12 Best Waste Management Stocks to Invest In Now

3. Waste Connections, Inc. (NYSE:WCN)

Number of Hedge Fund Investors: 49

As a fully integrated waste carrier, Waste Connections, Inc. (NYSE:WCN) uses its extensive network of collection routes to maintain significant control over the waste stream, moving trash from commercial, industrial, and residential end markets to its valuable disposal properties. Its secondary and rural market strategy has lower competition and higher profit margins than larger, urban-focused competitors Waste Management and Republic Services. Moreover, the firm has great pricing power, which is a result of its wide economic moat. The business has been able to protect profit margins in the present inflationary climate because of its pricing power.

The firm’s fourth-quarter 2024 revenue climbed 11% year on year, with strong pricing and acquired revenue more than offsetting reduced volumes. The adjusted EBITDA margin, which excludes a substantial charge for landfill closure, was 32.4%, up 20 basis points year on year. Thus, Waste Connections, Inc. (NYSE:WCN) is among the Best Waste Management Stocks. 

Strategic acquisitions have been a key component of Waste Connections, Inc. (NYSE:WCN)’s growth strategy. In 2024, the firm completed acquisitions that generated more than $700 million in yearly sales. Notably, the purchase of Royal Waste Services for $39 million raised the company’s presence in New York City, enabling it to oversee up to 15 waste collection zones, which is the maximum permitted by law due to overlapping service areas.

Oppenheimer raised Waste Connections, Inc. (NYSE:WCN)’s price objective to $196 from $195, retaining an Outperform rating on the stock. The firm notes that shares dipped in the low single digits Thursday after it announced Q4 adjusted EBITDA/EPS below consensus projections while anchoring FY25 expectations toward the high end of guidance, which was slightly higher than the Street.