5 Best Waste Management Stocks to Buy Now

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

Number of Hedge Fund Holders: 39

Waste Connections, Inc. (NYSE:WCN) offers waste collection, transfer, disposal, and resource recovery services for non-hazardous materials in both the United States and Canada. Their collection services cater to a wide range of customers including residential, commercial, municipal, industrial, and exploration and production (E&P) customers. It is one of the best waste management stocks to buy now. On February 15, Waste Connections, Inc. (NYSE:WCN) reported a Q4 non-GAAP EPS of $0.89 and a revenue of $1.87 billion, topping Wall Street estimates by $0.01 and $20 million, respectively. 

On February 17, BMO Capital’s Devin Dodge maintained an Outperform rating on Waste Connections, Inc. (NYSE:WCN)’s shares while decreasing the price target from $158 to $153. The Q4 results were in line with expectations. The analyst noted that the price target adjustment is due to more conservative assumptions in the company’s valuation methodologies. However, Waste Connections, Inc. (NYSE:WCN)’s pricing is increasing, which should result in favorable EBITDA margin expansion, the analyst wrote in a research note.

According to Insider Monkey’s fourth quarter database, 39 hedge funds were bullish on Waste Connections, Inc. (NYSE:WCN), compared to 33 funds in the prior quarter. Henry Ellenbogen’s Durable Capital Partners is the largest stakeholder of the company, with 2.20 million shares worth $292.35 million. 

TimesSquare Capital made the following comment about Waste Connections, Inc. (NYSE:WCN) in its Q3 2022 investor letter:

“Waste Connections, Inc. (NYSE:WCN) provides non-hazardous waste collection, transfer, and resource recovery services in the U.S. and Canada. Their shares rose 9% after topping second quarter estimates and raising forward guidance. This was driven by better-than-expected solid waste pricing and robust growth in the E&P waste business for oil exploration companies.”