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

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

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 0.2%. By the end of trading, Republic Services fell 30 cents (-1.1%) to $28.22 on average volume. Throughout the day, 2.2 million shares of Republic Services exchanged hands as compared to its average daily volume of 2.4 million shares. The stock ranged in price between $28.19-$28.39 after having opened the day at $28.36 as compared to the previous trading day's close of $28.52. Other companies within the Materials & Construction industry that declined today were: Clean Harbors ( CLH), down 7.3%, China Advanced Construction Materials Group ( CADC), down 6.8%, Preformed Line Products Company ( PLPC), down 4.7%, and American Woodmark Corporation ( AMWD), down 3.2%.
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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 $10.47 billion and is part of the industrial goods sector. The company has a P/E ratio of 15.8, equal to the average materials & construction industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Shares are up 3.5% year to date as of the close of trading on Wednesday. Currently there are two analysts that rate Republic Services a buy, no analysts rate it a sell, and five 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 impressive record of earnings per share growth, compelling growth in net income, attractive 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 shows weak operating cash flow.

On the positive front, Apogee ( APOG), up 10.7%, Real Goods Solar ( RSOL), up 10%, Integrated Electrical Services ( IESC), up 7.5%, and Pure Cycle Corporation ( PCYO), up 4.7%, 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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