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Talking Trash – 3 Waste Management Stocks to Buy Now

These secular landfill kings deliver stability and even some income

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Waste Management Stocks to Buy Now – Republic Services (RSG)

Republic services rsg stock waste managementOperating Margins: 16.1%
Current Dividend Yield: 2.8%

Republic Services (RSG) operates in about 80% of the U.S., as well as Puerto Rico, spanning some 336 collection operations, 199 transfer stations, 190 active landfill operations and 64 recycling facilities.

In an interesting twist, RSG tapped former airline executive Robert Maruster to be its new executive VP and chief operating officer earlier this month. Maruster, who has held senior positions at JetBlue Airways (JBLU) and Delta (DAL) will be in charge of RSG’s expansive field operations, the company said.

Also of note, Bill Gates’ Cascade Investment, which already had a significant investment in RSG stock, acquired an additional 221,382 shares on June 12 for $8.1 million.

From a business perspective, Republic Services is focusing heavily on the advantages of natural gas-fueled vehicles. The company has had some negative PR in the past two weeks due to fires at landfills in Michigan and Nevada, but RSG stock still is up more than 12% year-to-date, so clearly confidence.

Its fundamentals are similar to Waste Management’s — RSG stock has a PEG ratio of 2.9 and a forward P/E of more than 17, which indicates that it could be overvalued. But also similarly to Waste Management, its strong place in the sector (and a broader focus on replacing its fleet with natural gas vehicles) will continue to lift this waste management stock.

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