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 up 0.6%. By the end of trading, Republic Services fell $0.61 (-1.8%) to $33.95 on average volume. Throughout the day, 2,339,499 shares of Republic Services exchanged hands as compared to its average daily volume of 1,648,600 shares. The stock ranged in price between $33.94-$34.61 after having opened the day at $34.56 as compared to the previous trading day's close of $34.56. Other companies within the Materials & Construction industry that declined today were: MagneGas Corporation ( MNGA), down 14.2%, Perma-Fix Environmental Services ( PESI), down 8.8%, Industrial Services of America ( IDSA), down 7.9% and India Globalization Capital ( IGC), down 5.3%.
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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 $12.6 billion and is part of the industrial goods sector. The company has a P/E ratio of 23.1, above the S&P 500 P/E ratio of 17.7. Shares are up 17.8% year to date as of the close of trading on Thursday. Currently there are 2 analysts that rate Republic Services a buy, no analysts rate it a sell, and 5 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, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

On the positive front, United States Lime & Minerals ( USLM), down 6.6%, Tri-Tech ( TRIT), down 6.4%, Orion Marine Group ( ORN), down 5.9% and Matrix Service Company ( MTRX), down 5.8% , were all gainers within the materials & construction industry with Cemex S.A.B. de C.V ( CX) 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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