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Here's Why You Should Retain RSG Stock in Your Portfolio Now
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Key Takeaways
Republic Services stock rose 4.9% in 3 months, beating industry decline and S&P 500 drop.
RSG benefits from rising waste volumes, boosting collection demand and pricing power.
Strong dividends and buybacks persist, though a low liquidity ratio signals short-term risk.
Republic Services, Inc. (RSG - Free Report) stock moved up over the past three months. Shares of the company have gained 4.9% against a 3.8% dip of the industry it belongs to and the 7.1% decline of the Zacks S&P 500 composite.
The Zacks Consensus Estimate for 2026 revenues is expected to improve 3.1% year over year, and the same for 2027 is anticipated to gain 5.6%. The consensus mark for EPS is anticipated to increase 2.9% in 2026 and 10.8% in 2027.
Factors That Augur Well for RSG
Per Mordor Intelligence, the North America Solid Waste Management market is projected to increase at a CAGR of 3% from 2026 to 2031. The expected rise in waste generation can be attributed to the rapid urbanization in North America. Urban population expansion across the United States and Canada is expected to add to the surging waste production. Furthermore, the rapid adoption of zero-waste initiatives and industrial growth across the region are contributing to a rise in commercial and industrial waste.
Over the past year, nearly 70% of Republic Services’ revenues have come from its collection segment. The increase in solid waste will lead to more frequent collections, and higher demand will make customers willing to pay more for disposal. This could allow the company to raise subscription fees and increase its revenues.
Republic Services consistently rewards its shareholders through dividend payments and share repurchases. The consistency has persisted despite the fluctuations in its cash position, underscoring its dedication to returning value to investors.
In 2022, 2023, 2024 and 2025, the company paid $592.9 million, $650 million, $687 million and $738 million in dividends and repurchased shares worth $203.5 million, $261.8 million, $482 million and $870 million, respectively. These shareholder-friendly policies are attractive, resulting in a positive impact on the bottom line.
Risks Faced by Republic Services
The solid waste industry is highly competitive, with large national waste management companies, multiple municipalities and several other regional and smaller companies. Municipalities are particularly a threat to the company’s market share as they maintain their own waste collection and disposal activities and benefit from the availability of tax revenues and tax-exempt financing. It could compel the company to invest rapidly, resulting in creating imbalances in growth and profitability.
Republic Services' current ratio (a measure of liquidity) at the end of the fourth quarter of 2025 was 0.64. The metric is lower than the industry average of 1. A current ratio of less than 1 implies that the company might face trouble in covering its short-term obligations.
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Republic Services’ Zacks Rank & Stocks to Consider
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Here's Why You Should Retain RSG Stock in Your Portfolio Now
Key Takeaways
Republic Services, Inc. (RSG - Free Report) stock moved up over the past three months. Shares of the company have gained 4.9% against a 3.8% dip of the industry it belongs to and the 7.1% decline of the Zacks S&P 500 composite.
The Zacks Consensus Estimate for 2026 revenues is expected to improve 3.1% year over year, and the same for 2027 is anticipated to gain 5.6%. The consensus mark for EPS is anticipated to increase 2.9% in 2026 and 10.8% in 2027.
Factors That Augur Well for RSG
Per Mordor Intelligence, the North America Solid Waste Management market is projected to increase at a CAGR of 3% from 2026 to 2031. The expected rise in waste generation can be attributed to the rapid urbanization in North America. Urban population expansion across the United States and Canada is expected to add to the surging waste production. Furthermore, the rapid adoption of zero-waste initiatives and industrial growth across the region are contributing to a rise in commercial and industrial waste.
Over the past year, nearly 70% of Republic Services’ revenues have come from its collection segment. The increase in solid waste will lead to more frequent collections, and higher demand will make customers willing to pay more for disposal. This could allow the company to raise subscription fees and increase its revenues.
Republic Services consistently rewards its shareholders through dividend payments and share repurchases. The consistency has persisted despite the fluctuations in its cash position, underscoring its dedication to returning value to investors.
In 2022, 2023, 2024 and 2025, the company paid $592.9 million, $650 million, $687 million and $738 million in dividends and repurchased shares worth $203.5 million, $261.8 million, $482 million and $870 million, respectively. These shareholder-friendly policies are attractive, resulting in a positive impact on the bottom line.
Risks Faced by Republic Services
The solid waste industry is highly competitive, with large national waste management companies, multiple municipalities and several other regional and smaller companies. Municipalities are particularly a threat to the company’s market share as they maintain their own waste collection and disposal activities and benefit from the availability of tax revenues and tax-exempt financing. It could compel the company to invest rapidly, resulting in creating imbalances in growth and profitability.
Republic Services' current ratio (a measure of liquidity) at the end of the fourth quarter of 2025 was 0.64. The metric is lower than the industry average of 1. A current ratio of less than 1 implies that the company might face trouble in covering its short-term obligations.
Republic Services’ Zacks Rank & Stocks to Consider
RSG carries a Zacks Rank #3 (Hold) at present.
Some better-ranked stocks from the broader Zacks Business Services sector are Amadeus IT Group (AMADY - Free Report) and Booz Allen Hamilton (BAH - Free Report) .
Amadeus IT Group carries a Zacks Rank of 2 (Buy) at present. It has a long-term (next five years) earnings growth expectation of 6%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
AMADY delivered a trailing four-quarter earnings surprise of 1.5%, on average.
Booz Allen Hamilton has a Zacks Rank of 2 at present. It has a long-term earnings growth expectation of 2.8%.
BAH delivered a trailing four-quarter earnings surprise of 10.8%, on average.