottom line beat the consensus mark in three of the trailing four quarters and missed the same once, delivering an average surprise of 8.5%.