Today's Technical View on Waste Management and Republic Services: Waste Collection Companies Offer Solid Returns
LONDON, February 25, 2013 /PRNewswire/ --
Trash collection may not seem like a glamorous business, but the companies in this area are attractive investment option for value investors. Waste Management Inc. (NYSE: WM) announced good quarterly growth and increased its quarterly dividend, providing healthy returns to its investors. Similarly, Republic Service Inc. (NYSE: RSG) also reported robust quarterly results. Waste management companies are also making noticeable acquisitions to streamline their business. Waste Management Inc. acquired Greenstar and Oakleaf in the recent past. The sector seems poised for growth. StockCall initiated free in-depth technical analysis on Waste Management and Republic Services which are currently available upon sign up at
Republic Service Inc. Struggles with Unions
Republic Service Inc. reported its fourth quarter revenue at $2.03 billion, surpassing consensus estimate of $2 billion. However, its EPS at 37 cents per share lagged behind analysts' estimates. The company was expected to post 43 cents per share in income. Republic Service Inc. had high maintenance and labor costs which brought down its net income. On the other hand, better pricing helped it to generate higher revenue. The company expects its revenue to grow 2 to 2.5 percent in Fiscal 2013. It also expects its margins to improve during the year. Sign up for the free technical analysis on Waste Management Inc. at http://www.StockCall.com/WM0225513.pdf
The company also faced its fair share of problems as it dealt with labor unions. The company has been engaged in negotiations with Teamsters Union and the Union resorted to work stoppage earlier this year. But apart from this, the company is at the center of certain speculations as well. It is rumored that Republic Service Inc. may spin off its land and property assets as a separate Real Estate Investment Trust (REIT).
Republic Service's stock grew 7 percent so far this year, and it has attractive dividend yield ratio at 3 percent. The company's stock trades at Price/Earnings ratio of 20.22, which is in-line with the P/E ratios sported by its peers. The stock is an attractive option for income investors.
Waste Management Inc. Acquires Companies
Waste Management Inc. is one of the leading companies in this space. The company recently reported its fourth quarter earnings and announced higher revenue. Surpassing analysts' expectations of $3.39 billion revenue, the company announced $3.43 billion. Its EPS stood at 57 cents per share. The market had pegged the EPS expectations at 60 cents per share. With 3.88 percent dividend yield, the stock is a favorite with income investors and its management did not disappoint as it increased its dividend for the 10th consecutive year. Management also said that it expects dividend to grow in the future as well. Download the free report on Republic Services Inc. by registering at http://www.StockCall.com/RSG022513.pdf
Waste Management Inc. is also looking to restructure its business and reduce the costs. At the very same time, the company also focuses on its growth through acquisitions and mergers. Waste Management Inc. made a number of acquisitions including Greenstar acquisition and Oakleaf purchase. Greenstar acquisition will help the company in consolidating its position in recycling business. Recycling sector is set to progress well along with growing environmental consciousness. However, waste to energy sector may suffer due to low energy prices. Overall scenario for the company looks good as it expects to earn $13.94 billion in revenue for its fiscal year.
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