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Allied Waste Industries (AW) provides waste collection, transfer, recycling and disposal services in the U.S. and Puerto Rico. It has been downgraded to hold from buy.
The company's revenue grew by 2.0% in the third quarter compared with the same period last year, outpacing the industry average of 0.6%. Allied Waste also displays expanding profit margins and good cash flow from operations. However, its third-quarter earnings fell by 11.77% to 15 cents per share from 17 cents a share in the same period last year, and the company has shown generally poor debt management.Its stock price has fallen 14.96% in the last 12 months, and despite the decline, is still selling for more than most others in its industry. Allied Waste had been rated a buy since August 2007.