Back to top

Image: Bigstock

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

Read MoreHide Full Article

Key Takeaways

  • WCN posted 3.1% organic growth in solid waste collection in Q1 2026, driven mainly by pricing gains.
  • Waste Connections expanded AI use across pricing, routing and customer engagement initiatives.
  • WCN completed 19 acquisitions in 2025, contributing $377 million in added revenues.

Waste Connections, Inc. (WCN - Free Report) benefits from sustained revenue growth, driven by the expanding waste treatment and disposal market. New acquisitions and AI innovations support customer gains and attract investors through shareholder-friendly policies.

The company’s second-quarter 2026 earnings are expected to increase 5.4% year over year. Its 2026 and 2027 earnings are projected to rise 6.8% and 12.4%, respectively. Revenues are expected to grow 5.7% in 2026 and 6.1% in 2027.

Factors That Bode Well for WCN’s Future

Waste Connections is well-positioned to capitalize on the expansion of the global waste management market. The company’s specialized non-hazardous oilfield waste treatment, recovery and disposal services across the United States and Canada drive long-term growth.

WCN’s pricing strategy further supports its qualitative performance. Organic growth in solid waste collection, transfer and disposal reached 3.1% in the first quarter of 2026, supported primarily by pricing gains.

The company is generating operational benefits from investments in artificial intelligence and digital technologies. Its AI-driven pricing tools have improved customer retention and pricing effectiveness. WCN is increasingly deploying AI-powered systems across customer engagement, routing optimization and asset productivity initiatives.

Waste Connections actively pursues acquisitions and buyouts to boost revenue growth. Strategic acquisitions such as American Disposal Services, Groot Industries and Progressive Waste have contributed positively to WCN’s revenues. In 2023, 2024 and 2025, the company completed 13, 24 and 19 such acquisitions, respectively. These acquisitions significantly contributed to its revenues, generating $410.9 million in 2023, $529 million in 2024 and $377 million in 2025.

WCN consistently rewards its shareholders despite fluctuations in the cash position, highlighting its dedication to creating long-term value for investors. In 2023, 2024 and 2025, Waste Connections paid out $271 million, $302 million and $334 million in dividends, respectively. Consistent dividends instill confidence among its shareholders.

Risks to Watch

WCN’s current ratio (a measure of liquidity) at the end of the first quarter of 2026 was pegged at 0.69, lower than the industry average of 1.08. A current ratio below 1 often suggests that a company may not be well-positioned to meet its short-term obligations.

The company faces stiff competition from its peers. Competitors often engage in aggressive pricing to gain market share. This capital-intensive industry further includes larger and better-capitalized companies, affecting Waste Connections’ ability to invest in labor and capital resources. This creates a detrimental impact on WCN’s profitability by constricting margins.

WCN’s Zacks Rank & Stocks to Consider

Waste Connections carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

A couple of better-ranked stocks in the Business Services are FactSet Research Systems Inc. (FDS - Free Report) and TransUnion (TRU - Free Report) .

FactSet Research Systems carries a Zacks Rank #2 (Buy) at present. It has a long-term earnings growth expectation of 6.5%.

FDS' earnings beat estimates in two of the last four reported quarters and missed twice, delivering an average surprise of 0.4%.

TransUnion also holds a Zacks Rank of 2 at present. It has a long-term earnings growth expectation of 13.6%.

TRU's earnings beat estimates in each of the last four quarters, with the average surprise being 6.3%.

Zacks' 7 Best Strong Buy Stocks (New Research Report)

Valued at $99, click below to receive our just-released report predicting the 7 stocks that will soar highest in the coming month.

Click Here, It's Really Free

Published in