Is Republic Services Stock Underperforming the S&P 500?

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Is Republic Services Stock Underperforming the S&P 500?

With a market cap of $62.8 billion, Republic Services, Inc. (RSG) is a leading environmental services company that provides waste collection, recycling, and disposal solutions across the United States and Canada. The company offers a wide range of services, including the collection and processing of recyclable materials, solid waste, industrial waste, and hazardous waste streams. 

Companies valued at $10 billion or more are generally considered “large-cap” stocks, and Republic Services fits this criterion perfectly. It serves residential, commercial, and industrial customers through an extensive network of collection, recycling, and landfill operations.

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Shares of the Phoenix, Arizona-based company have fallen 19.2% from its 52-week high of $255.47. Republic Services’ shares have decreased 10.8% over the past three months, underperforming the broader S&P 500 Index’s ($SPX) 10.4% gain over the same time frame. 

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RSG stock is down 2.6% on a YTD basis, lagging behind SPX’s 10.8% rise. In the longer term, shares of the company have declined 18.8% over the past 52 weeks, compared to the 27% return of the SPX over the same time frame.

RSG stock has been trading below its 50-day and 200-day moving averages since last year.

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Republic Services posted strong Q1 2026 results on May 7, including 2.6% revenue growth, 4.3% adjusted EBITDA growth, 50-basis-point margin expansion to 32.1%, adjusted EPS of $1.70, and a 35% jump in adjusted free cash flow to $984 million. The company also outlined plans to deliver at least $100 million in annual AI and digital benefits by 2028 and exceed $1 billion in acquisitions in 2026. 

The company reported its first year-over-year growth in the temporary large container business in over two years and projected stronger performance in the second half of 2026. However, the stock fell marginally the next day.

In comparison, rival Waste Management, Inc. (WM) has shown a less pronounced decline than RSG stock. WM stock has dropped marginally on a YTD basis and 8.7% over the past 52 weeks.

Despite the stock’s weak performance, analysts remain moderately optimistic on RSG. The stock has a consensus rating of “Moderate Buy” from the 26 analysts in coverage, and the mean price target of $246.45 is a premium of 18.9% to current levels.


On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.

 

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