Republic Services Inc (RSG): Today's Featured Materials & Construction Laggard

Republic Services ( RSG) pushed the Materials & Construction industry lower today making it today's featured Materials & Construction laggard. The industry as a whole closed the day down 1.3%. By the end of trading, Republic Services fell 30 cents (-1.1%) to $27.22 on light volume. Throughout the day, 2.2 million shares of Republic Services exchanged hands as compared to its average daily volume of three million shares. The stock ranged in price between $27.10-$27.51 after having opened the day at $27.38 as compared to the previous trading day's close of $27.52. Other company's within the Materials & Construction industry that declined today were: Universal Forest Products ( UFPI), down 15.9%, A V Homes ( AVHI), down 11.9%, American Woodmark Corporation ( AMWD), down 7.7%, and Heritage-Crystal Clean ( HCCI), down 6.8%.

Republic Services, Inc. provides non-hazardous solid waste collection, transfer, and disposal services for commercial, industrial, municipal, and residential customers in the United States and Puerto Rico. Republic Services has a market cap of $10.07 billion and is part of the industrial goods sector. The company has a P/E ratio of 17.8, equal to the average materials & construction industry P/E ratio and equal to the S&P 500 P/E ratio of 17.7. Shares are down 0.1% year to date as of the close of trading on Thursday. Currently there are three analysts that rate Republic Services a buy, no analysts rate it a sell, and four rate it a hold.

TheStreet Ratings rates Republic Services as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the positive front, Integrated Electrical Services ( IESC), up 9.6%, Cemex S.A.B. de C.V ( CX), up 4.9%, Toll Brothers ( TOL), up 4.4%, and Beazer Homes USA ( BZH), up 3.5%, were all gainers within the materials & construction industry with PulteGroup ( PHM) being today's featured materials & construction industry leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the materials & construction industry could consider SPDR S&P Homebuilders ETF ( XHB) while those bearish on the materials & construction industry could consider ProShares Short Basic Materials Fd ( SBM).
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