Republic Services Shows Strong Growth Despite Market Challenges

Phoenix, Arizona-based Republic Services, Inc. (RSG) is a key player in the environmental services sector in the United States and Canada. With a market capitalization of $73.1 billion, the company ranks as the second-largest provider of non-hazardous solid waste collection, transfer, disposal, recycling, and energy services in the U.S.

As a company valued at over $10 billion, RSG qualifies as a “large-cap stock.” Its substantial market cap reflects the company’s expansive operations and significant presence in the waste management industry, underscoring its strong standing in the market.

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On March 4, Republic Services reached an all-time high of $240.95 and is currently trading 2.8% below that peak. Over the past three months, RSG shares have increased by 8.1%, notably outperforming the S&P 500 Index, which declined by 5.3% during the same period.

Looking at a broader timeframe, RSG demonstrates a robust performance. The stock has surged 27.3% over the past 52 weeks and 15.5% over the last six months, significantly outpacing SPX’s gains of 11.9% and 6.7%, respectively, over those periods.

This bullish trend is further supported by RSG’s trading patterns; it has consistently remained above its 200-day moving average over the past year and has been above its 50-day moving average since mid-January.

Shares of Republic Services rose 3.1% in the trading session following the release of its strong Q4 results on February 13. The company reported effective execution marked by solid topline growth and margin expansion. In that quarter, Republic Services experienced both organic and inorganic revenue increases, leading to a 5.6% year-over-year rise in total revenue to more than $4 billion. Moreover, while operating costs and selling, general, and administrative expenses saw only modest increases, the adjusted net income grew significantly by 11.4% year-over-year to $497 million. Its adjusted earnings per share (EPS) of $1.58 exceeded analysts’ expectations by 15.3%, enhancing investor sentiment.

Additionally, Republic Services surpassed the industry leader Waste Management, Inc. (WM), which reported 12.1% gains over the last six months and 10.8% over the past year.

Among the 21 analysts covering RSG, the consensus rating stands at “Moderate Buy.” The mean price target for RSG is $246.05, suggesting a potential 5.1% upside from current price levels.

On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.