Stericycle, Inc. SRCL has been on a roll over the past six months, experiencing an impressive 10.2% surge. This growth has outpaced the 8.7% rally of the industry and the 7.4% rise of the Zacks S&P 500 composite.
Reasons Behind the Upswing
Stericycle’s consistent provision of essential services, which cannot be deferred, has been a key contributing factor to its sustained growth. The company’s strong customer relationships, bolstered by long-term contracts spanning three to five years, have enabled it to maintain an impressive revenue retention rate of approximately 90%. Additionally, the strategic acquisition of a Midwest-regulated waste business in 2021 has further expanded Stericycle’s North American customer base.
Stericycle, Inc. Price
Stericycle is poised to benefit from ongoing trends, such as heightened environmental concerns, rapid industrialization, population growth, and proactive government measures aimed at curbing illegal waste disposal.
The company has made significant strides in achieving its key program objectives, including enhancing revenue quality, driving operational efficiency through work measurement and technological innovations, optimizing assets, strategic sourcing, portfolio rationalization through divestitures, debt reduction, leverage improvement, and the implementation of an ERP system.
Assessment of Zacks Rank and Recommended Stocks
Presently, Stericycle holds a Zacks Rank #3 (hold).
Other stocks worth considering in the broader Business Service sector include the following:
Gartner IT: The Zacks Consensus Estimate for Gartner’s 2023 revenues points to a 7.9% rise from the previous year, while earnings are anticipated to decline by 1.9%. The company has surpassed the consensus estimate in each of the trailing four quarters, with an average surprise of 34.4%. Currently, it holds a Zacks Rank of 2 (Buy).
Broadridge Financial Solutions BR: The Zacks Consensus Estimate for Broadridge’s fiscal 2024 revenues indicates a 7.7% increase from the previous year, with anticipated earnings growth of 10.1%. The company has outperformed the consensus estimate in three of the last four quarters, with an average surprise of 5.4%. BR currently holds a Zacks Rank of 2.
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Broadridge Financial Solutions, Inc. (BR) : Free Stock Analysis Report
Stericycle, Inc. (SRCL) : Free Stock Analysis Report
Gartner, Inc. (IT) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
