12 Best Waste Management Stocks to Invest In Now

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

Number of Hedge Fund Investors: 51

Republic Services, Inc. (NYSE:RSG) is the second largest landfill owner in the industry and is included in the list of our Best Waste Management Stocks, with around 207 active landfills and 246 transfer sites, behind only Waste Management. As a fully integrated waste carrier, it uses a wide network of collection routes and transfer stations to exert great control over the waste stream, transporting rubbish from commercial, industrial, and residential end markets to its landfills. The company’s end markets include residential, commercial, and industrial. It also operates a significant recycling operation throughout North America. The scale of the market rapidly declines and fragments outside of the major public suppliers, which account for around half of industry revenue.

The company sees consistent demand for its services and has invested in green initiatives such as landfill gas-to-energy projects and fleet electrification. Its broad network of landfills and recycling facilities offers consistent revenue and long-term expansion opportunities. Republic Services, Inc. (NYSE:RSG) generates significant cash flows because of its solid operation. In the previous 12 months, it earned $2 billion in net income and generated approximately $4 billion in operating cash flow.

The firm had a strong finish to the fiscal year 2024. Fourth-quarter revenue rose by approximately 6% year on year, driven by pricing gains, acquired revenue, and an upsurge in environmental services. The adjusted EBITDA margin improved 110 basis points to 31.0%. Management expects better sales and profitability in 2025.

TD Cowen upgraded the Republic Services, Inc. (NYSE:RSG)’s price target to $235 from $220. According to the firm, it continues to execute effectively, and investors appear to be attracted to its straightforward strategy. While the 2025 outlook may appear unimpressive, analysts believe the company has set a low bar and anticipate numerous opportunities for upward estimate revisions throughout the year.