Artificial intelligence is the greatest investment opportunity of our lifetime. The time to invest in groundbreaking AI is now, and this stock is a steal! AI is eating the world—and the machines behind it are ravenous. Each ChatGPT query, each model update, each robotic breakthrough consumes massive amounts of energy. In fact, AI is already pushing global power grids to the brink. Wall Street is pouring hundreds of billions into artificial intelligence—training smarter chatbots, automating industries, and b ...

We came across a bullish thesis on Waste Connections, Inc. on Monopolistic Investor’s Substack by Antoni Nabzdyk. In this article, we will summarize the bulls’ thesis on WCN. Waste Connections, Inc.'s share was trading at $167.23 as of January 29th. WCN’s trailing and forward P/E were 70.57 and 21.41 respectively according to Yahoo Finance. Inno Holdings (INHD) Ends Meme Rally on Profit-Taking Olaf Speier/Shutterstock.com Waste Connections, Inc. (WCN) operates in the competitive waste collection industr ...

Core Insights - Artificial intelligence (AI) is identified as the greatest investment opportunity of the current era, with a strong emphasis on the urgency to invest now [1][13] - The energy demands of AI technologies are highlighted, with data centers consuming as much energy as small cities, leading to concerns about power grid strain and rising electricity prices [2][3] Investment Opportunity - A specific company is positioned as a critical player in the AI energy landscape, owning essential energy infrastructure assets that will benefit from the increasing energy demands of AI [3][7] - This company is not a chipmaker or cloud platform but is described as a "toll booth" operator in the AI energy boom, collecting fees from energy exports [5][6] Financial Position - The company is noted for being debt-free and holding a significant cash reserve, amounting to nearly one-third of its market capitalization, which positions it favorably compared to other energy firms burdened with debt [8][10] - It also has a substantial equity stake in another AI-related company, providing investors with indirect exposure to multiple growth opportunities without high premiums [9][10] Market Trends - The article discusses the broader trends of onshoring driven by tariffs and the surge in U.S. LNG exports, indicating a favorable environment for the company's operations [6][14] - The influx of talent into the AI sector is expected to drive continuous innovation and advancements, reinforcing the importance of investing in AI-related companies [12] Future Outlook - The company is positioned at the heart of America's next-generation power strategy, particularly in nuclear energy, which is seen as a clean and reliable power source for the future [7][14] - The potential for significant returns is emphasized, with projections of over 100% return within 12 to 24 months for investors who act now [15][19]

Core Insights - Waste Connections, Inc. (WCN) has outperformed the industry with a 3.1% gain over the past three months, while the industry has seen a decline of 5.5% [2] - The company has an expected long-term earnings per share growth rate of 9.80%, with projected year-over-year growth of 7.5% in 2025 and 10.1% in 2026 [4] Acquisition Strategy - Waste Connections employs an active and disciplined acquisition strategy, focusing on financial, market, and management criteria to identify value-accretive opportunities [5] - The company has completed 30 acquisitions in 2021, 24 in 2022, 13 in 2023, and 24 in 2024, contributing revenues of $215.4 million, $552.0 million, $410.9 million, and $529.0 million respectively [6] - In 2025, acquisitions year-to-date are expected to represent approximately $300 million in annualized revenues, indicating strong momentum and management's execution capability [6] Dividend Policy - Waste Connections increased its quarterly dividend by 11.1% to $0.35 per share in October 2025, reflecting a disciplined approach to capital allocation [7] - The company has consistently rewarded shareholders, distributing $302.3 million in 2024, $270.6 million in 2023, $243.0 million in 2022, and $220.2 million in 2021, with $244 million returned in the first nine months of 2025 [9] Financial Performance - The company has demonstrated strong cash flow confidence through its increasing dividend payments, underscoring management's commitment to long-term value creation [9]

Core Insights - Zacks Premium offers various tools for investors to enhance their stock market engagement and confidence [1] - The Zacks Style Scores are designed to help investors identify stocks with the potential to outperform the market within a 30-day timeframe [2] Zacks Style Scores Overview - The Style Scores categorize stocks into four types: Value Score, Growth Score, Momentum Score, and VGM Score, each focusing on different investment strategies [3][4][5][6] - Value Score emphasizes identifying undervalued stocks using financial ratios [3] - Growth Score focuses on a company's financial health and future growth potential [4] - Momentum Score targets stocks with favorable price trends and earnings outlooks [5] - VGM Score combines all three styles to provide a comprehensive assessment of stocks [6] Zacks Rank and Style Scores Interaction - The Zacks Rank utilizes earnings estimate revisions to guide investors in building successful portfolios, with 1 (Strong Buy) stocks historically yielding an average annual return of +23.93% since 1988 [7][8] - To optimize returns, investors should prioritize stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B [9] - Stocks with lower ranks but high Style Scores may still face downward price pressure if earnings forecasts are declining [10] Company Spotlight: Waste Connections (WCN) - Waste Connections is an integrated solid waste services company operating in the U.S. and Canada, providing various waste management services [11] - WCN holds a Zacks Rank of 3 (Hold) and has a VGM Score of B, with a Momentum Style Score of A, indicating positive short-term performance [12] - Recent upward revisions in earnings estimates by analysts suggest a consensus estimate increase to $5.15 per share for fiscal 2025, with an average earnings surprise of +2.5% [12][13]

