Services Sector Ideas

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>>> Republic Services (RSG)


https://www.yahoo.com/finance/news/10-retirement-stocks-buy-hold-173026891.html


10 Buy-and-Hold Stocks to Own Forever

Yahoo Finance

Dividend Yield: 1.82%


Republic Services (NYSE:RSG) is a bit smaller and likely a lot less well-known than rival Waste Management (NYSE:WM). But in this case, that’s not necessarily a bad thing.

Republic Services has outgrown its larger competitor in both sales and earnings over the past five years. RSG stock has modestly outperformed WM over the same period as well. Investors appear to believe that will continue, as Republic Services is valued a bit higher than Waste Management, at least based on forward earnings multiples.

Both RSG and WM are solid long-term plays. Contracted revenue and steady demand should support both companies for years to come. There’s room for further acquisitions in a relatively fragmented space. Republic Services gets the nod here due to slightly better growth and more room for margin improvement.

But investors looking for safe, stable growth can’t go wrong with either RSG or WM.

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