HomeMost PopularInvestingAn In-Depth Look at Stericycle's (SRCL) 10% Surge in the Last 3...

An In-Depth Look at Stericycle’s (SRCL) 10% Surge in the Last 3 Months

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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, 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.

Seeking Stocks with Explosive Potential?

According to Zacks experts, there are five handpicked stocks predicted to soar by +100% or more in 2023. The previous recommendations have delivered impressive gains, ranging from +143.0% to +673.0%.

These stocks are largely under the Wall Street radar, offering an exciting opportunity to get in at the ground level.

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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

Read the full article on Zacks.com here.

Zacks Investment Research

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

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