10 Best Waste Management Stocks to Buy According to Analysts

4. Montrose Environmental Group, Inc. (NYSE:MEG)

Market cap as of November 22, 2024: $645.54 Million

Number of Hedge Fund Holders: 18

Stock Upside Potential: 94.47%

Montrose Environmental Group, Inc. (NYSE:MEG) is one of the best waste management stocks to buy, as it offers end-to-end solutions for addressing environmental issues. Its  Measurement and Analysis segment tests and analyzes air, water, and soil to determine concentrations of contaminants.

Montrose Environmental Group, Inc. (NYSE:MEG) is experiencing strong demand for its comprehensive suite of integrated solutions, which have been the catalyst behind solid performance and record results. The 190 basis points of margin improvement, record quarterly revenues, and consolidated adjusted earnings in the third quarter underscore the alignment of in-demand, higher-margin products with financial and strategic objectives.

Montrose Environmental Group, Inc. (NYSE:MEG) reported results for Q3 2024 on November 6 and logged a revenue of $178.7 million, a 6.4% increase over the year before. The company’s record Consolidated Adjusted EBITDA of $28.3 million reflected strong organic growth and successful acquisitions. With an emphasis on strategic capital allocation, deleveraging, and cash flow generation, Montrose reiterated its 2024 revenue guidance.

Baron Discovery Fund stated the following regarding Montrose Environmental Group, Inc. (NYSE:MEG) in its Q2 2024 investor letter:

“Montrose Environmental Group, Inc. (NYSE:MEG) a leading environmental solutions provider (consulting, testing and remediation), outperformed during the quarter. The company reported a solid quarter driven by strong organic growth as the company is benefiting from both secular trends as well as regulatory tailwinds. During the quarter, the EPA finalized the maximum contaminant levels for PFAS (a so-called “forever chemical”) in water supplies which is expected to be a catalyst for increased remediation spending. Montrose is likely to benefit as it has proprietary equipment to enable PFAS remediation. Adding to organic growth prospects, Montrose sees a robust market for acquisitions and the company did a small equity raise early in the quarter to execute on opportunities. We believe that Montrose can generate over 20% cash flow growth per year for the next several years.”