Turning Trash into Cash: 2 Waste Disposal Stocks Poised for Solid Returns

NYSE: RSG | Republic Services Inc. News, Ratings, and Charts

RSG – Globalization, industrialization, and technological progress have led to a surge in waste generation, highlighting the significance of effective waste management. In light of this, it could be wise to scoop up quality waste disposal stocks Republic Services (RSG) and Clean Harbors (CLH) that are well positioned to capitalize on the current trend toward responsible waste disposal. Read more….

Rapid population growth, globalization, industrialization, and technological advancements have fueled a substantial rise in waste generation. With waste management gaining greater significance, grabbing sound waste disposal stocks Republic Services, Inc. (RSG) and Clean Harbors, Inc. (CLH) could be a wise move to capitalize on this trend. Let us understand in detail.

Rapid population growth, globalization, and industrialization in emerging economies have driven a significant increase in global waste. Industries such as chemicals, oil & gas, automobiles, and medical sectors generate vast amounts of waste, contributing to pollution and environmental concerns.

In addition, the rapid advancement of technology has led to a mounting issue of e-waste. E-waste encompasses discarded electronic devices that have become obsolete or reached the end of their useful life. With the constant production and disposal of electronic devices, the problem of electronic waste continues to grow.

In recent decades, global waste generation has experienced a significant and alarming surge, with no indications of this trend slowing down. The worldwide municipal solid waste generation is estimated to soar by approximately 70%, reaching an astonishing 3.40 billion metric tons by 2050.

As one of the leading waste producers globally, the United States has a significant focus on waste management and has taken various initiatives in this regard. The Resource Conservation and Recovery Act (RCRA) empowers the Environmental Protection Agency (EPA) to regulate hazardous waste throughout its lifecycle, from generation to disposal.

Moreover, under the Bipartisan Infrastructure Law, the EPA has implemented waste prevention and recycling programs to enhance recycling infrastructure and promote sustainable practices.

According to Statista, the global waste management market was valued at $1.3 trillion in 2022 and is projected to grow at a 5.4% CAGR reaching $1.96 trillion in 2030.

The NASDAQ US Benchmark Waste & Disposal Services Index’s 28.4% return in the past six months highlights investors’ interest in waste disposal stocks. In light of this, let’s take a closer look at quality waste disposal stocks RSG and CLH.

Republic Services, Inc. (RSG)

RSG is an environmental services provider that offers a wide range of products and services, such as recycling, solid waste, hazardous waste, container rental, and field services. The company operates approximately 73 landfill gas-to-energy and other renewable energy projects. It also has post-closure responsibility for 128 closed landfills.

On March 27, RSG acquired North State Bioenergy, an anaerobic digestion facility located north of Sacramento, in a move that significantly expands its organics recycling operations in California. This would also aid RSG’s customers meet California’s climate strategy and sustainability goals.

Moreover, on February 20, RSG announced a deal with Oshkosh Corporation (OSK) to expand its electric truck fleet, with two prototypes expected to begin operation in autumn. Over the next five years, the company aims for EVs to comprise 50% of its new truck purchases, with the partnership speeding up the transition while providing enhanced safety features and tech.

During the first quarter that ended March 31, 2023, RSG’s revenue increased 20.6% year-over-year to $3.58 billion. Its adjusted EBITDA grew 15.1% from the year-ago value to $1.04 billion. In addition, the company’s net income and EPS grew 9.1% and 9% year-over-year to $383.90 million and $1.21, respectively.

The consensus revenue estimate of $14.88 billion for the fiscal year ending December 2023 reflects a 10.2% year-over-year improvement. Likewise, the consensus EPS estimate of $5.27 for the current year indicates a growth of 7% year-over-year.

Moreover, the company surpassed the consensus revenue and EPS estimates in all four trailing quarters, which is quite impressive.

Over the past three months, the stock has gained 16.4% to close the last trading session at $148.19.

RSG’s solid fundamentals are apparent in its POWR Ratings. The stock has an overall rating of B, equating to Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 different factors, each weighted to an optimal degree.

RSG has a B grade for Quality, Stability, and Sentiment. It is ranked #3 in the A-rated 15-stock Waste Disposal industry.

In addition to the POWR Ratings I’ve just highlighted, you can see RSG’s ratings for Value, Growth, and Momentum here.

