After spending much of the past six months at a mediocre three-star rank, Republic Services
Many CAPS members are taking a bullish view on Republic Services. They like the earnings potential of its dirty business of hauling trash as several areas of the economy recover. And major shareholders like Warren Buffet's Berkshire Hathaway
Republic Services has been undergoing some balance sheet restructuring and cost controls, both of which will hopefully help its bottom line and improve its free cash flow going forward. In addition to residential waste collection, the company serves a number of industrial, commercial, and home construction sectors. While investors aren't sold on a strong housing recovery just yet, large homebuilders like Toll Brothers
Republic Services has also posted improving volume in its cyclical revenue streams, with improvements coming from particular areas like the auto and steel industries. A recent uptick in activity suggests those sectors could be on the mend; for instance, both Ford
Trash-hauling competitor Waste Management
Do you think Republic Services deserves its raised status? Add your thoughts in the comments box below on this page, or head over to CAPS to rate the company and check out all the information and opinions the community offers, absolutely free.
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Fool contributor Dave Mock recently upgraded his car with a flux capacitor to burn the biological waste he generates. He owns no shares of companies mentioned here. Republic Services and Waste Management are Income Investor picks. Berkshire Hathaway and Waste Management are Inside Value recommendations. Berkshire Hathaway and Ford Motor are Stock Advisor choices. The Fool owns shares of Berkshire Hathaway. The Fool's disclosure policy loves to talk trash.