Republic Services ( NYSE: RSG ) and Waste Management ( NYSE: WM ) are among Thursday's biggest losers on the S&P 500, -5.1% and -4.1% respectively, as Deutsche Bank highlighted a report that showed price for old corrugated containers has declined in October.
According to Deutsche Bank, Fastmarkets RISI reported U.S. average Old Corrugated Containers pricing for October fell 51% during the past month to $38/ton, with prices collapsing 70% since July, which analyst Kyle White sees as "a clear negative for the waste stocks given lowered revenue from the sale of recycled fiber."
At the same time, White believes declining OCC prices are a positive for Graphic Packaging ( GPK ) and Sonoco Products ( SON ) given lower input costs.
( NYSE: WCN ) -5.7% , ( GPK ) -1% , ( SON ) +0.4% in Thursday's trading.
Waste Management ( WM ) is a "terrific income generation idea" with favorable dividend growth potential, Valuentum writes in an analysis posted recently on Seeking Alpha .
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Waste stocks sink as recycled fiber price collapses 70% since July