Reasons Why You Should Hold RSG Stock in Your Portfolio Now

Republic Services, Inc. RSG shares have gained 2% in a month against the 1.8% decline of the Waste Removal Services industry and a 1.7% fall of the S&P 500 composite.

The company’s earnings for 2026 and 2027 are expected to improve 3.1% and 10.8%, respectively, year over year. RSG has a long-term (three to five years) expected earnings growth rate of 8.5%.

Factors That Augur Well for RSG

Republic Services earned a place on Fortune’s World’s Most Admired Companies list for the fifth time, reinforcing its strong corporate reputation, disciplined management and consistent operational performance. Executives, directors and analysts recognized the company’s financial strength, innovation, social responsibility and long-term investment value, highlighting its ability to drive profitability while advancing sustainability initiatives. In the first quarter of 2026, the company strengthened its credibility by earning recognition from Ethisphere as one of the World’s Most Ethical Companies and maintaining Great Place to Work certification for nine consecutive years, demonstrating its commitment to ethical practices, employee engagement and long-term growth.

Republic Services reinforced its commitment to social responsibility by awarding a $100,000 grant to The Martin Luther King, Jr. Center for Nonviolent Social Change to support its Nonviolence 365 education program. Through this funding, Republic Services actively invests in community development by equipping youth and adults with conflict-resolution, leadership and social-emotional skills. The partnership demonstrates the company’s proactive efforts to drive meaningful social impact beyond its core operations, strengthen its ESG profile and build long-term stakeholder trust while enhancing its brand reputation.

RSG’s commitment to its shareholders is commendable. The company returned $1.6 billion to shareholders, including $854 million in share repurchases and $738 million in dividends. In comparison, cash dividends paid totaled $638 million in 2023, and $592.9 million and $552.6 million in 2022 and 2021, respectively. The recent increase in the quarterly dividend to $0.580 per share represents an 7.8% increase over the prior year, marking the 22nd consecutive year of dividend growth.

Over the last five years, dividends have grown at a compounded annual growth rate of 6.4%. Additionally, the $3.0 billion share repurchase authorization, effective from Jan. 1, 2024, through Dec. 31, 2026, reflects the company’s strong financial position and ongoing commitment to enhancing shareholder value.

RSG: Key Risks to Watch

Republic Services is facing increasing challenges related to the rising cost of operations. In 2022, the cost was $8.2 million, which rose to $8.9 million in 2023, reflecting an upward trend. In 2024, costs rose 4.6% year over year, signaling ongoing pressures on the company’s operational expenses. At the end of 2025, the same increased 2.9% year over year. This rise may be attributed to factors such as inflation, higher labor costs or rising material expenses, which impact RSG’s bottom line.

The company ended 2025 with a current ratio (a measure of liquidity) of 0.64. A current ratio greater than 1 is generally considered desirable, as it indicates that the company has sufficient assets to meet its short-term obligations.

RSG's Zacks Rank

Republic Services currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Stocks to Consider

Some top-ranked stocks for investors’ consideration are Dave Inc. DAVE and Maximus MMS.

Dave currently sports a Zacks Rank of 1. The company has an expected earnings growth rate of more than 100% and 5.9% for 2026 and 2027, respectively.

DAVE has a mixed earnings surprise history as it has surpassed the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 74.65%.

Maximus carries a Zacks Rank of 2 (Buy). MMS has an expected earnings growth rate of 14.4% and 1.2% for fiscal 2026 and 2027, respectively.

The company has an encouraging earnings surprise history as it has surpassed the Zacks Consensus Estimate in three of the trailing four quarters, missing in the remaining one, delivering an average earnings surprise of 25.5%.

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This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research