Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
) as a post-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified Republic Services as such a stock due to the following factors:
- RSG has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $66.2 million.
- RSG is up 5.3% today from today's close.
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More details on RSG:
Republic Services, Inc., together with its subsidiaries, provides non-hazardous solid waste collection, transfer, and recycling and disposal services for commercial, industrial, municipal, and residential customers in the United States and Puerto Rico. The stock currently has a dividend yield of 2.8%. RSG has a PE ratio of 22.9. Currently there are 5 analysts that rate Republic Services a buy, no analysts rate it a sell, and 3 rate it a hold.
The average volume for Republic Services has been 1.3 million shares per day over the past 30 days. Republic Services has a market cap of $13.4 billion and is part of the industrial goods sector and materials & construction industry. The stock has a beta of 0.56 and a short float of 2.3% with 3.66 days to cover. Shares are up 14.8% year-to-date as of the close of trading on Friday.
rates Republic Services as a
. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, revenue growth, reasonable valuation levels, increase in stock price during the past year and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows weak operating cash flow.
Highlights from the ratings report include:
- REPUBLIC SERVICES INC has improved earnings per share by 8.8% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, REPUBLIC SERVICES INC increased its bottom line by earning $1.61 versus $1.55 in the prior year. This year, the market expects an improvement in earnings ($1.95 versus $1.61).
- Despite its growing revenue, the company underperformed as compared with the industry average of 4.0%. Since the same quarter one year prior, revenues slightly increased by 3.8%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- The stock price has risen over the past year, but, despite its earnings growth and some other positive factors, it has underperformed the S&P 500 so far. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- The debt-to-equity ratio is somewhat low, currently at 0.90, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Despite the fact that RSG's debt-to-equity ratio is low, the quick ratio, which is currently 0.64, displays a potential problem in covering short-term cash needs.
- You can view the full Republic Services Ratings Report.