Profit from aging baby boomers with this medical waste company. While this stock has managed to maintain its value in spite of weak markets, the growth potential for Stericycle is currently its most compelling feature.

Stericycle shares, which have been trading in the mid- to upper-40s lately, look as if they could climb back toward last year's high of 66 within two years.

3 Stocks I Saw on TV: Dan Fitzpatrick examines three stocks viewed on Fast Money. Today's stocks include Exxon, Chevron and Stericycle.
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AW and RSG just merged, consolidating further the global waste industry. A global economy means more garbage than ever. But margins are tiny in the residential and commercial waste space. The next guys to get consolidated are what I call the “garbage 2.0” stocks, the niche players with high barriers to entry and larger margins. ECOL in radioactive waste space has been around since 1952 and trades for 12x EBITDA. SRCL in the medical waste space also handles drug recalls for pharmaceuticals and given an increasingly safety-conscious FDA, has been busier than ever. CPRT at 15x EBITDA is the ebay of trashed cars (insurance companies sell them, steel salvagers buy them) and has just set up an online exchange for used cars (don’t forget cars lose 20% of their value the second they drive out of the lot, making a “new” used car always worth the price).

Medical waste. A play on a growing global economy as well as the aging baby boomer population. They not only dispose of the needles, etc at hospitals but they also handle from beginning to end drug recalls for pharmaceutical companies. A great play on an increasingly safety-conscious FDA

Don't Get Stuck With Stericycle
RealMoney.com contributor Dave Peltier says the shares of this medical-waste company are too pricey.

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3 Stocks I Saw On TV
Dan Fitzpatrick examines three stocks viewed on Fast Money and Mad Money. Today's stocks include Rydex Japanese Yen Trust, Genentech and Stericycle.

Click here to watch the video.

Earnings Stability Rating: 5. Medical-waste handler has beaten Street’s estimates on earnings for eight straight quarters. Five-year earnings growth rate: 21%.

growth

Aging boomers will require more medical services.