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Waste Connections (WCN) Gains 21% in a Year: Here's How

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Waste Connections, Inc. (WCN - Free Report) has had an impressive run over the past year. The stock has rallied 20.6% in the past year compared with the 19.7% rise of the industry it belongs to.

Reasons for the Upside

Waste Connections’ performance is being driven by acquisitions, operating efficiency and an increase in prices charged to customers.

The company has been active on the acquisition front, following a strategic combination of financial, market and management criteria to evaluate opportunities. In 2022, Waste Connections completed 24 acquisitions worth $2.3 billion, contributing $552 million in incremental revenues. During 2021, 2020 and 2019, the company completed 30, 21 and 21 acquisitions, respectively.

Acquisitions contributed $215.39 million, $197.23 million and $291.93 million to revenues in 2021, 2020 and 2019, respectively. Prices charged to customers increased $541.7 million year over year in 2022. Adjusted EBITDA of $588.1 million rose 15.7% year over year.

Waste Connections has taken consistent efforts to reward its shareholders. In 2022, 2021 and 2020, the company paid $243 million, $220.2 million and $199.9 million in dividends and repurchased shares worth $425 million, $339 million and $105.7 million, respectively.

Waste Connections’ earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, delivering an average earnings surprise of 4.1%.

Zacks Rank and Stocks to Consider

The company currently carries a Zacks Rank #3 (Hold).

Investors interested in the Zacks Business Services sector can consider the following better-ranked stocks:

Green Dot (GDOT - Free Report) : GDOT currently carries a Zacks Rank #2 (Buy) and has a VGM Score of A. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The company has an impressive earnings surprise history, beating the Zacks Consensus Estimate in all the trailing four quarters, with an average surprise of 37.3%.

Maximus (MMS - Free Report) : MMS carries a Zacks Rank of 2 at present and has a VGM Score of B.

The company has an impressive earnings surprise history, beating the consensus mark in three of the trailing four quarters and missing once, the average surprise being 9.6%.


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Green Dot Corporation (GDOT) - free report >>

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Maximus, Inc. (MMS) - free report >>

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