Alternative investors who want to make ethical, yet profitable investments can look to the recycling industry for opportunity. Appliance Recycling Centers of America Inc. (NASDAQ: ARCI) is a recycling company that offers turnkey solutions for dismantling and sorting of recyclable parts, metals, plastics, and electronic components. ARCI aims to reduce material waste while protecting the environment from hazardous substances that could end up in landfills and storage facilities.
Highly disposable appliances create a need for companies like Appliance Recycling. Hazardous materials such as lithium battery cells are increasingly common in appliances. Appliance Recycling seeks to reintegrate materials into the production chain and follows environmentally safe disposal practices for those that cannot be reused.
Analysts believe that Appliance Recycling is currently underpriced, due to a loss of Hazardous materials A first quarter revenue decline of -29.4% surprised the market this year. Long term, this company can grow and reverse its earnings situation. The need for appliance recycling is increasing yearly, so there is opportunity for a turnaround. Appliance Recycling made sales of $36.79 million in the 2018 fiscal year.
Investors have jumped on this stock in recent weeks, partly due to the intrinsic value of the company and its potential. There’s high risk in this stock but there could be reward for patient investors. Shares today are trading at around 50% of the 52-week peak.
- 1 Year Price Growth: 67%
- YTD Price Growth: 66%
- 3 Month Price Growth: 69%
All information is based on current and historical market data, as well as publicly available financial data. As with any financial decision, your own research is important. Stock market outcomes can never be 100% accurately predicted. Familiarity with historical data, individual industries, and individual stocks is key to developing a robust portfolio. Note that stock prices can fluctuate rapidly during trading sessions.