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Here's Why Investors Must Hold WCN Stock in Their Portfolios Now
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Key Takeaways
WCN benefits from rising waste-management demand, with revenues expected to reach $10.09B.
WCN's 5.7% core price growth and acquisitions support revenues, margins and its raised 2026 outlook.
WCN faces $635.3M in closure liabilities and a 0.67 current ratio, raising cash flow and liquidity concerns.
Waste Connections (WCN - Free Report) shares have gained 14.2% in the past year, beating the industry and the Zacks S&P 500 Composite’s 3.4% and 11.1% rise, respectively.
1-Year Share Price Performance
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for 2026 top line is pegged at $10.1 billion, suggesting 6.6% year-over-year growth. It is further expected to gain 6.3% in 2027.
For 2026 earnings per share, the consensus mark is pinned at $5.7, indicating 10.7% year-over-year growth. The anticipated growth rate for 2027 is 8.8%.
Factors That Augur Well for WCN’s Success
Global Waste-Management Market Expansion: Per a Grand View Research report, the global waste-management market is anticipated to see a 6% CAGR through 2033, driven by rising waste generation, urbanization, stricter environmental regulations, and increased adoption of recycling and waste-to-energy technologies. These factors support the company’s growth strategy, prompting management to expect top-line revenues of nearly $10.09 billion.
Pricing Power Aids Top Line: WCN’score price rose 5.7% and yield increased 4.5% during the nine months ended Sept. 30, 2026, while surcharges provided marginal support. Its AI-enabled pricing tool is expected to enhance customer-level decisions and optimize yield. Pricing execution contributed to the 20-basis-point expansion in underlying adjusted EBITDA margin despite higher fuel costs. Sustained pricing above inflation should support organic growth, margins and cash flow.
Buyouts Drive Revenues: Waste Connections leverages buyouts as a means to repeatable growth because initial purchases provide operating bases for added services, customers and tuck-in transactions. For 2025, acquisitions increased revenues by $387.9 million; acquisitions net of divestitures accounted for $377.2 million in incremental revenues. During the nine months ended Sept. 30, 2026, completed acquisitions represented about $130 million in annualized revenues. Management expects additional buyouts to provide an upside to the company’s raised 2026 outlook.
Risks Faced by Waste Connections
Closure Cost Limits Cash Flow: WCN’s closure and post-closure liabilities increased to $635.3 million as of Sept. 30, 2026. For the first nine months of 2026, the company registered $132 million in adjustments to liabilities. Chiquita Canyon is also expected to follow a decelerating curve. Although management expects that cash impact to decline in 2027, landfill-related estimate changes remain a recurring risk to earnings and cash conversion.
Weak Liquidity: WCN's current ratio during the third quarter of 2026 was 0.67, moving up a little from the preceding quarter’s 0.66. Despite this marginal improvement, a current ratio of less than 1 does not bode well with investors. We expect this position to limit the company’s short-term debt payment capabilities.
WCN’s Zacks Rank & Stocks to Consider
The company currently has a Zacks Rank of #3 (Hold).
Ingram Micro Holding has a long-term earnings growth expectation of 12.3%. INGM delivered a trailing four-quarter earnings surprise of 10.7%, on average.
Climb Global Solutions has a long-term earnings growth expectation of 18%. CLMB delivered a trailing four-quarter earnings surprise of 4.4%, on average.
View the Zacks #1 Rank List
Image: Bigstock
Here's Why Investors Must Hold WCN Stock in Their Portfolios Now
Key Takeaways
Waste Connections (WCN - Free Report) shares have gained 14.2% in the past year, beating the industry and the Zacks S&P 500 Composite’s 3.4% and 11.1% rise, respectively.
1-Year Share Price Performance
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for 2026 top line is pegged at $10.1 billion, suggesting 6.6% year-over-year growth. It is further expected to gain 6.3% in 2027.
For 2026 earnings per share, the consensus mark is pinned at $5.7, indicating 10.7% year-over-year growth. The anticipated growth rate for 2027 is 8.8%.
Factors That Augur Well for WCN’s Success
Global Waste-Management Market Expansion: Per a Grand View Research report, the global waste-management market is anticipated to see a 6% CAGR through 2033, driven by rising waste generation, urbanization, stricter environmental regulations, and increased adoption of recycling and waste-to-energy technologies. These factors support the company’s growth strategy, prompting management to expect top-line revenues of nearly $10.09 billion.
Pricing Power Aids Top Line: WCN’score price rose 5.7% and yield increased 4.5% during the nine months ended Sept. 30, 2026, while surcharges provided marginal support. Its AI-enabled pricing tool is expected to enhance customer-level decisions and optimize yield. Pricing execution contributed to the 20-basis-point expansion in underlying adjusted EBITDA margin despite higher fuel costs. Sustained pricing above inflation should support organic growth, margins and cash flow.
Buyouts Drive Revenues: Waste Connections leverages buyouts as a means to repeatable growth because initial purchases provide operating bases for added services, customers and tuck-in transactions. For 2025, acquisitions increased revenues by $387.9 million; acquisitions net of divestitures accounted for $377.2 million in incremental revenues. During the nine months ended Sept. 30, 2026, completed acquisitions represented about $130 million in annualized revenues. Management expects additional buyouts to provide an upside to the company’s raised 2026 outlook.
Risks Faced by Waste Connections
Closure Cost Limits Cash Flow: WCN’s closure and post-closure liabilities increased to $635.3 million as of Sept. 30, 2026. For the first nine months of 2026, the company registered $132 million in adjustments to liabilities. Chiquita Canyon is also expected to follow a decelerating curve. Although management expects that cash impact to decline in 2027, landfill-related estimate changes remain a recurring risk to earnings and cash conversion.
Weak Liquidity: WCN's current ratio during the third quarter of 2026 was 0.67, moving up a little from the preceding quarter’s 0.66. Despite this marginal improvement, a current ratio of less than 1 does not bode well with investors. We expect this position to limit the company’s short-term debt payment capabilities.
WCN’s Zacks Rank & Stocks to Consider
The company currently has a Zacks Rank of #3 (Hold).
Some better-ranked stocks from the broader Zacks Business Services sector are Ingram Micro Holding Corporation (INGM - Free Report) and Climb Global Solutions (CLMB - Free Report) , each currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Ingram Micro Holding has a long-term earnings growth expectation of 12.3%. INGM delivered a trailing four-quarter earnings surprise of 10.7%, on average.
Climb Global Solutions has a long-term earnings growth expectation of 18%. CLMB delivered a trailing four-quarter earnings surprise of 4.4%, on average.