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

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 higher today making it today's featured materials & construction winner. The industry as a whole closed the day up 0.4%. By the end of trading, Republic Services rose 42 cents (1.3%) to $31.72 on average volume. Throughout the day, 1.9 million shares of Republic Services exchanged hands as compared to its average daily volume of 1.9 million shares. The stock ranged in a price between $31.18-$31.82 after having opened the day at $31.23 as compared to the previous trading day's close of $31.30. Other companies within the Materials & Construction industry that increased today were: Goldfield ( GV), up 10.3%, Sharps Compliance Corporation ( SMED), up 8.3%, China Advanced Construction Materials Group ( CADC), up 7%, and Guanwei Recycling ( GPRC), up 6%.
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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. Republic Services has a market cap of $11.19 billion and is part of the industrial goods sector. The company has a P/E ratio of 19.9, above the S&P 500 P/E ratio of 17.7. Shares are up 6.7% year to date as of the close of trading on Friday. Currently there is one analyst that rates 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 revenue growth, reasonable valuation levels, largely solid financial position with reasonable debt levels by most measures, expanding profit margins and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the negative front, Sterling Construction Company ( STRL), down 3.5%, Universal Forest Products ( UFPI), down 3.5%, Great Lakes Dredge & Dock Corporation ( GLDD), down 3.2%, and Matrix Service Company ( MTRX), down 3.1%, were all laggards within the materials & construction industry with Eagle Materials ( EXP) being today's materials & construction industry laggard.

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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