Reasons to Retain Waste Connections Stock in Your Portfolio Now

Waste Connections, Inc. WCN has had a decent run over the past year. The stock has gained 8.2%, outperforming the industry’s 6.3% rally.The company has an expected long-term earnings per share (three to five years) growth rate of 11.6%. Earnings are expected to register year-over-year growth of 10% in 2025 and 14% in 2026.Factors That Augur Well for WCNBeing a leading player in the waste management industry, Waste Connections will likely benefit from ongoing trends such as increasing environmental concerns, rapid industrialization, an increase in population and active government measures to reduce illegal dumping.With the prime location of disposal sites being within competitive markets, Waste Connections has optimal asset positioning to generate higher profitability. Given the importance and costs associated with waste transportation to treatment and disposal sites, having disposal capacity near the waste stream offers a competitive advantage and a barrier to entry.Waste Connections, Inc. Revenue (TTM) Waste Connections, Inc. revenue-ttm | Waste Connections, Inc. QuoteWaste Connections has been active on the acquisition front. It follows a strategic combination of financial, market and management criteria to evaluate opportunities from acquisitions. In new markets, it uses its initial buyout as an operating base and seeks to strengthen the acquired operation's presence by providing additional services, adding customers and making “tuck-in” acquisitions of other waste companies in that market or adjacent markets.In 2024, 2023, 2022 and 2021, Waste Connections completed 24, 13, 24 and 30 acquisitions, respectively. These acquisitions significantly contributed to its revenues, with amounts of $529 million in 2024, $410.9 million in 2023, $552 million in 2022 and $215.39 million in 2021.Waste Connections is consistent in rewarding its shareholders. In 2024, 2023, 2022 and 2021, WCN paid $302.3 million, $270.6 million, $243 million and $220.2 million in dividends, respectively. Such moves indicate the company’s commitment to creating value for shareholders and underline its confidence in its business.A Risk for WCNWaste Connections' current ratio (a measure of liquidity) at the end of fourth-quarter 2024 was pegged at 0.65, lower than the industry average of 0.93 and had declined 16.3% from the preceding quarter. A current ratio of less than 1 indicates that the company may have problems paying off its short-term obligations.WCN’s Zacks Rank & Stocks to ConsiderWCN currently carries a Zacks Rank #3 (Hold).Some better-ranked stocks from the broader Zacks Business Services sector are AppLovin APP and PagSeguro Digital Ltd. PAGS, each carrying a Zacks Rank of 2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.AppLovin has a long-term earnings growth expectation of 20%. APP delivered a trailing four-quarter earnings surprise of 23.5%, on average.PagSeguro Digital has a long-term earnings growth expectation of 13.6%. PAGS delivered a trailing four-quarter earnings surprise of 9.3%, on average.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.3% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Waste Connections, Inc. (WCN): Free Stock Analysis Report AppLovin Corporation (APP): Free Stock Analysis Report PagSeguro Digital Ltd. (PAGS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks