Stericycle Inc . (NASDAQ:SRCL) shares have reached a new 52-week high, touching $61.97 amidst a robust performance over the past year. The company, known for its medical waste management services, has seen its stock price surge, reflecting a significant 1-year change with an impressive 49.16% increase. This milestone underscores investor confidence in Stericycle's business model and growth strategy, as the company continues to expand its services and leverage its position in the healthcare waste management industry. The 52-week high represents a notable achievement for Stericycle, signaling strong market momentum and potential for future gains.
In other recent news, Stericycle's merger with Waste Management (NYSE:WM) continues to progress despite a supplementary information request from the Competition Bureau of Canada, prolonging the approval process. Both companies remain confident in their ability to address the bureau's inquiries promptly. The merger, which entails Stericycle becoming a wholly-owned subsidiary of Waste Management, is expected to close as early as the fourth quarter of 2024, subject to the resolution of the Canadian review and other standard closing conditions.
Analyst firms have been closely monitoring these developments. BMO Capital Markets maintained a Market Perform rating for Waste Management, while Baird retained a Neutral rating. Waste Management reported a 30% operating EBITDA margin and double-digit EBITDA growth in Q2/24, largely due to effective pricing strategies and operational efficiencies.
Stericycle shareholders have approved the merger agreement with Waste Management, a significant development in the acquisition process. The merger, which values Stericycle at around $7 billion, is expected to be completed by the fourth quarter of 2024, with an option to extend the deadline until June 3, 2026, if needed for regulatory approval. Despite a decrease in revenue, Stericycle reported an increase in adjusted earnings per share and adjusted EBITDA in Q1 2024. These are recent developments closely monitored by investors.
InvestingPro Insights
Stericycle's recent achievement of a new 52-week high is further supported by data from InvestingPro. The company's stock has shown remarkable strength, with a 49.82% price total return over the past year, aligning closely with the article's reported 49.16% increase. This performance is part of a broader upward trend, as evidenced by a substantial 38.76% price total return over the last six months.
InvestingPro Tips highlight that Stericycle is trading near its 52-week high, corroborating the article's main focus. Additionally, the stock generally trades with low price volatility, which may appeal to investors seeking stability alongside growth. However, it's worth noting that Stericycle is trading at a high P/E ratio relative to near-term earnings growth, with a PEG ratio of 2.37, suggesting the stock may be priced at a premium.
For investors looking to delve deeper into Stericycle's financial health and market position, InvestingPro offers 11 additional tips, providing a comprehensive analysis to inform investment decisions.
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