5 Best Waste Management Stocks to Buy Now

In this article, we discuss 5 best waste management stocks to buy now. If you want to read our detailed discussion on the waste management industry, head over to 12 Best Waste Management Stocks to Buy Now.

5. GFL Environmental Inc. (NYSE:GFL)

Number of Hedge Fund Holders: 27

GFL Environmental Inc. (NYSE:GFL) is one of the best waste management stocks. It provides environmentally responsible services for managing non-hazardous solid waste in Canada and the United States. The company’s services include solid waste management, liquid waste management, and soil remediation. This refers to tasks like collecting, transporting, transferring, recycling, and disposing of waste for municipalities, residents, and businesses. On November 1, GFL Environmental Inc. (NYSE:GFL) reported a Q3 non-GAAP EPS of $0.32 and a revenue of $1.89 billion, outperforming market estimates by $0.12 and $540 million, respectively.

According to Insider Monkey’s second quarter database, 27 hedge funds were bullish on GFL Environmental Inc. (NYSE:GFL), an increase from 21 in the last quarter. Ken Griffin’s Citadel Investment Group held the top position in the company, with over 3.3 million shares worth $129.08 million.

Ave Maria Focused Fund made the following comment about GFL Environmental Inc. (NYSE:GFL) in its Q2 2023 investor letter:

“GFL Environmental Inc. (NYSE:GFL) is the fifth-largest position and was up 32.8% YTD. GFL has closed two of three announced transactions for the divesture of non-core assets. The closing of the third transaction is expected imminently, which will allow the company to deleverage as planned. The operational performance of GFL continues to be impressive since its IPO in 2020.”

4. Casella Waste Systems, Inc. (NASDAQ:CWST)

Number of Hedge Fund Holders: 28

Casella Waste Systems, Inc. (NASDAQ:CWST) functions as a solid waste services provider in the northeastern region of the United States. The company is involved in resource management services, with a focus on solid waste collection, disposal, transfer, recycling, and organics services. It is one of the best waste management stocks to buy.

On September 15, Goldman Sachs assigned Casella Waste Systems, Inc. (NASDAQ:CWST) stock a Buy rating. According to Goldman Sachs, Casella Waste Systems, Inc. (NASDAQ:CWST) is expected to experience significant earnings growth, with earnings per share increasing from $1.10 this year to $1.46 in 2024. Additionally, they anticipate a 16% growth in revenue, moving from $1.27 billion to $1.48 billion over this period.

According to Insider Monkey’s second quarter database, 28 hedge funds were bullish on Casella Waste Systems, Inc. (NASDAQ:CWST). This number increased from the previous quarter when 14 funds had invested in the stock. Ophir Asset Management is the largest stakeholder of the company, with 284,339 shares worth $25.72 million.

The London Company SMID Cap Strategy made the following comment about Casella Waste Systems, Inc. (NASDAQ:CWST) in its Q3 2023 investor letter:

“Initiated: Casella Waste Systems, Inc. (NASDAQ:CWST) – CWST is the 5th largest waste company in the U.S., and it’s the #1 player in the dense Northeast. CWST is vertically integrated and has significant rural market exposure (~70%) versus its peers. The Northeast hasn’t approved a new landfill permit in 30 years, so the scarcity value of landfills combined with CWST’s vertical integration has given it significant pricing power. We’re attracted to CWST’s leading position in a stable business with high degree of recurring revenue. It has low leverage and is family owned. Plus, as a smaller player in a consolidating industry, CWST could possibly be acquired by a large player in the future.”

3. Republic Services, Inc. (NYSE:RSG)

Number of Hedge Fund Holders: 37

Republic Services, Inc. (NYSE:RSG) provides a range of environmental services across the United States. The company’s activities involve the collection and processing of recyclables, solid waste, and industrial waste. Republic Services, Inc. (NYSE:RSG) is responsible for transporting and safely disposing of both non-hazardous and hazardous waste materials. On October 27, Republic Services, Inc. (NYSE:RSG) declared a $0.535 per share quarterly dividend, in-line with previous. The dividend is to be paid on January 16, 2024 to shareholders of record as of January 2.

According to Insider Monkey’s second quarter database, 37 hedge funds were bullish on Republic Services, Inc. (NYSE:RSG), in contrast to the prior quarter when 40 funds had invested in the stock. Ian Simm’s Impax Asset Management held the largest position in the company, with 2.35 million shares valued at $360.52 million.

The London Company Large Cap Strategy made the following comment about Republic Services, Inc. (NYSE:RSG) in its second quarter 2023 investor letter:

“Initiated: Republic Services, Inc. (NYSE:RSG) – RSG is the 2nd largest waste management company in North America. It generates consistent, predictable cash flows with over 80% of its revenues being annuity-like. RSG holds almost 25% of the landfill capacity in the U.S. Industry consolidation and the limited availability of landfills, on top of high transportation costs, have created local duopolies for landfill owners in their respective markets and increased returns. We’re attracted to RSG’s leading position in a stable business with a high degree of recurring revenue, and we believe the company is at an inflection point with its pricing strategy and landfill asset utilization. RSG has a solid balance sheet along with an experienced and shareholder friendly management team.”

2. Waste Management, Inc. (NYSE:WM)

Number of Hedge Fund Holders: 39

Waste Management, Inc. (NYSE:WM) provides environmental solutions in the United States and Canada. The company’s services include waste and recyclable material collection, involving the pickup and transportation of these materials from their source to facilities like transfer stations, material recovery facilities, or disposal sites. It is one of the best waste management stocks. On November 7, Waste Management, Inc. (NYSE:WM) declared a $0.70 per share quarterly dividend, in-line with previous. It is to be paid on December 15 to shareholders of record as of December 1.

According to Insider Monkey’s second quarter database, 39 hedge funds were bullish on Waste Management, Inc. (NYSE:WM), compared to 43 funds in the last quarter. Michael Larson’s Bill & Melinda Gates Foundation Trust is the leading position holder in the company, with over 35.2 million shares valued at $6.1 billion.

Here is what Diamond Hill Large Cap Fund has to say about Waste Management, Inc.(NYSE:WM) in its Q1 2022 investor letter:

“We also initiated a position in Waste Management (NYSE:WM), one of the largest providers of waste collection services in the US. We believe it is a high-quality business with ownership of key landfill assets that provide pricing power over the long term. Its stock was trading at a discount to our estimate of intrinsic value due to short-term market concerns over an increase in growth investments—we expect these investments to be value-creating over the long term.”

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

Number of Hedge Fund Holders: 41

Waste Connections, Inc. (NYSE:WCN) engages in managing non-hazardous waste, providing services for its collection, transfer, responsible disposal, and resource recovery in the United States and Canada. The company also operates transfer stations, where waste is received, compacted, and loaded for transportation to landfills or treatment facilities. Waste Connections, Inc. (NYSE:WCN) is one of the best waste management stocks to buy. On October 25, Waste Connections, Inc. (NYSE:WCN) reported a Q3 non-GAAP EPS of $1.17 and a revenue of $2.07 billion, outperforming Wall Street estimates by $0.04 and $10 million, respectively.

On October 26, Waste Connections, Inc. (NYSE:WCN) declared a C$0.285 per share quarterly dividend, an increase of 11.8% from the previous dividend of C$0.255. The dividend is to be paid on November 28 to shareholders of record as of November 8.

According to Insider Monkey’s second quarter database, 41 hedge funds were bullish on Waste Connections, Inc. (NYSE:WCN), up from 35 in the preceding quarter. Henry Ellenbogen’s Durable Capital Partners is the top shareholder of the company, with 2.2 million shares worth $315.22 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.”

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