Reasons Why Waste Connections (WCN) is an Attractive Pick Now

Core Viewpoint - Waste Connections (WCN) has shown strong performance over the past year and is expected to maintain this momentum, making it a compelling addition to investment portfolios [1]. Performance Overview - WCN's stock has increased by 27.3% over the past year, outperforming the industry average of 23.3% and the Zacks S&P 500 composite's rise of 25.5% [2]. Investment Ratings - WCN holds a Zacks Rank of 2 (Buy) and a VGM Score of B, indicating strong investment potential. Stocks with a VGM Score of A or B combined with a Zacks Rank of 1 or 2 are considered the best investment opportunities [3]. Earnings Estimates - In the past 60 days, one estimate for WCN's 2024 earnings has been revised upward, reflecting analysts' confidence. The Zacks Consensus Estimate for 2024 earnings has seen a slight increase [4]. Earnings Surprise History - WCN has a positive earnings surprise history, having exceeded the Zacks Consensus Estimate in the last four quarters with an average earnings surprise of 2.1% [4]. Growth Projections - Revenue growth is projected at 9.7% for 2024 and 6.9% for 2025, while earnings are expected to rise by 15.8% in 2024 and 13.6% in 2025. The long-term earnings per share growth rate is estimated at 12.9% [5]. Growth Drivers - WCN has a strong pipeline of solid waste opportunities, with expected margin expansions and operational efficiencies due to strategic shedding and non-renewals of contracts [6]. Renewable Gas Initiatives - The company is advancing its development of renewable gas (RNG) facilities, with three expected to be operational this year. These projects are anticipated to generate an additional $200 million in EBITDA by early 2026 [7].