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Republic Services, Inc. (RSG), headquartered in Phoenix, Arizona, is a leading provider of environmental services in the U.S. With a market cap of $59.41 billion, Republic Services plays a crucial role in waste management and recycling, offering a comprehensive range of services that promote sustainability and environmental responsibility. Competing with other top-tier waste management companies, Republic Services' main rivals include Waste Management, Inc. (WM), known for its extensive network of recycling and disposal facilities.
Companies valued at $10 billion or more are generally considered "large-cap" stocks and Republic Services fits this criterion perfectly, signifying its substantial size, stability, and dominance in the waste management industry. With a strong commitment to sustainability and innovation, Republic Services continually advances the waste management sector, ensuring efficient and eco-friendly practices that benefit both communities and the environment.
RSG shares are trading 4.1% below their 52-week high of $196.76, which they hit on Apr. 30. RSG has seen a 1.2% gain over the last three months compared to the marginal decline seen in the Dow Jones Industrial Average Index ($DOWI) during the same period.
In the long term, RSG is up 14.4% YTD, and the shares have gained 31.4% over the past 52 weeks. In comparison, the Dow is up 2.4% in 2024 and 13.6% over the past year.
To confirm the bullish price trend, RSG has been trading above its 200-day moving average since late March 2023.
Republic Services reported its Q1 results on Apr. 30. Following the earnings release, RSG shares saw a marginal decline and a 3% slip the following day. The company reported a net income of $453.8 million, translating to a profit of $1.44 per share. When adjusted for restructuring costs, the earnings were $1.45 per share, surpassing Wall Street expectations of $1.37 per share as estimated. However, the company's revenue of $3.86 billion fell short of the forecasted $3.88 billion.
Highlighting the contrast in performance, RSG's competitor, WM, has underperformed RSG, with a 13.7% gain on a YTD basis.
Analysts are optimistic about RSG's prospects, given its recent outperformance compared to DOWI. The stock has a consensus rating of "Moderate Buy" from 19 analysts in coverage. The mean price target of $201.83 reflects a 7% premium over current levels.
On the date of publication, Rashmi Kumari 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.
