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Republic Services(RSG-N)

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Chart of the Day: Republic Service - There's Big Money In Trash

Barchart - Wed Feb 7, 7:00AM CST

 The Chart of the Day belongs to the waste management company Republic Services (RSG) .  I found the stock by using Barchart's powerful screening functions to find stocks with the highest technical buy signals, highest Weighted Alpha, superior current momentum and having a Trend Seeker buy signal then used the Flipchart  feature to review the charts for consistent price appreciation. Since the Trend Seeker signaled a buy on 11/ 2 the stock gained 14.48%.

RSG Price vs Daily Moving Averages

Republic Services, Inc., together with its subsidiaries, offers environmental services in the United States. It is involved in the collection and processing of recyclable, solid waste, and industrial waste materials; transportation and disposal of non-hazardous and hazardous waste streams; and other environmental solutions. Its residential collection services include curbside collection of material for transport to transfer stations, landfills, recycling centers, and organics processing facilities; supply of recycling and waste containers; and renting of compactors. The company also engages in the processing and sale of old corrugated containers, old newsprint, aluminum, glass, and other materials; and provision of landfill services. It serves small-container, large-container, and residential customers. As of December 31, 2022, the company operated through 353 collection operations, 233 transfer stations, 206 active landfills, 71 recycling centers, 6 saltwater disposal wells, and 7 deep injection wells, as well as 3 treatment, recovery, and disposal facilities in 41 states; and 20 treatment, storage, and disposal facilities. It also operates 73 landfill gas-to-energy and renewable energy projects, and 12 closed landfills. The company was incorporated in 1996 and is based in Phoenix, Arizona.

Barchart's Opinion Trading systems are listed below. Please note that the Barchart Opinion indicators are updated live during the session every 20 minutes and can therefore change during the day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the website when you read this report.

Barchart Technical Indicators:

  • 100% technical buy signals
  • 37.06+ Weighted Alpha
  • 40.18% gain in the last year
  • Trend Seeker buy signal
  • Above its 20, 50 and 100 day moving averages
  • 16 new highs and up 6.21% in the last month
  • Relative Strength Index 71.11%
  • Technical support level at $172.58
  • Recently traded at $173.68 with 50 day moving average of $165.41

Fundamental Factors:

  • Market Cap $54.51 billion
  • P/E 32.64
  • Dividend yield 1.19%
  • Wall Street projects Revenue will grow 10.10% this year and another 6.80% next year
  • Earnings are estimated to increase 11.40% this year, an additional 8.60% next year and continue to compound at an annual rate of 8.89% for the next 5 years

Analysts and Investor Sentiment -- I don't buy stocks because everyone else is buying but I do realize that if major firms and investors are dumping a stock it's hard to make money swimming against the tide:

  • Wall Street analysts issued 8 strong buy, 3 buy, 8 hold and 2 sell recommendation this month
  • Analysts price targets are $160 to $190 with a consensus of $176
  • Value Line gives the stock an average rating of 3 with an 18 month price target of $182 for a 5% gain
  • CFRAs MarketScope has a 4 star buy rating with a 12 month price target of $162 for a 7% Loss ---- Why a 4 star buy recommendation if you are predicting a 7% loss???
  • 17,120 investors monitor the stock on Seeking Alpha

Additional disclosure: The Barchart Chart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance and reevaluate your stop losses at least on a weekly basis.

On the date of publication, Jim Van Meerten 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.

Provided Content: Content provided by Barchart. The Globe and Mail was not involved, and material was not reviewed prior to publication.

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