When looking for the best stocks to buy and watch, CAN SLIM investors focus on those with rising relative price strength. One stock that fits that bill is Republic Services. The waste collection and recycling company isn't a sexy, growth-oriented tech company. But its stock has always shown strong, steady growth. That continues today as the environmental movement gathers strength. On Wednesday, the Phoenix-based company's Relative Strength (RS) Rating climbed to 83, up from 79 the day before. Republic Services stock was up 3.7% Wednesday midday, to 125.68.
The new 83 RS Rating means that Republic Services stock has outperformed 83% of all stocks over the past year. Market research shows that the best stocks often have an RS Rating of at least 80 as they launch their biggest climbs.
Republic Services Stock More Than Doubles
Republic Services stock more than doubled from a Covid market intraday low 65.37 in late March 2020 to an all-time high 145.98 on Oct. 29 last year. It consolidated early this year in sync with the market correction but lately has climbed rapidly. It rose from an intraday low 113.57 on Feb. 24 to as high as 126 Wednesday, rising above its 200-day line.
Among its other key ratings, Republic Services stock's Composite Rating is 79, and its EPS Rating is 78.
In terms of fundamentals, revenue grew 15% last quarter to $2.95 billion, its third quarter in a row of double-digit growth. The company's bottom line needs work though. Its earnings growth was just 2%, to $1.02 per share, last quarter. However, profits grew at a double-digit rate the prior three quarters.
Looking For The Best Stocks To Buy And Watch? Start Here
Republic Services stock is now considered extended and out of buy range after clearing a 113.38 buy point in a first-stage flat base. See if the stock forms a new pattern or follow-on buying opportunity like a three-weeks tight or pullback to the 50-day or 10-week moving average.
Republic Services stock earns the No. 8 rank among its peers in the Pollution-Control industry group, according to IBD Stock Checkup. Evoqua Water Tech and Casella Waste Systems are among the group's highest-rated stocks.
When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength.
This unique rating measures market leadership by showing how a stock's price action over the last 52 weeks measures up against that of other stocks on the major indexes.
