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Reasons Why Waste Connections (WCN) is an Attractive Pick Now
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Waste Connections (WCN - Free Report) is a non-hazardous waste collection, transfer, disposal and resource recovery services provider that has performed well over the past year and can sustain the momentum in the near term. However, if you have not taken advantage of the share price appreciation yet, you must add the stock to your portfolio right now.
An Outperformer: A glimpse at the company’s price trend reveals that the stock has had an impressive run over the past year. Shares of Waste Connections have gained 27.3%, outperforming the 23.3% rally of the industry it belongs to and the 25.5% rise of the Zacks S&P 500 composite.
Solid Rank & VGM Score: WCN currently carries a Zacks Rank #2 (Buy) and has a VGM Score of B. Our research shows that stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 (Strong Buy) or 2, offer the best investment opportunities for investors. Thus, the company appears to be a compelling investment proposition at the moment.
Northward Estimate Revisions: One estimate for 2024 moved north in the past 60 days versus no southward revision, reflecting analysts’ confidence in the company. The Zacks Consensus Estimate for 2024 earnings has moved up marginally in the past 60 days.
Positive Earnings Surprise History: WCN has a decent earnings surprise history. The company outpaced the Zacks Consensus Estimate in the trailing four quarters. It delivered an earnings surprise of 2.1% on average.
Strong Growth Prospects: The company’s revenues for 2024 and 2025 are expected to improve 9.7% and 6.9%, respectively, on a year-over-year basis. Earnings are anticipated to increase 15.8% in 2024 and 13.6% in 2025. The company has an expected long-term (three to five years) earnings per share growth rate of 12.9%.
Growth Factors: Waste Connections possesses a robust pipeline of solid waste opportunities across its regional market. Depending on the market, multi-year margin expansions, enhancements in asset utilization and operational efficiencies are expected due to purposeful shedding and contract non-renewals.
The company continues to make progress in its development of multiple renewable gas or RNG facilities. Three of these facilities are scheduled to be operational during this year. The company estimates an incremental $200 million in EBITDA at the beginning of 2026 from the projects in development.
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Reasons Why Waste Connections (WCN) is an Attractive Pick Now
Waste Connections (WCN - Free Report) is a non-hazardous waste collection, transfer, disposal and resource recovery services provider that has performed well over the past year and can sustain the momentum in the near term. However, if you have not taken advantage of the share price appreciation yet, you must add the stock to your portfolio right now.
Waste Connections, Inc. Revenue (TTM)
Waste Connections, Inc. revenue-ttm | Waste Connections, Inc. Quote
What Makes WCN an Attractive Pick?
An Outperformer: A glimpse at the company’s price trend reveals that the stock has had an impressive run over the past year. Shares of Waste Connections have gained 27.3%, outperforming the 23.3% rally of the industry it belongs to and the 25.5% rise of the Zacks S&P 500 composite.
Solid Rank & VGM Score: WCN currently carries a Zacks Rank #2 (Buy) and has a VGM Score of B. Our research shows that stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 (Strong Buy) or 2, offer the best investment opportunities for investors. Thus, the company appears to be a compelling investment proposition at the moment.
Northward Estimate Revisions: One estimate for 2024 moved north in the past 60 days versus no southward revision, reflecting analysts’ confidence in the company. The Zacks Consensus Estimate for 2024 earnings has moved up marginally in the past 60 days.
Positive Earnings Surprise History: WCN has a decent earnings surprise history. The company outpaced the Zacks Consensus Estimate in the trailing four quarters. It delivered an earnings surprise of 2.1% on average.
Strong Growth Prospects: The company’s revenues for 2024 and 2025 are expected to improve 9.7% and 6.9%, respectively, on a year-over-year basis. Earnings are anticipated to increase 15.8% in 2024 and 13.6% in 2025. The company has an expected long-term (three to five years) earnings per share growth rate of 12.9%.
Growth Factors: Waste Connections possesses a robust pipeline of solid waste opportunities across its regional market. Depending on the market, multi-year margin expansions, enhancements in asset utilization and operational efficiencies are expected due to purposeful shedding and contract non-renewals.
The company continues to make progress in its development of multiple renewable gas or RNG facilities. Three of these facilities are scheduled to be operational during this year. The company estimates an incremental $200 million in EBITDA at the beginning of 2026 from the projects in development.
Other Stocks to Consider
Some other top-ranked stocks in the broader Zacks Business Services sector are Alithya Group (ALYAF - Free Report) and Accolade (ACCD - Free Report) .
Alithya Group currently has a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
ALYAF has a long-term earnings growth expectation of 17%. It delivered a trailing four-quarter earnings surprise of 243.8%, on average.
Accolade presently carries a Zacks Rank of 2. It has a long-term earnings growth expectation of 13%.
ACCD delivered a trailing four-quarter earnings surprise of 24.6%, on average.