The Waste Management industry is experiencing positive trends in government regulations, advanced technologies adoption and an increasing awareness of environmental issues. Despite rising operating costs, the industry does not shy away from swift industrialization and urbanization. Per MarketsandMarkets, the global waste management sector reached $1.2 trillion in 2024 and is expected to undergo substantial growth, reaching $1.6 trillion by 2029. The potential expansion of the global waste management sector can be attributed to better waste collection methods and rising volumes of waste in emerging markets.

Three promising stocks from the Waste Removal Services market are H2O America (HTO Quick QuoteHTO - Free Report) , Republic Services, Inc. (RSG Quick QuoteRSG - Free Report) and Montrose Environmental Group, Inc. (MEG Quick QuoteMEG - Free Report) .

About the Industry

Companies in the Zacks Waste Removal Services industry play a vital role in the collection, treatment and responsible management of diverse waste types, aiming to minimize their impacts on the environment and public health. This market is categorized into distinct segments based on the kind of waste, including industrial, commercial, domestic and agricultural waste. The Industrial waste segment has gained significance due to the ongoing industrial expansion, creating a substantial demand for efficient waste management solutions. The market encompasses Collection and Disposal services. The Disposal services segment, primarily fueled by the growing need for waste recycling to mitigate environmental impacts, stands as the primary revenue-generating category.

What's Shaping the Future of the Business Services Industry?

Rising Importance of Environmental, Social and Governance (“ESG”) Goals: Waste management is a cornerstone of ESG principles, as it helps companies improve their ESG ratings by promoting environmental sustainability, fostering social well-being and upholding good governance. Per Grand View Research, the average ESG disclosure score for the waste management industry lies at 50-60%. Embracing responsible waste management meets legal requirements and aligns with consumer and investor desires for sustainable and ethical business practices. At present, waste management is not only a duty but also a chance for businesses to showcase their dedication to ESG values, which underpin lasting success and resilience.

Technology Drives Waste Management Industry Growth: Technology has become a vital component in waste management, addressing the challenges of waste generation and environmental impacts. This transformative correlation promises a more sustainable future. For instance, AI is emerging as a crucial tool to sort waste and keep recyclable materials from going into landfills. Advancing technology results in more effective, eco-friendly waste management, lowering the ecological footprint and promoting sustainability. Waste challenges can be mitigated using technology that leads us toward responsible waste management and a cleaner planet.

Innovations in Waste-to-Energy (“WTE”)Technology Aid: WTE comprises thermal (pyrolysis, incineration and gasification) and biological solutions (composting and anaerobic digestion), which play crucial roles in sustainable waste management. This technology transforms waste into energy via methods like incineration or gasification. Per Precedence Research, a report by , the Waste-to-Energy Market size is estimated to be $48.1 billion in 2024 and reach $93 billion by 2034, seeing a CAGR of 6.8%. The rise is expected to be fueled by the surge in the amount of waste generation, growing waste management concerns to meet sustainable living standards and increased focus on non-fossil fuel. The industry holds an important position in the era of clean energy, offering a renewable energy source and addressing the mounting challenges around waste management.

Increasing Operating Costs are Concerning: Waste management is a time-consuming and complex process. It requires higher capital and operating costs to manage waste collection vehicles, bins and processing equipment, along with a huge number of workers. Such high operational expenses are anticipated to keep the bottom line of the companies in this industrial cohort under pressure.

Zacks Industry Rank Indicates Dull Near-Term Prospects

The Zacks Waste Removal Services industry, which is housed within the Zacks Business Services sector, currently carries a Zacks Industry Rank #152. This rank places it in the bottom 38% of 244 Zacks industries.

The group’s Zacks Industry Rank, which is the average of the Zacks Rank of all the member stocks, indicates a continued outperformance in the near term. Our research shows that the top 50% of Zacks-ranked industries outperform the bottom 50% by a factor of more than two to one.

Before we present a few stocks that you may want to consider for your portfolio, let us take a look at the industry’s recent stock market performance and current valuation.

