The Waste Management industry is experiencing positive trends in government regulations, adoption of advanced technologies and an increasing awareness of environmental issues. Despite rising operating costs, the industry does not shy away from swift industrialization and urbanization. Per Mordor Intelligence, the global waste management sector is expected to see a 6.6% CAGR through 2031. 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 Clean Harbors, Inc. (CLH Quick QuoteCLH - Free Report) , Veolia Environnement SA (VEOEY Quick QuoteVEOEY - Free Report) and Zurn Elkay Water Solutions Corporation (ZWS Quick QuoteZWS - 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 a report by Fortune Business Insights, the Waste-to-Energy Market size is estimated to be $37.3 billion in 2025 and reach $51.7 billion by 2034, seeing a CAGR of 3.6%. The rise is expected to be fuelled by the surge in the amount of waste generation, growing waste management concerns to meet sustainable living standards and increased focus on non-fossil fuels. 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 Bright Near-Term Prospects

The Zacks Waste Removal Services industry, which is housed within the Zacks Business Services sector, currently carries a Zacks Industry Rank #103. This rank places it in the top 42% 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 & Sector Dips While S&P 500 Surges

The Zacks Waste Removal Services industry has fallen 13.8% over the past year. This dip was modest compared with the broader sector’s 22.3% decline. However, the industry lagged behind the S&P 500’s 32.4% rally.

1-Year Price Performance

Industry's Trades Pricier Than Sector, Cheaper Than S&P 500

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 11.59X compared with the S&P 500’s 18.59X and the sector’s 9.72X.

Over the past five years, the industry has traded as high as 14.67X and as low as 11.13X, the median being 13X, as the charts below show.

EV-to-EBITDA

3 Waste Removal Services Stocks to Bet On

Clean Harbors: This environmental and industrial services provider ended the first quarter of 2026 with strong momentum, backed by structural demand, prudent pricing and regulatory tailwinds across its segments. Revenue growth in its Environmental Services segment was driven by strong volume growth in project services, landfills and emergency response events, including a $10-million generating large-scale event.

CLH’s PFAS management pipeline improved on the back of regulatory advancements around “forever chemicals.” The initial anticipation around 2026 growth is 25-35%, following endorsements from the Environmental Protection Agency and the Pentagon for high-temperature incineration.

The Kimball incinerator is outpacing tonnage targets and supporting positive EBITDA growth. The Safety Kleen Sustainable Solutions segment was heavily profitable due to an increase in base oil market prices accompanied by a successful, long-term industry shift toward a high-margin “charge-for-oil” service model.

On the operational front, CLH is utilizing AI to drive efficacy, which ensures a strong balance sheet position is maintained with sufficient cash and low leverage to execute strategic, cost-effective mergers and acquisitions, and internal capital boost.

CLH 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 2026 earnings has been pinned at $8.38, up 3.7% in the past 60 days. Its shares have risen 34.3% in a year.

Price & Consensus: CLH

Veolia Environnement: This company designs and offers water, waste and energy management solutions. In the first quarter of 2026, VEOEY recorded robust growth, capturing macro and operational tailwinds that mitigated the company’s economic and geopolitical friction.

Essential environmental services witnessed strong, consistent demand, leading to 2.1% year-over-year growth in organic revenues and a 5.1% organic expansion in EBITDA. The top line gained 3.1% year over year on the back of geographic diversification outside of Europe, primarily facilitated by 7.5% growth in the United States.

In the Energy and Water segment fronts, demand was strong with Energy growing 4.1% year over year and the Water segment witnessing a 2% upside. The company’s gross efficiency gains boasted margins, thus driving EBIT 7.2% year over year.

Synergies from the Water Technology minority buyout and the acquisition of Enviropacific in Australia to solidify waste capabilities were vital growth drivers. The company is capitalizing on secular trends by expanding its footprint in high-margin sectors, mainly aiming at data centers and microelectronics by 2030.

VEOEY carries a Zacks Rank #2 at present. The Zacks Consensus Estimate for its 2026 bottom line has been kept at $1.39, moving up 3% in the past 60 days. Its shares have risen 21.9% in a year.

Price & Consensus: VEOEY

Zurn Elkay: This company offers design, procurement, manufacturing and marketing of water management solutions. ZWS delivered solid results in the first quarter of 2026, led by strong operational execution, favorable business mix and strategic initiatives. The company recorded an 11% year-over-year increase in organic core sales, driven by solid volume growth in Water Safety and Control, Flow Systems and Drinking Water that supplies the highest margin.

The company registered double-digit growth in its filtered bottle filler installed base and propelled customer adoption of its new Pro Filtration product line that features high attachment rates. ZWS experienced growth on the back of targeted regional resourcing that captured local nonresidential construction pockets and an increasing point of expansion from weather-related break-fix activities.

Adjusted EBITDA margins gained 160 basis points year over year to 26.8%, fueled by internal productivity enhancements from the Zurn Elkay Business System, structural cost efficiencies from post-merger and strategic transition toward high-margin solutions.

ZWS carries a Zacks Rank #2 at present. The Zacks Consensus Estimate for its 2026 bottom line has been pegged at $1.75, gaining 5.4% in the past 60 days. Its shares have rallied 35.5% in a year.

Price & Consensus: ZWS