We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. By pressing "Accept All" or closing out of this banner, you accept our Privacy Policy and Terms of Service, revised from time to time, and you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties. You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Reasons to Retain Waste Connections Stock in Your Portfolio Now
Read MoreHide Full Article
Waste Connections, Inc. (WCN - Free Report) has had an impressive run over the past year. The stock has gained 24%, outperforming the industry’s 20% rally.
The company has an expected long-term earnings per share (three to five years) growth rate of 12.4%. Earnings are expected to register year-over-year growth of 15.5% in 2024 and 12.2% in 2025.
Being a leading player in the waste management industry, Waste Connections will likely benefit from ongoing trends such as increasing environmental concerns, rapid industrialization, an increase in population and active government measures to reduce illegal dumping.
With the prime location of disposal sites being within competitive markets, Waste Connections has optimal asset positioning to generate higher profitability. Given the importance of and costs associated with waste transportation to treatment and disposal sites, having disposal capacity near the waste stream offers a competitive advantage and a barrier to entry.
Waste Connections has been active on the acquisition front. It follows a strategic combination of financial, market, and management criteria to evaluate opportunities from acquisitions. In new markets, it uses its initial buyout as an operating base. It seeks to strengthen the acquired operation's presence by providing additional services, adding customers, and making “tuck-in” acquisitions of other waste companies in that market or adjacent markets. In 2021, 2022 and 2023, Waste Connections completed 30, 24 and 13 acquisitions, respectively. These acquisitions significantly contributed to its revenues, with $215.39 million in 2021, $552 million in 2022 and $410.9 million in 2023.
Waste Connections consistently rewards its shareholders. In 2021, 2022, and 2023, it paid $220.2 million, $243 million, and $270.6 million in dividends, respectively. Such moves indicate the company’s commitment to create value for shareholders and underline its confidence in its business.
A Risk for WCN
Waste Connections’ current ratio (a measure of liquidity) at the end of third-quarter 2024 was pegged at 0.77, lower than the industry average of 1.00. A current ratio of less than 1 indicates that the company may have problems paying its short-term obligations.
Zacks Rank & Stocks to Consider
Waste Connections currently carries a Zacks Rank #3 (Hold).
Climb Global Solutions flaunts a Zacks Rank of 1 (Strong Buy) at present. It has a long-term earnings growth expectation of 16%. CLMB delivered a trailing four-quarter earnings surprise of 51.1%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
Qifu Technology sports a Zacks Rank of 1 at present. It has a long-term earnings growth expectation of 20.9%. QFIN delivered a trailing four-quarter earnings surprise of 12.4%, on average.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Reasons to Retain Waste Connections Stock in Your Portfolio Now
Waste Connections, Inc. (WCN - Free Report) has had an impressive run over the past year. The stock has gained 24%, outperforming the industry’s 20% rally.
The company has an expected long-term earnings per share (three to five years) growth rate of 12.4%. Earnings are expected to register year-over-year growth of 15.5% in 2024 and 12.2% in 2025.
Waste Connections, Inc. Price
Waste Connections, Inc. price | Waste Connections, Inc. Quote
Factors That Augur Well for WCN
Being a leading player in the waste management industry, Waste Connections will likely benefit from ongoing trends such as increasing environmental concerns, rapid industrialization, an increase in population and active government measures to reduce illegal dumping.
With the prime location of disposal sites being within competitive markets, Waste Connections has optimal asset positioning to generate higher profitability. Given the importance of and costs associated with waste transportation to treatment and disposal sites, having disposal capacity near the waste stream offers a competitive advantage and a barrier to entry.
Waste Connections has been active on the acquisition front. It follows a strategic combination of financial, market, and management criteria to evaluate opportunities from acquisitions. In new markets, it uses its initial buyout as an operating base. It seeks to strengthen the acquired operation's presence by providing additional services, adding customers, and making “tuck-in” acquisitions of other waste companies in that market or adjacent markets. In 2021, 2022 and 2023, Waste Connections completed 30, 24 and 13 acquisitions, respectively. These acquisitions significantly contributed to its revenues, with $215.39 million in 2021, $552 million in 2022 and $410.9 million in 2023.
Waste Connections consistently rewards its shareholders. In 2021, 2022, and 2023, it paid $220.2 million, $243 million, and $270.6 million in dividends, respectively. Such moves indicate the company’s commitment to create value for shareholders and underline its confidence in its business.
A Risk for WCN
Waste Connections’ current ratio (a measure of liquidity) at the end of third-quarter 2024 was pegged at 0.77, lower than the industry average of 1.00. A current ratio of less than 1 indicates that the company may have problems paying its short-term obligations.
Zacks Rank & Stocks to Consider
Waste Connections currently carries a Zacks Rank #3 (Hold).
A couple of better-ranked stocks in the broader Zacks Business Services sector are Climb Global Solutions, Inc. (CLMB - Free Report) and Qifu Technology, Inc. (QFIN - Free Report) .
Climb Global Solutions flaunts a Zacks Rank of 1 (Strong Buy) at present. It has a long-term earnings growth expectation of 16%. CLMB delivered a trailing four-quarter earnings surprise of 51.1%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
Qifu Technology sports a Zacks Rank of 1 at present. It has a long-term earnings growth expectation of 20.9%. QFIN delivered a trailing four-quarter earnings surprise of 12.4%, on average.