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 6.2% CAGR through 2032. 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) , Clean Harbors (CLH Quick QuoteCLH - Free Report) and Concrete Pumping Holdings (BBCP Quick QuoteBBCP - 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 $38.9 billion in 2026, expected to see a 3.6% CAGR through 2034. 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 #75. This rank places it in the top 30% of 247 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 & S&P 500 Rises While Sector Plunges

The Zacks Waste Removal Services industry has moved up marginally over the past year. It outpaced the broader sector’s 12% dip but lagged the S&P 500’s 14.5% 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 12.52X compared with the S&P 500’s 17.88X and the sector’s 10.31X.

Over the past five years, the industry has traded as high as 15.31X and as low as 11.43X, the median being 13.29X, as the charts below show.

EV-to-EBITDA

3 Waste Removal Services Stocks to Bet On

H2O America: This is a water utility, processing, distribution, wholesale and retail company. HTO’s Quadvest buyout solidifies its Texas operations and expands its customer base. During the first nine months of 2026, this acquired company’s active connections gained 14% year over year, while its development pipeline supports continued customer growth. Management anticipates this buyout to deliver earnings-accretive beginning in 2028.

HTO’s capital investment plan from 2026 through 2030 amounts to $2.7 billion and is anticipated to strengthen water infrastructure and operational prowess. This plan, accompanied by the Quadvest acquisition, is expected to fuel a 13% CAGR in rate base.

The ongoing rate cases in Connecticut and Maine seek recovery of infrastructure investments. Management anticipates nearly 80% of planned CapEx through 2030 to qualify for timely regulatory recovery, further raising top-line visibility. The organic earnings growth target set by management is at 6-8%, supported by customer wins, infrastructure modernization and regulatory rate relief.

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

The Zacks Consensus Estimate for the company’s 2026 earnings has been pinned at $2.8 and has been unchanged in the past 60 days. Its shares have risen 37% in a year.

Clean Harbors: This company provides hazardous and non-hazardous waste management services. CLH benefits from rising hazardous waste volumes, prudent pricing and an upsurge in demand for comprehensive waste management solutions. A recently commenced 10-year $600 million contract and manufacturing reshoring are expected to provide a clear view of revenue.

Rising demand for Per- and Polyfluoroalkyl Substances (PFAS) remediation, water treatment and disposal services acts as a growth catalyst. Management anticipates PFAS-related revenues to increase 30% in 2026, aided by a solid project pipeline.

CLH is increasing its dedicated data center investment target to $70 million. Additional growth in revenues from an escalation in demand for chemical cleaning, cooling system maintenance and recycling services is expected.

The recent EnviroServe and ES&H buyout expands service capabilities and offers synergies from integration. Meanwhile, higher production of premium Group III base oil, favorable re-refining spreads and operational prowess boost profitability and cash flow generation.

CLH carries a Zacks Rank #2 (Buy) at present. The Zacks Consensus Estimate for its 2026 bottom line has been kept at $9.94, moving up 2.3% in the past 60 days. Its shares have risen 43.7% in a year.

Concrete Pumping Holdings: This is a concrete pumping and concrete waste management services provider. BBCP benefits from rising demand for large-scale commercial and infrastructure projects, mainly data centers. An upsurge in education activity, accompanied by utilities and energy-related construction, supports fleet utilization and top-line growth.

Robust organic growth from Eco-Pan's concrete waste management business, driven by higher volumes, effective pricing and customer wins. BBCP’s profitability is strengthened by its operating model, which diversifies its revenues as well.

The company’s U.K. operations are strengthened by Templant temporary power acquisition, further broadening its offerings. Additional support is expected from the Republic of Ireland expansion, supporting long-term growth opportunities.

Improving profitability and prudent capital allocation aid growth investments. A liquidity position of $357 million and a dip in net leverage to 3.6X support the company for organic expansion, fleet investments and strategic buyouts.

BBCP carries a Zacks Rank #2 at present. The Zacks Consensus Estimate for its 2026 bottom line has been pegged at 19 cents, rising 11.8% in the past 60 days. Its shares have rallied 58% in a year.