This story originally appeared on Zacks
Republic ServicesInc. RSG is a waste management service provider that has performed well over the past year and has the potential to increase momentum in the near term. Therefore, we think it’s time you added the stock to your portfolio.
What makes RSG an attractive choice?
Price performance: An overview of the company’s price trend reveals that the stock has performed impressively over the past year. Republic Services shares returned 37.4% against the 7% drop in the industry it belongs to.
Solid rank: Republic Services has a Zacks Rank #2 (Buy) and a Value Growth Momentum Score (VGM Score) of B. Our research shows that stocks with a VGM score of A or B, when combined with a Zacks Rank #1 (Strong Buy) or 2, offers the best investment opportunities. Thus, the company is a compelling investment proposition at the moment. You can see the full list of today’s Zacks #1 Rank stocks here.
Strong growth prospects: Zacks’ consensus estimate of $4.14 for RSG earnings per share in 2021 reflects 16.3% year-over-year growth. Earnings are expected to grow 10.7% year-over-year in 2022.
History of positive results: Republic Services has an impressive history of earnings surprises. The company has exceeded the Zacks consensus estimate for the past four quarters, posting an average pace of 14.2%.
Growth factors: Republic Services continues to focus on its strategic priority of increasing customer loyalty and willingness to pay for higher value services. In this regard, the company has expanded its product line and invested in customer service capabilities. Republic Services’ customer retention rate remains at 95% at the end of the third quarter of 2021.
The company continues to digitally connect customers, drivers, dispatchers, supervisors and trucks through its RISE dispatch platform. This improves productivity with more real-time routing information and data visualization tools, increases customer connectivity, and improves the employee experience.
The recent acquisition of ACV Enviro has expanded the company’s capabilities and offerings in the area of environmental services.
Other actions to consider
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