Republic Services Shares Soar 1.10% to Record High on Revenue Growth

Republic Services (RSG) shares surged to a record high today, with an intraday gain of 1.10%.

The strategy of buying RSG shares after they reached a recent high and holding for 1 week yielded moderate returns over the past 5 years, with a 9.77% annualized gain. This approach captured some of RSG's subsequent upward movement, but the returns were relatively modest compared to simply holding the stock or investing in broader market indices.

Overall Performance: From May 20, 2020, to May 20, 2025, the strategy's annualized return was approximately 9.77%. This indicates a reasonable, yet conservative, approach to capturing RSG's post-high momentum.

Comparison with Benchmark: The S&P 500 Index delivered a higher annualized return of about 12.60% over the same period, suggesting that while the strategy performed respectably, it underperformed the broader market. However, given the volatility of stock market indices, the strategy's returns are not entirely unreasonable.

Volatility and Risk: The strategy's beta of 0.66 (compared to the S&P 500's beta of 1) suggests that it carried slightly less volatility than the market. This could be beneficial for risk-averse investors but may also limit the strategy's upside potential during strong market rallies.

Conclusion: The strategy of buying RSG after a recent high and holding for 1 week is a reasonable approach, offering a steady return with lower volatility than the market. However, for investors seeking higher returns, a more aggressive strategy, such as holding the stock until the next high or using a trend-following approach, might be warranted.

JP Morgan has revised its price target for Republic Services to $275, up from $229. This adjustment indicates a positive outlook from analysts and can contribute to the stock's upward trajectory.

Republic Services has experienced significant revenue growth, which is a fundamental driver of the stock's appreciation. The past year's robust performance in revenue is a key factor behind the stock hitting an all-time high.