Republic Services Inc.
There are few sectors less sexy that trash and recycling. The sector is dominated by two primary companies, with Republic Services Inc. (RSG) having the second largest market share of the sector behind Waste Management (WM). The trash sector enjoys steady demand regardless of overall economic conditions, and with high barriers of entry the leaders do not have to worry about new companies sweeping in and taking over market share. RSG has enjoyed steady stock appreciation over the last year, and shares hit a record high in September. The company has grown earnings by 4.5% per annum over the last five years, and analysts expect 10.9% average earnings growth over the next five years. The stock trades at $63.45, and analysts have an average price target of $68.60 on the stock, suggesting 8.2% upside from its current level.
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