WM, RSG: Think Twice Before Buying These Stocks. Here’s Why
The collection and processing of trash can be an extremely profitable business. Waste Management (NYSE: WM) and Republic Services (NYSE: RSG) have dominated the space for decades now, as both names, along with municipalities, have captured a combined market share of 75% in the United States. Due to their positive, recession-resilient traits, however, both companies have attracted quite elevated multiples, which languish their investment case. For this reason, I am neutral on both names. What Makes WM and RSG Shares Attractive to Investors? With investors facing uncertainty on multiple fronts these days, companies that can produce reliable cash flows while providing growing capital returns have gained increased attention.
WM, RSG: Think Twice Before Buying These Stocks. Here’s Why
The collection and processing of trash can be an extremely profitable business. Waste Management (NYSE: WM) and Republic Services (NYSE: RSG) have dominated the space for decades now, as both names, along with municipalities, have captured a combined market share of 75% in the United States. Due to their positive, recession-resilient traits, however, both companies have attracted quite elevated multiples, which languish their investment case. For this reason, I am neutral on both names. What Makes WM and RSG Shares Attractive to Investors? With investors facing uncertainty on multiple fronts these days, companies that can produce reliable cash flows while providing growing capital returns have gained increased attention.