Here’s Why Casella Waste Systems (CWST) Declined in Q3

Core Insights - TimesSquare Capital Management's "U.S. Small Cap Growth Strategy" reported a gross return of 2.26% and a net return of 2.01% for Q3 2025, significantly underperforming the Russell 2000 Growth Index, which returned 12.19% [1] - The fund's top five holdings include notable stocks, with a focus on companies providing essential services and infrastructure [1] Company Performance - Casella Waste Systems, Inc. (NASDAQ:CWST) is highlighted as a key stock, with a one-month return of 3.62% but a 52-week decline of 5.03% [2] - As of January 5, 2026, Casella Waste Systems, Inc. had a market capitalization of $6.357 billion, with shares closing at $100.12 [2] - The company reported revenues of $485.4 million for Q3 2025, reflecting a year-over-year increase of $73.7 million or 17.9% [4] Operational Challenges - Casella Waste Systems faced operational challenges due to slower-than-expected systems integration in newly acquired territories and the implementation of a new enterprise resource planning system, which impacted earnings [3] - Despite these challenges, the company has a history of quickly improving margins from acquisitions, and the new ERP system is expected to facilitate this improvement [3] Market Position - Casella Waste Systems is not among the top 30 most popular stocks among hedge funds, although it saw an increase in hedge fund holdings from 24 to 26 in the last quarter [4] - The investment community acknowledges the potential of Casella Waste Systems but suggests that certain AI stocks may offer greater upside potential with less downside risk [4]