3 Waste Removal Services Stocks to Watch Amid Industry Challenges

Industry Overview - The Waste Management industry is experiencing positive trends due to government regulations, advanced technologies, and increased environmental awareness [1] - The global waste management sector reached $1.3 trillion in 2022 and is projected to grow to $2 trillion by 2030, driven by improved waste collection methods and rising waste volumes in emerging markets [1] - The industry is categorized into segments such as industrial, commercial, domestic, and agricultural waste, with industrial waste gaining significance due to ongoing industrial expansion [2] Technological Advancements - Technology plays a crucial role in waste management, with innovations like artificial intelligence improving waste sorting and recycling processes [4] - Waste-to-Energy (WTE) technologies, including thermal and biological solutions, are expected to grow from $38.4 billion in 2024 to $65.3 billion by 2029, at a CAGR of 11.2% [5] Financial Performance - The Zacks Waste Removal Services industry has outperformed the broader sector with a gain of 32.3% compared to 29.4% for the sector, but lags behind the S&P 500's 34.7% growth over the past year [9] - The industry is currently trading at an EV-to-EBITDA ratio of 12.25X, lower than the S&P 500's 19.21X and the sector's 28.81X [10] Company Highlights - Republic Services, Inc. (RSG): The company benefits from high customer loyalty, digital capabilities, and sustainability efforts, with a customer retention rate above 94% and a 5.5% share price increase in the past six months [13][14] - Clean Harbors, Inc. (CLH): Revenue growth is driven by record volumes of containerized waste and improved pricing, with shares rising 20.8% in the past six months [16][17] - Aris Water Solutions, Inc. (ARIS): The company has shown significant performance improvement, with a 16.1% share price increase in the past six months, supported by resilient volumes from long-term contracts [19][21]