Is Republic Services Stock Underperforming the Nasdaq?

Republic Services, Inc. (RSG), headquartered in Phoenix, Arizona, offers environmental services. Valued at $68.2 billion by market cap, the company provides solid waste collection services for commercial, industrial, municipal, and residential customers. It also operates transfer stations, landfills, and recycling facilities.

Companies worth $10 billion or more are generally described as “large-cap stocks,” and RSG perfectly fits that description, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the waste management industry. RSG’s market position is a strength, with a leading role in environmental services. Its vertically integrated model drives density and returns. 

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Despite its notable strength, RSG slipped 4.7% from its 52-week high of $233.77, achieved on Sep. 5, 2025. Over the past three months, RSG stock gained 7.1%, outperforming the Nasdaq Composite’s ($NASX) 1.2% dip during the same time frame. 

Shares of RSG rose 5.1% on a YTD basis but fell 4.8% over the past 52 weeks, underperforming NASX’s 14.1% YTD gains and 22.1% returns over the last year.

To confirm the bullish trend, RSG has been trading above its 50-day moving average since early June, with some fluctuations. The stock has been trading above its 200-day moving average since late June, with slight fluctuations. 

RSG lagged behind the broader market as premium valuation multiples compressed and softer volume growth weighed on investor sentiment. While the company maintained strong core pricing power and resilient free cash flow, near-term headwinds including elevated labor costs, moderating recycling commodity prices, and a cautious industrial waste environment led to decelerating earnings growth compared to historical averages.  

On Aug. 6, RSG shares closed up more than 1% after reporting its Q2 results. Its adjusted EPS of $1.85 exceeded Wall Street expectations of $1.81. The company’s revenue was $4.43 billion, beating Wall Street forecasts of $4.36 billion. RSG expects full-year adjusted EPS in the range of $7.23 to $7.28, and revenue in the range of $17.2 billion to $17.3 billion.

RSG’s rival, Waste Management, Inc. (WM) shares have taken the lead over the stock, with a 2.7% downtick over the past 52 weeks, but lagged behind the stock with marginal losses on a YTD basis.

Wall Street analysts are reasonably bullish on RSG’s prospects. The stock has a consensus “Moderate Buy” rating from the 26 analysts covering it, and the mean price target of $248.48 suggests a potential upside of 11.6% from current price levels.

On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com