Republic Services (RSG) is a Top-Ranked Value Stock: Should You Buy?
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors.
Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.
Why Investors Should Pay Attention to This Value Stock
Finding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to highlight the most attractive and discounted stocks.
Republic Services (RSG)
Republic Services is the second largest provider of non-hazardous solid waste collection, transfer, disposal, recycling, and energy services in the United States. As of Dec 31, 2021, the company operated facilities in 41 states and Puerto Rico through 356 collection operations, 239 transfer stations, 198 active landfills, 71 recycling processing centers, three treatment, recovery and disposal facilities, 6 salt water disposal wells. The company is engaged in 77 landfill gas-to-energy and renewable energy projects and had post-closure responsibility for 124 closed landfills. The was incorporated in Delaware in 1996.
RSG sits at a Zacks Rank #3 (Hold), holds a Value Style Score of B, and has a VGM Score of B. Compared to the Waste Removal Services industry's P/E of 18.6X, shares of Republic Services are trading at a forward P/E of 27X. RSG also has a PEG Ratio of 2.4, a Price/Cash Flow ratio of 15.9X, and a Price/Sales ratio of 3.2X.
A company's earnings performance is important for value investors as well. For fiscal 2022, six analysts revised their earnings estimate higher in the last 60 days for RSG, while the Zacks Consensus Estimate has increased $0.04 to $4.82 per share. RSG also holds an average earnings surprise of 8%.
With strong valuation and earnings metrics, a good Zacks Rank, and top-tier Value and VGM Style Scores, investors should strongly think about adding RSG to their portfolios.
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