2 Garbage Stocks Worth Buying Now

Proactive measures by the government to curb emissions and increase awareness among the public should accelerate the growth of the waste management industry. Given this scenario, two major industry players, Waste Management (WM) and Republic Services (RSG), may now be worth buying. read on.

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The waste management industry took a hit during the pandemic as the lockdown led to a decline in waste products from the industrial sector. However, the industry is gaining traction with the reopening of production facilities. Global waste management market is expected to grow at 3.4% CAGR To reach $2.48 trillion by 2030.

The growth of the global waste management market is expected to be primarily driven by proactive measures to reduce illegal dumping and curb greenhouse gas emissions. In addition, increasing awareness of renewable waste management systems and increasing need to develop waste-to-energy solutions is expected to provide lucrative growth opportunities for this market.

Against this background, key industry participants are Waste Management, Inc. ,wm) and Republic Services, Inc. ,rsg) can be excellent additions to one’s portfolio. These stocks are rated Strong Buy in our proprietary rating system.

Waste Management, Inc. ,wm,

WM provides waste management environmental facilities to residential, commercial, industrial and municipal customers in North America. It provides waste collection and transportation services, material recovery facilities (MRF), and owns and operates landfill gas-to-energy facilities and transfer stations.

WM’s operating revenue grew 13.4% year-on-year to $4.66 billion for the first quarter of the fiscal year ended March 31, 2022. Its income from operations increased 18.2% from a year ago price to $768 million. Net income attributable to WM increased 21.9% year-over-year to $513 million. In addition, its EPS came in at $1.23, up 24.2% from the prior-year quarter.

Analysts expect WM’s revenue to be $4.84 billion for the fiscal quarter ending June 2022, indicating year-over-year growth of 8.1%. Also, the company’s EPS is expected to grow 10.3% year-on-year to $1.40 for the same quarter.

Over the past year, the stock is up 3.3% to close the previous trading session at $143.99.

The strong fundamentals of WM are reflected in its power rating, The stock has an overall rating of A, which translates to a strong buy in our POWR rating system. The POWR rating is calculated by considering 118 different factors, each factor weighted to an optimum degree.

WM is rated B on Growth, Stability, Sentiment and Quality. within B-rated waste disposal industry, it is ranked #1 among 15 stocks. click here Price for WM and additional POWR ratings for speed.

Republic Services, Inc. ,rsg,

RSG provides environmental services in the United States, including the collection and processing of recyclable materials, the collection, transfer and disposal of non-hazardous solid waste, and other environmental solutions.

On May 5, RSG and Archaea Energy, Inc. ,LFGAn industry-leading renewable natural gas (RNG) producer in the United States announced a joint venture to develop 39 RNG projects across the country. This is expected to support the RSG’s long-term sustainability goal of reusing 50% more biogas by 2030.

In the same month, RSG acquired US Ecology, Inc. completed the acquisition. ,ecolo) Through this acquisition, the company expects to expand RSG’s environmental solutions footprint in the United States and Canada and provide vertically integrated capabilities to fuel the company’s growth and revenue opportunities.

RSG’s revenue grew 14.4% from the prior-year quarter to $2.97 billion in the first quarter of the fiscal year ended March 31, 2022. gross operating income For the quarter came in $560.60 million, representing an increase of 13.9% year-over-year, while net income attributable to RSG was $352 million, up 19% year-over-year. Its EPS rose 19.4% to $1.11 from its year-ago price.

The consensus EPS estimate of $1.19 for the fiscal second quarter ending June 2022 represents an 8.8% improvement year-over-year. Consensus revenue estimates of $3.32 billion for the same quarter represent an increase of 18% compared to the same period last year. It has an impressive earnings surprise history, as it has topped Street EPS estimates in each of the past four quarters.

The RSG is up 14.9% over the previous year to close the previous trading session at $124.53.

RSG’s strong core elements are reflected in its POWR rating. The stock has an overall rating of A, which equates to a strong buy in our POWR rating system.

The company has a B grade in Growth, Quality, Sentiment and Stability. The stock is ranked #2 in the same industry. To get the RSG’s rating for speed and value, click here,

Shares of WM fell $1.99 (-1.38%) in premarket trading on Wednesday. Year-over-year, WM declined -13.01%, compared to a gain of -20.79% in the benchmark S&P 500 index during the same period.

About the Author: Komal Bhattari

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Komal’s passion for the stock market and financial analysis inspired her to pursue investment research as a career. His fundamental approach to analyzing stocks helps investors identify the best investment opportunities.


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