Company Overview - Waste Connections (WCN) is one of the largest integrated waste services companies in North America, operating in the US and Canada [1] - The company has experienced significant growth in recent years, largely due to numerous acquisitions, including a record number of deals [1] Analyst Background - The analyst has over 10 years of experience researching companies across various sectors, including commodities and technology [1] - The analyst has researched over 1000 companies and has transitioned from writing a blog to a value investing-focused YouTube channel [1] - The analyst expresses a preference for covering metals and mining stocks but is also comfortable with other industries such as consumer discretionary/staples, REITs, and utilities [1]

Group 1 - Waste Connections has filed a lawsuit against Haulla, alleging theft of confidential customer information and encouraging customers to breach contracts with Waste Connections [3][5] - The lawsuit claims Haulla accessed Waste Connections' customer portal illegally, created over 2,500 fake customer profiles, and impersonated customers to obtain sensitive pricing and service details [3][4] - Waste Connections asserts that Haulla's actions have damaged customer relationships and negatively impacted business operations [5] Group 2 - Haulla, operating under Ecube Labs, has filed for Chapter 11 bankruptcy and is involved in a separate lawsuit initiated by Waste Connections in March 2024 [6] - A Texas bankruptcy court has approved Haulla's request to borrow up to $1.5 million from its parent company to sustain operations, with an immediate borrowing of $500,000 [6] - Waste Connections has updated its complaint to include allegations against Ecube Labs Ltd., claiming it conspired with Haulla in the fraudulent activities [6]

Core Viewpoint - UBS has increased its price target for Waste Connections, Inc. from $190 to $195, maintaining a "Neutral" rating, citing steady execution and resilient fundamentals following Q3 results [1] Financial Performance - Waste Connections reported Q3 2025 revenue of $2.46 billion, up from $2.34 billion year-over-year, indicating growth [3] - Adjusted EBITDA for the same period rose to $830.3 million, aligning with the company's 2025 guidance, reflecting consistency and disciplined cost management [3] Future Outlook - UBS has adjusted its annual adjusted EBITDA forecasts for Waste Connections to $3.12 billion, $3.36 billion, and $3.70 billion for 2025, 2026, and 2027 respectively, attributing the upward revision to the company's strong performance and potential M&A activity due to pressures on smaller operators [2]

Core Insights - Shifting economics are impacting landfill gas to renewable natural gas (RNG) projects, with waste companies adjusting their RNG portfolios based on D3 RIN prices [2] - RIN prices have decreased by approximately one dollar in October compared to the previous year, leading to Jefferies lowering its long-term credit expectation from $2.50 to $2.20 [3] - Waste Connections is facing "cost creep and delays" in its RNG projects, prompting a delay in planned capital spending [4] Company-Specific Insights - Waste Connections had previously expected a 1-1 ratio between investment and earnings from RNG projects, but this has shifted to a potential 2-1 ratio due to current RIN prices around $2.25 [5] - WM plans to delay the sale of some RINs to the fourth quarter to capitalize on potential price increases [6] - Republic Services may pivot towards using landfill gas for electricity generation instead of RNG to meet rising energy demands from data centers [6] Industry Trends - Analysts attribute the decline in RIN prices to the EPA's conservative proposals regarding future credit volumes, which raises concerns about long-term demand for renewable natural gas in transportation [7] - Despite current RIN prices, waste companies can still achieve returns on their RNG investments, but may consider alternative outlets or revert to landfill gas-to-electricity projects if prices remain low [8]

Core Insights - The article highlights the author's extensive experience in financial analysis across various sectors, emphasizing expertise in market analysis, valuation models, and investment strategy [1]. Group 1: Experience and Background - The author has over 13 years of diverse financial analysis experience, particularly in the Auto, Industrials, and IT sectors [1]. - Previous roles include working in treasury for Ford and Caterpillar, as well as managing investor relations and strategic finance for a listed IT company with a market cap of approximately USD 2.5 billion [1]. - The author's background also includes experience as an equity research analyst, which has contributed to a strong understanding of business growth drivers [1].