Industry Outperforms Sector & Lags S&P 500

The Zacks Waste Removal Services industry has outperformed the broader sector and the S&P 500 over the past year.

The industry has rallied 14.6% compared with 9.5% growth of the broader sector and the Zacks S&P 500 composite’s 12.8% rise.

1-Year Price Performance

Industry's Current Valuation

Based on EV-to-EBITDA (enterprise value to earnings before interest, tax, depreciation and amortization), which is commonly used for valuing Waste Removal services stocks because of their high debt levels, the industry is currently trading at 13.63X compared with the S&P 500’s 16.85X and the sector’s 11.55X.

Over the past five years, the industry has traded as high as 13.85X and as low as 12.28X, the median being 13.35X, as the charts below show.

EV-to-EBITDA

3 Waste Removal Services Stocks to Keep a Close Eye on

Below, we have presented three stocks that are anticipated to grow in the near term.

H2O America: This national investor-owned network of local water and wastewater utilities is riding on its investments in infrastructure and water systems across the nation. In the first quarter of 2025, the company invested $78 million in water and wastewater utility infrastructure across four states, and it is on the way to meet the 2025 capital plan.

The company is inclined to improve operating efficiency and focus on tech advancements to manage expenses. It includes transitioning to a unified customer service system and advanced metering infrastructure investment. HTO keeps an opportunistic buyout strategy in its pockets to benefit customers and align its goal strategically and financially.

HTO’s long-term growth strategy will continue to focus on the recovery of a $2-billion 5-year capital plan that is required to maintain service reliably and high-quality water. Also, the plan is to have a strong regulatory relationship that is made on the outcomes that serve customers and capital providers.

H2O America carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. 

The Zacks Consensus Estimate for the company’s 2025 earnings has improved by a slight margin in the past 30 days. HTO shares have risen 6.7% in the year-to-date period.

Price and Consensus: HTO

Republic Services: This North American waste disposal company is on track to leverage the expanding Solid Waste Management market, which is anticipated to grow, seeing a 3% CAGR from 2025 to 2030, per Mordor Intelligence. With the majority of the top line being generated by the collection segment, the company finds itself to benefit from expected growth in municipal solid waste generation to 3.8 billion tons by 2050, according to the United Nations Environment Programme.

The company has taken massive strides toward reducing the company’s environmental impacts. To reduce fleet emissions, RSG has partnered with electric trucks, alongside 52 electric vehicles and 22 charging facilities in 2024. Commitment to electrification is an important stand taken by the company that will draw the attention of investors.

Republic Services carries a Zacks Rank #3 (Hold) at present. The Zacks Consensus Estimate for its 2025 bottom line has increased marginally in the past 30 days. RSG shares have risen 27% in the year-to-date period.

Price and Consensus: RSG

Montrose Environmental Group: This environmental service provider is benefiting from a surge in demand for its solutions due to the increasing domestic industrial activity of private sector clients. Rising opportunities due to the increasing influence of the U.S. state governments aid the company.

MEG witnessed a 14.5% year-over-year rise in the first quarter of 2025, fueled by strong organic growth in its Remediation and Reuse, and Measurement and Analysis segments. Healthy organic growth across lab and field service, coupled with contributions from buyouts in 2024, aided the Measurement and Analysis segment. The Remediation and Reuse segment benefited from robust organic growth in treatment technology revenues and contributions of acquisitions in 2024 amounting to $5.1 million.

The company’s long-term success depends on its ability to serve 6,000 clients. These clients are considered embedded partners, and Montrose Environmental Group aims to strengthen its relationships with them through an integrated business model, an emphasis on cross-selling, a commitment to technology and a focus on innovation.

Montrose Environmental Group carries a Zacks Rank #3 at present. The Zacks Consensus Estimate for its 2025 bottom line has increased more than 100% in the past 30 days. MEGshares have risen 10.4% in the year-to-date period.

Price and Consensus: MEG