Stericycle (SRCL) Declined on Macro Pressure

Ariel Investments, an investment management company, released its “Ariel Appreciation Fund” first-quarter 2023 investor letter. A copy of the same can be downloaded here. In the first quarter, the Ariel Appreciation fund gained +1.72% ahead of the Russell Midcap Value Index’s +1.32% return while trailing the Russell Midcap Index’s +4.06% return. The fund’s annual average returns for 1-, 5-, and 10-year periods for the period ended March 31, 2023, were -6.66%, +5.32%, and +7.94%, respectively. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.

Ariel Appreciation Fund highlighted stocks like Stericycle, Inc. (NASDAQ:SRCL) in the first quarter 2023 investor letter. Headquartered in Bannockburn, Illinois, Stericycle, Inc. (NASDAQ:SRCL) provides waste management services. On June 1, 2023, Stericycle, Inc. (NASDAQ:SRCL) stock closed at $43.19 per share. One-month return of Stericycle, Inc. (NASDAQ:SRCL) was -1.05%, and its shares lost 14.00% of their value over the last 52 weeks. Stericycle, Inc. (NASDAQ:SRCL) has a market capitalization of $3.993 billion.

Ariel Appreciation Fund made the following comment about Stericycle, Inc. (NASDAQ:SRCL) in its Q1 2023 investor letter:

“Shares of waste management services provider Stericycle, Inc. (NASDAQ:SRCL) also underperformed in the period as macro pressures of inflation, higher interest expense and increased costs associated with the deployment of its new Enterprise Resource Planning (ERP) system weighed on quarterly earnings. As a result, management delivered softer than expected guidance for full year 2023 and re-set its long-term outlook. Looking ahead, SRCL is targeting a full rollout of its new ERP system in its largest business, North America Regulated Waste and Compliance Services during the second half of 2023. The company expects the ERP implementation to enable significant margin expansion, which in turn is expected to improve free cash flow. We continue to believe SRCL is a solid franchise with stable long-term growth prospects, favorable margin expansion and strong free cash flow generation opportunities.”

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Stericycle, Inc. (NASDAQ:SRCL) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 28 hedge fund portfolios held Stericycle, Inc. (NASDAQ:SRCL) at the end of first quarter 2023 which was 21 in the previous quarter.

We discussed Stericycle, Inc. (NASDAQ:SRCL) in another article and shared the list of best waste management stocks to buy. In addition, please check out our hedge fund investor letters Q1 2023 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.