Shares of Republic Services, Inc. RSG have had a decent run over the past month. The stock has risen 4.1% against the industry's 0.7% decline. The Zacks S&P 500 Composite gained 1.6% during the said time frame.
RSG has a Growth Score of B. This style score condenses key financial metrics to reflect a fair sense of the quality and sustainability of its growth.
The company’s second-quarter 2026 earnings are expected to increase 2.3% year over year. Earnings for 2026 and 2027 are projected to rise 3.7% and 10.4%, respectively, year over year. Revenues are expected to increase 3.7% in 2026 and 5.6% in 2027.
Factors That Bode Well for RSG
RSG is benefiting from the expanding North American solid waste management market. The surge in the urban population across the United States and Canada is expected to boost solid waste production. Moreover, the rapid adoption of zero-waste initiatives and industrial growth across the region is driving demand for commercial and industrial waste solutions.
Republic Services, Inc. Revenue (TTM)
Republic Services, Inc. revenue-ttm | Republic Services, Inc. Quote
The company is improving pricing, customer service and operational efficiency by accelerating its digital transformation efforts through artificial intelligence and advanced technology initiatives. RSG is deploying AI-powered predictive pricing tools to optimize pricing decisions across different markets, while supporting customer retention and reducing attrition. The company is also enhancing its RISE digital platform, a cloud-native outing and logistics solution, to improve safety, service quality and route efficiency.
RSG pursues strategic acquisitions to strengthen its market position and expand service capabilities. It invested more than $433 million in acquisitions during the first quarter of 2026. Management expects acquisition spending to exceed $1 billion during 2026 for opportunities in the recycling and waste business, as well as the Environmental Solutions segment.
Republic Services consistently rewards its shareholders through dividend payments and share repurchases. In 2022, 2023, 2024 and 2025, the company paid $592.9 million, $650 million, $687 million and $738 million in dividends, while repurchasing shares worth $203.5 million, $261.8 million, $482 million and $870 million, respectively. These shareholder-friendly policies enhance shareholder value and make the stock attractive to investors.
Key Risks to Watch
RSG faces stiff competition from large national waste management companies, multiple municipalities and several other regional and smaller companies in the solid waste industry. This puts pressure on the company to continually innovate and differentiate its offerings while maintaining cost efficiency. Therefore, the need to invest in technology and talent to maintain a competitive edge increases the challenge of balancing growth and profitability.
Republic Services' current ratio (a measure of liquidity) at the end of the first quarter of 2025 was 0.67, lower than the industry average of 1.08. A current ratio of less than 1 implies that the company might face trouble in covering its short-term obligations.
RSG’s Zacks Rank & Stocks to Consider
Republic Services currently carries a Zacks Rank #3 (Hold).
A couple of better-ranked stocks in the Business Services sector are Trane Technologies plc TT and TransUnion TRU.
Trane Technologies carries a Zacks Rank #2 (Buy) at present. It has a long-term earnings growth expectation of 14.6%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
TT delivered a trailing four-quarter earnings surprise of 2.7%, on average.
TransUnion also holds a Zacks Rank of 2 at present. It has a long-term earnings growth expectation of 13.5%.
TRU beat earnings estimates in each of the last four quarters, with an average earnings surprise of 6.3%.
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Republic Services, Inc. (RSG): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).