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Here's Why You Should Retain WCN Stock in Your Portfolio Now

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Key Takeaways

  • Waste Connections' disciplined acquisitions added revenue, about $300M annualized deals underway in 2025.
  • WCN gained 3.1% in three months, beating an industry decline, with EPS growth expected in 2025 and 2026.
  • WCN raised its quarterly dividend 11.1% to $0.35 and returned $244M in dividends in the first nine months.

Waste Connections, Inc. (WCN - Free Report) has gained 3.1% over the past three months, against the industry’s 5.5% decline.

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The company has an expected long-term earnings per share (three to five years) growth rate of 9.80%. Earnings are expected to register year-over-year growth of 7.5% in 2025 and 10.1% in 2026.

Factors That Augur Well for WCN

Waste Connections continues to pursue an active and disciplined acquisition strategy, using a clear set of financial, market and management criteria to identify value-accretive opportunities. In new markets, the company typically establishes an operating platform through an initial acquisition and then deepens its presence by expanding services, adding customers and executing tuck-in deals in the same or adjacent markets. This approach allows Waste Connections to scale efficiently while strengthening local density and margins.

The strategy has consistently translated into meaningful revenue contributions. The company completed 30 acquisitions in 2021, 24 in 2022, 13 in 2023 and 24 in 2024, adding $215.4 million, $552.0 million, $410.9 million and $529.0 million in revenues, respectively. Momentum remains strong in 2025, with acquisitions year-to-date through the third quarter representing approximately $300 million in annualized revenues that have either closed or are under definitive agreement. This sustained acquisition cadence underscores management’s execution capability and reinforces growth visibility through both scale expansion and market consolidation.

WCN demonstrates strong confidence in its cash flow by increasing the quarterly dividend 11.1% to $0.35 per share in October 2025. The board’s practice of regularly reviewing dividends highlights a disciplined approach to capital allocation and reinforces the company’s focus on delivering steady shareholder returns.

Moreover, the company has consistently rewarded shareholders through rising dividend payments, distributing $302.3 million in 2024, $270.6 million in 2023, $243.0 million in 2022 and $220.2 million in 2021. In the first nine months of 2025, Waste Connections has already returned $244 million in cash dividends. This sustained and growing payout track record underscores management’s commitment to long-term value creation and reflects confidence in the durability of the company’s underlying business and cash-generating capacity.

WCN: Key Risk to Watch

WCN shows a clear declining trend in its current ratio (a measure of liquidity), signaling tightening short-term liquidity over time. The ratio fell from 1.37 in 2020 to 0.84 in 2021, then declined further to 0.74 in 2022, 0.68 in 2023, and 0.65 in 2024. In the third quarter of 2025, the current ratio edged up slightly to 0.67 but remains well below historical levels. This sustained decline suggests the company’s increased reliance on uninterrupted cash flows and access to external financing. This trend heightens liquidity risk, particularly during periods of elevated acquisition activity or unexpected operating pressures.

WCN’s Zacks Rank

WCN currently carries a Zacks Rank of #3 (Hold).

Stocks to Consider

A couple of better-ranked stocks from the broader Zacks Business Services sector are Byrna Technologies (BYRN - Free Report) and Veralto Corporation (VLTO - Free Report) .

Byrna Technologies currently carries a Zacks Rank of 2 (Buy). BYRN has an expected earnings growth rate of 25.8% and 33.3% for 2025 and 2026.  

BYRN has an encouraging earnings surprise history as it has surpassed the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average earnings surprise of 167.5%.

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

VLTO has an expected earnings growth rate of 8.5% and 9.2% for 2025 and 2026. The company has an encouraging earnings surprise history as it has surpassed the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average earnings surprise of 6.5%.


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