Republic Services Transforming and Growing

FX Empire
04-04

RSG is an environmental services provider focused on recycling and solid waste. Its business is comprised of three primary segments, with each one serving different geographic regions across the U.S. and Canada. The company recent opened North America’s first polymers plastics recycling complex in Indianapolis, which will transforming recycled plastics into food-grade packaging and other products. RSG also completed two natural gas projects, bringing its annual total to six.

Finaically, Republic Services’s fourth-quarter fiscal 2024 financial report showed 7% revenue growth for the year, $6.46 in annual per-share earnings, increased production volumes, and a 94% customer retention rate. The company also produced 10% more adjusted free cash flow than the prior year, bringing its total to almost $2.2 billion in 2024. Also, the recent addition of digital tools has led to significant cost savings and operational efficiencies.

It’s no wonder RSG shares have gained 23% this year – and they could grow more. Based on MAPsignals data, investors are betting heavily on the forward picture of the stock.

Big Money Buys Republic Services

Institutional volumes reveal plenty. In the last year, RSG has enjoyed heavy Big Money buying, which we believe to be institutional accumulation.

Each green bar signals unusually large volumes in RSG shares, pushing the stock higher:

Source: www.mapsignals.com

Plenty of industrials names are under accumulation right now. But when you dive into the fundamentals, there’s a special tailwind going on with Republic Services.

Republic Services Fundamental Analysis

Institutional support coupled with a healthy fundamental backdrop makes this company worth investigating. As you can see, RSG has had strong sales and earnings growth:

  • 3-year sales growth rate (+12.5%)
  • 3-year EPS growth rate (+17.1%)

Source: FactSet

The one-year EPS outlook is estimated to increase by +10.2%.

Now it makes sense why the stock has been powering to new heights. RSG is gaining due to its strong financial performance.

Marrying great fundamentals with our proprietary software has found some big winning stocks over the long term.

RSG has been a top-rated stock at MAPsignals. That means the stock has unusual buy pressure and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.

It’s made the rare Top 20 report multiple times in the last year. The blue bars below show when RSG was a top pick…rising with time.

Source: www.mapsignals.com

Tracking unusual volumes reveals the power of money flows.

This is a trait that most superstar stocks exhibit. Today’s money flows often reveal tomorrow’s leaders.

Republic Services Price Prediction

The RSG rally isn’t new at all. Big Money buying in the shares is signaling to take notice. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.

Disclosure: the author holds no position in RSG at the time of publication.

If you are a Registered Investment Advisor (RIA) or a serious investor looking to take your investing to the next level, learn more about the MAPsignals process here.

This article was originally posted on FX Empire

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