Why Should Stericycle (SRCL) Stock Grace Your Portfolio Now?
Stericycle SRCL continues to progress well with its multi-year Business Transformation initiatives aimed at improving long-term operational and financial performances.The company has strong customer relationships, which include long-term contracts ranging from three to five years.
Let’s delve into the factors that make SRCL an investment-worthy stock.
Earnings History
The company has an impressive earning surprise history, beating the Zacks Consensus Estimate in all four trailing quarters, with an average surprise of 21.8%
Stericycle, Inc. Price and EPS Surprise
Stericycle, Inc. price-eps-surprise | Stericycle, Inc. Quote
Other Positive Factors
Stericycle has been actively expanding through acquisitions, both domestically and internationally. In 2021, the company acquired a regulated waste business in the Midwest for $43.4 million, which bolstered its customer base in North America. The year 2020 did not see any acquisitions. However, in 2019, 2018, and 2017, Stericycle made significant acquisitions, which contributed $9.5 million, $29.7 million, and $32.2 million to its revenues, respectively. It's worth noting that the company completed one, 21, and 30 acquisitions in 2019, 2018, and 2017, demonstrating a consistent and robust acquisition strategy across various regions and business sectors.
This global acquisition approach is helping Stericycle expand its customer base and establish a solid foundation for long-term growth, thus offering a wide range of services. The company remains actively focused on identifying strategic acquisitions to increase its market share and broaden its geographic presence.
Stericycle offers essential services, which are typically time-sensitive and necessary at regular intervals. This characteristic ensures a consistent and dependable revenue stream for the company. Stericycle has cultivated robust, enduring customer relationships, often secured through extended contracts lasting between three to five years. These contracts contribute to maintaining an impressive revenue retention rate of approximately 90%.
SRCL currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Stocks to Consider
Here are some other top-ranked stocks from the Business Services sector:
Verisk Analytics VRSK beat the Zacks Consensus Estimate in three of the last four quarters and matched on one instance, with an average surprise of 9.9% The consensus mark for 2023 revenues is pegged at $2.66 billion, suggesting a decrease of 8.2% from the year-ago figure. The consensus estimate for 2023 earnings is pegged at $5.72 per share, indicating a 14% rise from the year-ago figure. VRSK currently carries a Zacks Rank of 2.
Automatic Data ADP currently has a Zacks Rank of 2. It outpaced the Zacks Consensus Estimate in all trailing four quarters, the average surprise being 3.1%. The consensus estimate for fiscal 2023 revenues and earnings implies growth of 6.3% and 11.1%, respectively.
Broadridge BR currently carries a Zacks Rank of 2. It surpassed the Zacks Consensus Estimate in two of the trailing four quarters, missed once and matched on one instance, the average surprise being 0.5%. The consensus estimate for fiscal 2024 revenues and earnings suggests growth of 7.2% and 8.8%, respectively.
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Broadridge Financial Solutions, Inc. (BR) : Free Stock Analysis Report
Automatic Data Processing, Inc. (ADP) : Free Stock Analysis Report
Stericycle, Inc. (SRCL) : Free Stock Analysis Report
Verisk Analytics, Inc. (VRSK) : Free Stock Analysis Report
