Under the Radar: Stericycle Dumps Rivals

"Under the Radar" is a daily feature that uncovers little-known companies worthy of investors' consideration. Check in at 5 every morning to find out about stocks that tend to beat their bigger brethren.

The ideal stock offers three things: a compelling story, a margin of safety and a low price. In the case of Lake Forest, Ill.-based Stericycle(SRCL Quote), two out of three ain't bad.

In the summer of 1987, swimmers on the Jersey Shore and Long Island were alarmed as medical waste, including blood vials and syringes, bobbed in the waves and washed ashore. It was clear that more stringent medical-waste regulation was necessary and, in 1988, Congress passed the Medical Waste Tracking Act, which initially required medical waste to be incinerated. Shortly thereafter, Stericycle was founded. ...