A Buying Opportunity for Narrow-Moat Stericycle
The medical-waste management leader is trading at a discount but will face heightened volatility in the year ahead.
Matthew Young: Narrow-moat medical-waste management leader Stericycle has faced several waves of negative investor sentiment over the past several years. Some of that's been warranted, but not all of it.
Much of the selling pressure has been driven by the emergence of painful pricing concessions in 2016 among high margin small-quantity waste-generating accounts, coupled with a string of guidance shortfalls and a lackluster performance in the noncore industrial hazardous waste division.
Matthew Young does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.