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Reasons Why You Should Hold Republic Services Stock Now

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Key Takeaways

  • RSG benefits from rapid urbanization in U.S., lifting waste volumes and supporting steady revenue growth.
  • RSG is expanding Polymer Centers, RNG and energy projects, and new recycling capacity.
  • RSG is electrifying its fleet and returning cash via dividends and buybacks.

Republic Services’ (RSG - Free Report) growth is fueled by North American urbanization, zero-waste adoption and industrial expansion. Investments in polymer recycling, renewable natural gas and fleet electrification strengthen its sustainability leadership. Ongoing dividends and share buybacks consistently enhance shareholder value and reinforce investor confidence.

The company’s fourth-quarter 2025 earnings are expected to increase 2.5% year over year. The company’s 2025 and 2026 earnings are expected to rise 6.5% and 6%, respectively. Revenues are expected to grow 4% in both 2025 and 2026.

Factors That Bode Well for RSG

RSG’s revenue growth is driven by rapid urbanization in North America, which is resulting in increased waste generation. Favorable market forces like the rising adoption of zero-waste initiatives, a surge in urban population across the United States and Canada, and industrial growth across the region increase the demand for the company's offerings.

RSG’s progress in its Polymer Centers and Blue Polymers joint venture facilities, promoting bottle-to-bottle plastics circularity, enable it to meet growing demand for recycled material. Commercial production began at the Indianapolis Polymer Center, co-located with a Blue Polymers facility, in July 2025. The company is also advancing renewable natural gas (RNG) and six other energy projects with its partners.

The company’s fleet electrification strategy, which replaces gasoline or diesel vehicles with electric vehicles (EVs), significantly lowers its environmental impact by reducing fleet emissions. It expects to have more than 150 EVs by the end of 2025, with 32 facilities having commercial-scale EV charging infrastructure.

Republic Services consistently rewards shareholders through dividends and share repurchases.In 2022, 2023 and 2024, the company paid $592.9 million, $650 million and $687 million in dividends while repurchasing shares worth $203.5 million, $261.8 million and $482 million, respectively. These boost shareholder value and instill investors’ confidence.

Key Risk Factor

RSG had a current ratio of 0.58, lower than the industry's average of 0.98 in the last quarter. A current ratio below 1 often suggests that a company may not be well-positioned to meet its short-term obligations.

Zacks Rank & Stocks to Consider

RSG currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here

A couple of better-ranked stocks in the industry are Xylem (XYL - Free Report)  and H2O America (HTO - Free Report) .

Xylem carries a Zacks Rank #2 (Buy) at present. XYL has a long-term earnings growth expectation of 12.7%. The company delivered an average trailing four-quarter earnings surprise of 8.7%.

H2O America also holds a Zacks Rank of 2 at present, with a long-term earnings growth expectation of 6.5%. HTO delivered a trailing four-quarter earnings surprise of 23.4% on average.


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