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4 Stocks to Consider From the Waste Management Industry

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The waste management industry is a beneficiary of economic health, which is currently recovering from the pandemic blues, benefiting from increased vaccination drives. The successful mass vaccination is anticipated to help the industry and its players steadily get back to their full-scale capacities.

Notably, the Zacks Waste Removal Services industry has appreciated 12.9%, year to date, compared with the S&P 500 Index’s 20.7% rally and as against the 17.3% decline of the broader Zacks Business Services sector.

The Future Looks Bright

According to Allied Market Research, the global waste management market size is anticipated to reach $2,339.8 billion by 2027 from $2,080 billion in 2019, at a CAGR of 5.5% from 2020 to 2027. While the increase in population, industrialization and urbanization remain core drivers of the industry, the government measures to check illegal dumping, technology adoption and rising use of advanced collection and recycling solutions are other catalysts.

With China discontinuing the import of much of the trash from the United States, the traditional disposal methods have struggled to manage the increasing load. In a situation like this, the use of computer technology in handling waste is expected to increase in the days to come. Further, the growing awareness among government agencies and public regarding advanced waste management solutions and the need for development of waste-to-energy solutions will likely open up market opportunities for waste management companies.

Stocks to Consider

Given the backdrop, it would be a good idea to place clean-up companies that have strong growth potential for 2021 and 2022, in your radar. We have selected four such stocks for you.

Quest Resource Holding Corporation (QRHC - Free Report) :This Texas-based provider of solutions for the reuse, recycling, and disposal of waste streams and recyclables carries a Zacks Rank #2 (Buy), currently. You can see the complete list of today’s Zacks #1 Rank stocks here.

The company has an expected earnings growth rate of more than 100% for 2021 and 40.6% for 2022. The Zacks Consensus Estimate for the current-year earnings has moved up 60% over the last 60 days. The consensus mark for the next year’s earnings has moved 43.8% north. The stock has gained a huge 147.7%, year to date.

Republic Services (RSG - Free Report) : This Arizona-based provider non-hazardous solid waste collection, transfer, disposal, recycling, and environmental services also carries a Zacks Rank #2, at present. The company has a projected earnings growth rate of 14% for 2021 and 9.4% for 2022. The Zacks Consensus Estimate for the ongoing-year earnings has moved 5.7% north in the last 60 days. The same for the next year’s earnings has moved up 5.7% as well. The stock has appreciated 28.9%, year to date.

Republic Services, Inc. Price, Consensus and EPS Surprise

Republic Services, Inc. Price, Consensus and EPS Surprise

Republic Services, Inc. price-consensus-eps-surprise-chart | Republic Services, Inc. Quote

Waste Connections (WCN - Free Report) : This Ontario-based provider of waste collection, transfer, disposal, and recycling services carries a Zacks Rank #3 (Hold). The company has an estimated earnings growth rate of 19.3% for the current year and 13.7% for the next. The Zacks Consensus Estimate has moved up 1% for the 2021 earnings and 2.3% for 2022, in 60 days’ time. The stock has jumped 25.5%, year to date.

Waste Connections, Inc. Price, Consensus and EPS Surprise

Waste Connections, Inc. Price, Consensus and EPS Surprise

Waste Connections, Inc. price-consensus-eps-surprise-chart | Waste Connections, Inc. Quote

Waste Management (WM - Free Report) : This Texas-based provider of waste management environmental services also carries a Zacks Rank #3, currently. The company’s earnings are anticipated to increase 22.1% and 11.7%, respectively, in 2021 and 2022. The Zacks Consensus Estimate has moved up 2.3% for the 2021 Earnings per share (EPS) and 2.4% for 2022, over the past 60 days. The stock has gained 30.6%, year to date.

Waste Management, Inc. Price, Consensus and EPS Surprise

Waste Management, Inc. Price, Consensus and EPS Surprise

Waste Management, Inc. price-consensus-eps-surprise-chart | Waste Management, Inc. Quote

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