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Why Investors Should Hold Waste Connections (WCN) Stock Now
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Waste Connections, Inc. (WCN - Free Report) is benefiting from a low-overhead, highly-efficient operational structure and investor-friendly steps.
WCN has a long-term earnings growth expectation of 11.5%. The Zacks Consensus Estimate for 2023 and 2024 earnings per share indicate growth of 10.5% and 13.6% year over year to $4.22 and $4.80, respectively.
Factors That Augur Well
Waste Connections generally focuses on providing vertically integrated services from collection through the disposal of solid waste in landfills that it owns or operates. In addition, the operations are managed on a decentralized basis to place decision-making authority close to the customer, enabling WCN to identify and address customers’ needs on a real-time basis in a cost-effective manner. WCN’s low-overhead and a highly-efficient operational structure allows it to expand into geographically contiguous markets and operate in relatively small communities that its competitors may not find attractive.
Waste Connections is consistent in rewarding its shareholders. In 2022, 2021 and 2020, WCN paid out $243 million, $220.2 million and $199.9 million of dividends, respectively. In 2022, 2021 and 2020, the company repurchased shares worth $425 million, $339 million and $105.7 million, respectively.
Such moves indicate a company’s commitment to create value for its shareholders and underline its confidence in its business.
Some Risks
Waste Connections’ current ratio (a measure of liquidity) at the end of fourth-quarter 2022 was pegged at 0.74, lower than the current ratio of 0.89 at the end of the previous quarter and 0.84 reported at the end of the prior-year quarter. A decreasing current ratio is not desirable as it indicates that the company may have problems meeting its short-term debt obligations.
Some better-ranked stocks in the broader Zacks Business Services sector are Avis Budget Group, Inc. (CAR - Free Report) and ICF International, Inc. (ICFI - Free Report) .
Avis Budget currently carries a Zacks Rank #2 (Buy). CAR has a VGM score of A. Our research shows that stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 or 2, offer the best investment opportunities.
CAR delivered a trailing four-quarter earnings surprise of 78%, on average.
ICF International sport a Zacks Rank #1 at present. ICFI’s 2023 revenues and earnings are expected to have surged 10.4% and 3.6% year over year, respectively.
ICF International delivered a trailing four-quarter earnings surprise of 9.2%, on average.
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Why Investors Should Hold Waste Connections (WCN) Stock Now
Waste Connections, Inc. (WCN - Free Report) is benefiting from a low-overhead, highly-efficient operational structure and investor-friendly steps.
WCN has a long-term earnings growth expectation of 11.5%. The Zacks Consensus Estimate for 2023 and 2024 earnings per share indicate growth of 10.5% and 13.6% year over year to $4.22 and $4.80, respectively.
Factors That Augur Well
Waste Connections generally focuses on providing vertically integrated services from collection through the disposal of solid waste in landfills that it owns or operates. In addition, the operations are managed on a decentralized basis to place decision-making authority close to the customer, enabling WCN to identify and address customers’ needs on a real-time basis in a cost-effective manner. WCN’s low-overhead and a highly-efficient operational structure allows it to expand into geographically contiguous markets and operate in relatively small communities that its competitors may not find attractive.
Waste Connections is consistent in rewarding its shareholders. In 2022, 2021 and 2020, WCN paid out $243 million, $220.2 million and $199.9 million of dividends, respectively. In 2022, 2021 and 2020, the company repurchased shares worth $425 million, $339 million and $105.7 million, respectively.
Such moves indicate a company’s commitment to create value for its shareholders and underline its confidence in its business.
Some Risks
Waste Connections’ current ratio (a measure of liquidity) at the end of fourth-quarter 2022 was pegged at 0.74, lower than the current ratio of 0.89 at the end of the previous quarter and 0.84 reported at the end of the prior-year quarter. A decreasing current ratio is not desirable as it indicates that the company may have problems meeting its short-term debt obligations.
Zacks Rank and Stocks to Consider
Waste Connections currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some better-ranked stocks in the broader Zacks Business Services sector are Avis Budget Group, Inc. (CAR - Free Report) and ICF International, Inc. (ICFI - Free Report) .
Avis Budget currently carries a Zacks Rank #2 (Buy). CAR has a VGM score of A. Our research shows that stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 or 2, offer the best investment opportunities.
CAR delivered a trailing four-quarter earnings surprise of 78%, on average.
ICF International sport a Zacks Rank #1 at present. ICFI’s 2023 revenues and earnings are expected to have surged 10.4% and 3.6% year over year, respectively.
ICF International delivered a trailing four-quarter earnings surprise of 9.2%, on average.