4. Republic Services, Inc. (NYSE:RSG)
Chilton Investment Company’s Stake Value: $251,583,747
Number of Hedge Fund Holders: 45
Ranking 4th in our list of the safe stocks to buy according to billionaire Chilton is Republic Services, Inc. (NYSE:RSG). Republic Services, Inc. (NYSE:RSG) is a leading provider of environmental services in the United States, specializing in waste collection, recycling, and disposal. Republic Services (NYSE:RSG), the second-largest waste services provider in North America, holds a dominant position in an industry that thrives on scale and route density. Although its growth has traditionally been slower than its peers, Republic Services, Inc. (NYSE:RSG) is actively working to close that gap by advancing its use of technology.
Republic Services, Inc. (NYSE:RSG) is introducing digital tools, such as waste tracking, to boost customer loyalty and set itself apart from competitors. It is also implementing advanced technology in its collection routes, like cameras to detect overfill and contamination, which is already generating significant revenue. Having achieved $30 million in annual benefits so far, Republic Services, Inc. (NYSE:RSG) expects to reach $100 million in annual earnings through its RISE digital platform.
Among the 21 sellside analysts covering the stock, 9 rates it as a ‘buy,’ 11 as a ‘hold,’ and 1 as a ‘sell.’ The analysts have an average price target of $202.34, with the highest target at $230 and the lowest at $142. As of the end of Q1 2024, Chilton Investment Company held 1,314,165 shares of Republic Services, Inc. (NYSE:RSG), valued at $251,583,747. This investment accounted for 6.89% of Chilton’s total portfolio, according to regulatory filings.
ClearBridge Sustainability Leaders Strategy 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 industrials 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 center 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).”
