Price Forecast:

Bullish Case: RSG's strong financial performance, coupled with an increasing focus on sustainability, signals long-term growth. The anticipated EPS growth can boost investor confidence, making it an attractive pick in the waste management sector.

Bearish Case: Increased competition and potential legal challenges pose significant risks to RSG's stock performance. Ongoing economic pressures may result in diminished revenue growth and investor sentiment, negatively impacting share price.

Potential Outcomes:

• 30% chance of sustained EPS growth through operational efficiency.
• 25% chance of downturn due to adverse macroeconomic impacts.
• 20% chance legal issues significantly affect reputation and revenue.
• 25% chance increased investor interest driven by sustainability initiatives.

Trading Oracle: Consider a bullish debit spread by buying RSG 210.00 Calls and selling 220.00 Calls with a near-term expiry of ~30 days. This strategy captures upside potential from the low implied volatility environment while managing risk effectively in a bullish outlook.

December 20, 2024