In 2020, United Technologies and Raytheon agreed to merge their businesses to create this new aerospace and defense powerhouse. The two-year-old merger, combined with the spin-off of the Carrier and Otis divisions in 2020, has top analysts across Wall Street expecting free cash flow to step up in a big way this year. Toss in the solid recovery in air travel and improving sentiment that could help drive the commercial aerospace business.
Shareholders receive a 2.70% dividend. Raytheon Technologies stock has a $108 price target at Goldman Sachs. The consensus is slightly higher at $109.78, but the stock closed on Tuesday at $82.68.
Republic Services
Despite the economy’s ups and downs, somebody has to pick up the trash and recyclables each week, and this is a leader in the business. Republic Services Inc. (NYSE: RSG) offers environmental services in the United States, including collection and processing of recyclable materials; collection, transfer and disposal of non-hazardous solid waste; and other environmental solutions.
The company’s collection services include curbside collection of material for transport to transfer stations, landfills or recycling processing centers; supply of recycling and waste containers; and renting of compactors. In addition, the company engages in the processing and sale of old corrugated containers, old newsprint, aluminum, glass and other materials, and in provision of landfill and transfer services.
Republic Services also offers disposal of nonhazardous solid and liquid material and in-plant services, such as transportation and logistics. It serves small-container, large-container and residential customers. As of December 31, 2021, the company operated through 356 collection operations, 239 transfer stations, 198 active landfills, 71 recycling processing centers, six saltwater disposal wells and seven deep injection wells, as well as three treatment, recovery and disposal facilities in 41 states. It also operated 77 landfill gas-to-energy and renewable energy projects and had 124 closed landfills.
Investors receive a 1.40% dividend. The Goldman Sachs price target is $175, while the consensus target was last seen at $156.86. Republic Services stock ended Tuesday trading at $146.26.
The market is fast running out of gas and will be heading into some strong headwinds, given the continued big-time inflation we saw in August. Toss in persistent high energy prices, especially when the weather soon starts to turn cold, and the aggressive interest rate hikes for the rest of the year. After the 75-basis-points rise next week, we could have an additional 100 basis points added before the year is out. So, we could be in for some strong turbulence going forward. All these stocks can weather those potential storms much better than most.
Originally posted at 24/7 Wall St.
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