3 Reasons to Sell RSG and 1 Stock to Buy Instead

Anthony Lee Mon, September 28, 2026 at 1:58 PM EDT 3 min read **

• RSG
• ^GSPC

3 Reasons to Sell RSG and 1 Stock to Buy Instead Since March 2026, Republic Services has been in a holding pattern, posting a small loss of 4.1% while floating around $212.60. The stock also fell short of the S&P 500's 21.4% gain during that period.

Is now the time to buy Republic Services, or should you be careful about including it in your portfolio? Dive into our full research report to see our analyst team's opinion, it's free.

Why Is Republic Services Not Exciting?

We don't have much confidence in Republic Services. Here are three reasons why RSG doesn't excite us, plus one stock we'd rather own.

1. Lackluster Revenue Growth

We at StockStory place the most emphasis on long-term growth, but within industrials, a stretched historical view may miss cycles, industry trends, or a company capitalizing on catalysts such as a new contract win or a successful product line. Republic Services's recent performance shows its demand has slowed as its annualized revenue growth of 4.2% over the last two years was below its five-year trend. We're wary when companies in the sector see decelerations in revenue growth, as it could signal changing consumer tastes aided by low switching costs.

Republic Services Year-On-Year Revenue Growth

2. Sales Volumes Stall, Demand Waning

Revenue growth can be broken down into changes in price and volume (the number of units sold). While both are important, volume is the lifeblood of a successful Waste Management company because there's a ceiling to what customers will pay.

Over the last two years, Republic Services failed to grow its units sold. This performance was underwhelming and implies there may be increasing competition or market saturation. It also suggests Republic Services might have to lower prices or invest in product improvements to accelerate growth, factors that can hinder near-term profitability.

Republic Services Units Sold

3. Projected Revenue Growth Is Slim

Forecasted revenues by Wall Street analysts signal a company's potential. Predictions may not always be accurate, but accelerating growth typically boosts valuation multiples and stock prices while slowing growth does the opposite.

Over the next 12 months, sell-side analysts expect Republic Services's revenue to rise by 4.8%, close to its 9.9% annualized growth for the past five years. This projection is underwhelming and suggests its newer products and services will not catalyze better top-line performance yet.

Final Judgment

Republic Services isn't a terrible business, but it isn't one of our picks. With its shares lagging the market recently, the stock trades at 27.9× forward P/E (or $212.60 per share). Beauty is in the eye of the beholder, but our analysis shows the upside isn't great compared to the potential downside. We're pretty confident there are more exciting stocks to buy at the moment. We'd recommend looking at a dominant aerospace business that has perfected its M&A strategy.

Story Continues

Stocks We Would Buy Instead of Republic Services

WHILE YOU'RE HERE: Top 9 Market-Beating Stocks.** The best stocks don't just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.

But our AI platform says the party isn't over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating Stocks for Free HERE.

Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.

Terms and Privacy Policy [Privacy Dashboard ](https://guce.yahoo.com/privacy-dashboard?