Clean Harbors, Inc. (CLH)

CLH is an environmental and industrial services provider. It recycles used oil and provides cleaning parts and related environmental services to commercial, industrial, and automotive customers. The company operates through two segments, Environmental Services; and Safety-Kleen Sustainability Solutions.

On March 31, CLH acquired Thompson Industrial Services from MSouth Equity Partners and Five Points Capital for approximately $110 million in an all-cash deal. The acquisition would enable CLH to expand its reach in the southeast, where it had not previously offered industrial services, and reinforce its position in areas where it already provides environmental services.

For the first quarter that ended March 31, 2023, CLH’s revenues increased 11.8% year-over-year to $1.31 billion. Its adjusted EBITDA grew 19.3% from the year-ago value to $215.14 billion. Also, the company’s adjusted net income and EPS rose 63.1% and 63.9% year-over-year to $74.11 million and $1.36, respectively.

Analysts expect CLH’s revenue to increase 4.1% year-over-year to $5.27 billion for the fiscal year ending December 2024. The company’s EPS for the same year is expected to rise 9.8% year-over-year to $7.83. Furthermore, the company surpassed the consensus revenue and EPS estimates in all four trailing quarters.

Shares of CLH have gained 57% over the past year to close the last trading session at $138.51.

CLH’s solid fundamentals are apparent in its POWR Ratings. The stock has an overall rating of B, which translates to Buy in our proprietary rating system.

CLH has a B grade for Value, Quality, and Sentiment. It has topped the 15-stock Waste Disposal industry.

Click here to access additional CLH ratings for Stability, Growth, and Momentum. 

The Bear Market is NOT Over…

That is why you need to discover this timely presentation with a trading plan and top picks from 40 year investment veteran Steve Reitmeister:

REVISED: 2023 Stock Market Outlook > 

Want More Great Investing Ideas?

3 Stocks to DOUBLE This Year


RSG shares were trading at $147.88 per share on Monday morning, down $0.31 (-0.21%). Year-to-date, RSG has gained 15.07%, versus a 8.13% rise in the benchmark S&P 500 index during the same period.


About the Author: Aanchal Sugandh


Aanchal's passion for financial markets drives her work as an investment analyst and journalist. She earned her bachelor's degree in finance and is pursuing the CFA program. She is proficient at assessing the long-term prospects of stocks with her fundamental analysis skills. Her goal is to help investors build portfolios with sustainable returns. More...


More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
RSGGet RatingGet RatingGet Rating
CLHGet RatingGet RatingGet Rating
OSKGet RatingGet RatingGet Rating

Most Popular Stories on StockNews.com


What Happens After 6,000 for Stocks?

The S&P 500 (SPY) has the petal to the medal after the election and 2nd Fed rate cut. However, stocks are now pressed up against serious resistance at 6,000 which begs the question of what happens next? Investment pro Steve Reitmeister shares his timely market views including a preview of his top 10 stocks. Get the full story below...

3 Streaming Stocks Benefiting from Cord-Cutting Trends

As streaming continues to dominate the digital entertainment landscape, the global streaming market presents a lucrative investment opportunity. So, it could be ideal to invest in fundamentally solid streaming stocks Netflix (NFLX), Walt Disney (DIS), and Roku (ROKU). Read further...

3 Gold Stocks to Buy as Safe-Haven Demand Grows

Gold is a stable investment now due to its role as a safe-haven asset during economic uncertainty, rising demand, industrial use, and growth, bolstered by central bank purchases and interest rate cuts. Therefore, investors should consider investing in top gold stocks such as Newmont (NEM), Barrick Gold (GOLD), and Agnico Eagle Mines (AEM). Read more...

3 AI Stocks Transforming Industries and Driving Future Growth

With rapid digitalization, rapid adoption, and development, as well as surging demand, the AI market is on the rise. Amid this backdrop, investors could buy fundamentally solid AI stocks NVIDIA Corporation (NVDA), Microsoft (MSFT), and Meta Platforms (META) poised for substantial gains. Continue reading...

Stock Investing AFTER the Election

The S&P 500 (SPY) has been stuck under the highs awaiting the election results. The biggest mystery is how soon results will be finalized. The second biggest concern is what the Fed will do at their 11/7 meeting. Steve Reitmeister shares his views on these things along with fresh market outlook and preview of his top 10 stocks to buy now.

Read More Stories

More Republic Services Inc. (RSG) News View All

Event/Date Symbol News Detail Start Price End Price Change POWR Rating
Loading, please wait...
View All RSG News