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Republic Services, Inc. (RSG), based in Phoenix, Arizona, is a major U.S. environmental services provider with a market cap of $63.9 billion. The company is a key player in waste management and recycling, offering services that support sustainability and environmental responsibility.
Companies valued at $10 billion or more are generally considered "large-cap" stocks, and Republic Analysts hold a positive outlook for RSG, driven by its recent strong performance relative to the broader industrial sector. Republic Services fits this criterion perfectly, signifying its substantial size, stability, and dominance in the waste management industry. Republic Services, committed to sustainability and innovation, drives eco-friendly waste management while expanding through acquisitions like Advanced Chemical Transport LLC and Central Texas Refuse, LLC, boosting its presence in the environmental solutions sector.
RSG shares are trading 2.8% below their 52-week high of $208.69, which they hit on Aug. 29. RSG has soared 8.4% over the last three months, outperforming the S&P 500 Industrial Sector SPDR’s (XLI) 3% rise over the same time frame.
In the long term, RSG is up 23% on a YTD basis, and the shares have gained 40.7% over the past 52 weeks. In comparison, the XLI has surged 10.4% in 2024 and 18.2% over the past year.
To confirm the bullish price trend, RSG has been trading above its 50-day moving average since late July and has remained consistently over its 200-day moving average for the past year.
Despite the solid price momentum over the past year, RSG stock plunged 5.2% in the following trading session after the company announced its Q2 earnings report on Jul. 24. It reported a profit of $511.5 million, or $1.62 per share, with adjusted earnings of $1.61 per share. These results exceeded Wall Street's expectations of $1.53 per share. The company also posted revenue of $4.05 billion, surpassing the forecasted $4.03 billion.
Republic Services faces competition from top waste management companies, including Waste Management, Inc. (WM). However, RSG has outperformed WM, with WM gaining 14.3% in 2024 and 31.3% over the past year.
Analysts hold a reasonably positive outlook for RSG, driven by its recent strong performance relative to the broader industrial sector. The stock has a consensus rating of "Moderate Buy" from 19 analysts in coverage. The mean price target of $213.61 reflects a 5.3% premium from current price levels.
On the date of publication, Kritika Sarmah 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.
