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Stericycle (SRCL) Retains Competitive Edge with Core Focus
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On Jul 5, we issued an updated research report on waste management firm, Stericycle, Inc. (SRCL - Free Report) .
Stericycle’s network is the largest in the industry and provides it with routing efficiencies for its vehicles from the customer sites to the collection and processing facilities. This network is difficult to replicate and the lower costs further allow Stericycle to compete effectively on both service and price perspectives. Collection and transportation of medical waste account for a largest percentage of Stericycle’s operating costs and thus, gaining efficiencies in these is critical.
A significant portion of Stericycle’s historical growth was due to the successful integration of acquisitions in both domestic and international markets. The company is continuously on the lookout for strategic acquisitions that will grow its market share and expand the geographic base. During the first quarter of 2017, the company completed 13 acquisitions globally, eight of which were in the domestic market.
Moving forward, the acquisition pool of Stericycle remains robust in multiple geographies and lines of business. International growth rates are expected to accelerate due to increasing customer adoption of multiple services and expansion into new lines of business. The inorganic strategy increases Stericycle’s customer base by providing a long-term growth platform for selling multiple services. Whether the customer is a large hospital system or a retail chain, the company provides services to help them improve their operations and achieve goals. As customers adopt these multiple services, they can almost triple their revenues in the long run. This augurs well for the long-term growth prospects of the company.
Stericycle currently has a Zacks Rank #2 (Buy) and a Value Growth Momentum Score (VGM Score) of ‘A’. Our research shows that stocks with a VGM Score of ‘A’ or ‘B’ combined with a Zacks Rank #1 (Strong Buy) or #2, offer the best investment opportunities in the long term. However, Stericycle’s shares have lagged the Zacks categorized Waste Removal Services industry with an average year-to-date decline of 0.8% as against an 8% gain for the latter.
Advanced Disposal Services topped earnings estimates thrice in the trailing four quarters with a stellar positive surprise of 227.8%.
Exponent has a long-term earnings growth expectation of 12%. It topped estimates twice in the trailing four quarters with an average positive earnings surprise of 1.1%.
Gartner has a long-term earnings growth expectation of 17.3%. It surpassed estimates thrice in the trailing four quarters with an average positive earnings surprise of 4.6%.
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Stericycle (SRCL) Retains Competitive Edge with Core Focus
On Jul 5, we issued an updated research report on waste management firm, Stericycle, Inc. (SRCL - Free Report) .
Stericycle’s network is the largest in the industry and provides it with routing efficiencies for its vehicles from the customer sites to the collection and processing facilities. This network is difficult to replicate and the lower costs further allow Stericycle to compete effectively on both service and price perspectives. Collection and transportation of medical waste account for a largest percentage of Stericycle’s operating costs and thus, gaining efficiencies in these is critical.
A significant portion of Stericycle’s historical growth was due to the successful integration of acquisitions in both domestic and international markets. The company is continuously on the lookout for strategic acquisitions that will grow its market share and expand the geographic base. During the first quarter of 2017, the company completed 13 acquisitions globally, eight of which were in the domestic market.
Moving forward, the acquisition pool of Stericycle remains robust in multiple geographies and lines of business. International growth rates are expected to accelerate due to increasing customer adoption of multiple services and expansion into new lines of business. The inorganic strategy increases Stericycle’s customer base by providing a long-term growth platform for selling multiple services. Whether the customer is a large hospital system or a retail chain, the company provides services to help them improve their operations and achieve goals. As customers adopt these multiple services, they can almost triple their revenues in the long run. This augurs well for the long-term growth prospects of the company.
Stericycle currently has a Zacks Rank #2 (Buy) and a Value Growth Momentum Score (VGM Score) of ‘A’. Our research shows that stocks with a VGM Score of ‘A’ or ‘B’ combined with a Zacks Rank #1 (Strong Buy) or #2, offer the best investment opportunities in the long term. However, Stericycle’s shares have lagged the Zacks categorized Waste Removal Services industry with an average year-to-date decline of 0.8% as against an 8% gain for the latter.
Some other stocks worth considering in the broader industry include Advanced Disposal Services, Inc. , Exponent, Inc. (EXPO - Free Report) and Gartner, Inc. (IT - Free Report) , each carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Advanced Disposal Services topped earnings estimates thrice in the trailing four quarters with a stellar positive surprise of 227.8%.
Exponent has a long-term earnings growth expectation of 12%. It topped estimates twice in the trailing four quarters with an average positive earnings surprise of 1.1%.
Gartner has a long-term earnings growth expectation of 17.3%. It surpassed estimates thrice in the trailing four quarters with an average positive earnings surprise of 4.6%.
5 Trades Could Profit "Big-League" from Trump Policies
If the stocks above spark your interest, wait until you look into companies primed to make substantial gains from Washington's changing course.
Today Zacks reveals 5 tickers that could benefit from new trends like streamlined drug approvals, tariffs, lower taxes, higher interest rates, and spending surges in defense and infrastructure. See these buy recommendations now >>