10 Best Waste Management Stocks to Buy According to Analysts

8. Republic Services, Inc. (NYSE:RSG)

Market cap as of November 22, 2024: $67.03 Billion

Number of Hedge Fund Holders: 45

Stock Upside Potential: 4.72% 

Republic Services, Inc. (NYSE:RSG) is an industrial company that collects and processes recyclable solid waste and industrial waste materials. The company has carved a niche as one of the best waste management stocks, going by the 29.78% year-to-date gain owing to its commitment to sustainability and innovation. The company has also embarked on an aggressive acquisition strategy that has seen it acquire Advanced Chemical Transport LLC and Central Texas Refuse, LLC, bolstering its prospects in the environmental solutions sector.

One of Republic Services, Inc.’s (NYSE:RSG) strong points has been the Environmental Solutions division, which has shown excellent margin performance, a sign of efficient operations and cost control. The company delivered impressive third-quarter results on October 29, 2024, as it benefited from strong pricing ahead of cost inflation and on the back of effective cost management.

Revenue in the quarter was up by 6.5% to $4.08 billion, including 4.2% organic growth and 23% from acquisitions. Net income also rose to $565.7 million or $1.80 a share from $480.2 million or $1.52 a share delivered the same quarter last year. The solid financial results affirm Republic Services, Inc. (NYSE:RSG)’s well-designed strategy expected to drive sustainable growth while creating shareholder value.

ClearBridge Investments stated the following regarding Republic Services, Inc. (NYSE:RSG) in its Q2 2024 investor letter:

“We added two new names to the portfolio in the quarter. Republic Services, Inc. (NYSE:RSG) is a waste disposal company in the industrial sector whose services include non-hazardous solid waste collection, waste transfer, waste disposal, recycling and energy services. It is a stable-through-the-cycle compounder in a consolidated industry. The company’s end market is resilient, which gives us some confidence in the stability of its earnings through a recession. In the next few years, cash flow should grow at the high end of the range as Republic Services benefits from high-returning sustainability investments in polymer recycling and renewable natural gas, which also improve the company’s emission and circularity profile.

Republic Services continues to set ambitious goals around sustainability targets, such as increasing its renewable energy generation by 50% through the beneficial reuse of biogas. In addition, its 74 recycling centers process five million tons of materials per year and include a major polymers centre for plastics. Notably, it is the first North American waste and recycling company with an emissions reduction goal approved by the Science-Based Targets initiative (SBTi).”