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Republic Services (RSG) Rises 44% in a Year: Here's How

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Republic Services, Inc. (RSG - Free Report) has had an impressive run over the past year. The stock has gained 43.5%, outperforming the 32% growth of the industry it belongs to and the 32.9% rise of the Zacks S&P 500 composite.

Reasons for the Upside

Republic Services delivered better-than-expected earnings and revenue performance in the past four quarters. The company continues to benefit from increasing environmental concerns, rapid industrialization and an increase in population.

The demand environment for this leading waste disposal companyis currently good across all its services. Revenues increased 10.8% year over year in 2023. Services — Collection, Transfer, Landfill and Environmental Solutions — registered 9.7%, 7.9%, 7.6% and 34.8% growth, respectively.

RSG is focused on increasing its operational efficiency and reducing fleet operating costs by shifting to compressed natural gas (“CNG”) collection vehicles. In 2023, around 20% of the company’s recycling and solid waste collection fleet operated on CNG and 13% 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. In 2023, 2022 and 2021, it paid $638.1 million, $592.9 million and $552.6 million in dividends and repurchased shares worth $261.8 million, $203.5 million and $252.2 million, respectively.

Zacks Rank and Stocks to Consider

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

Some better-ranked stocks in the broader Zacks Business Services sector are Booz Allen Hamilton (BAH - Free Report) and AppLovin (APP - Free Report) .

Booz Allen Hamilton sports a Zacks Rank #1 (Strong Buy) at present. BAH has a long-term earnings growth expectation of 12.6%. You can see the complete list of today’s Zacks #1 Rank stocks here.

BAH delivered a trailing four-quarter earnings surprise of 12.7%, on average.

AppLovin sports a Zacks Rank #1 at present. APP has a long-term earnings growth expectation of 20%.

APP delivered a trailing four-quarter earnings surprise of 26.5%, on average.

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