Health regulations are strict about biohazard risks -- and Stericylce is one of the biggest beneficiaries of the foot-thick rulebooks used at hospitals. Recent changes in the healthcare arena continue to look positive for SRCL; the firm should see boosted volume as more Americans have health coverage, and as Americans become older as a group. It's not just the U.S. providing a tailwind for SRCL, however -- the firm has been pushing internationally, acquiring smaller medical waste firms in Latin America, Europe, and Japan.
Stericycle enjoyed stair-step growth during the recession, posting new sales and profit highs each year despite an economic meltdown that was threatening less entrenched firms. While the firm is hardly "cheap" right now, investors are getting growth for the premium that's currently priced into shares.
PVH Corporation (PVH - Get Report) is having a stellar year in 2012 -- shares of the apparel company have rallied more than 54% this year, getting its most recent boost after announcing an acquisition deal to purchase Warnaco (WRC) for around $3 billion. The deal will round out PVH's portfolio of Calvin Klein brands and add new labels like Chaps and Speedo to the stable of names that the firm already owns.Right now, those brands include Tommy Hilfiger, IZOD, Kenneth Cole, and BCBC Max Azria in addition to the firm's namesake Van Heusen label. PVH has been on a buying spree in the last few years, picking up the Hilfiger brand in a $3 billion deal that gave the firm control over one of the most popular brands of recent years at a bargain price right when equity prices were struggling. Now, the Warnaco acquisition adds a couple more powerhouse brands to PVH's balance sheet at what's arguably a very attractive price. While growth has been well priced on a relative scale, it has dramatically upped the debt load on PVH's balance sheet. Despite the larger leverage, PVH still carries a relatively low level of total debt compared to equity. Recent price action shows that Wall Street really likes the moves that this stock has been making -- and so should you.
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