Industry Overview - The Waste Management industry is benefiting from positive trends in government regulations, advanced technologies, and increased environmental awareness, with the global sector reaching $1.2 trillion in 2024 and projected to grow to $1.6 trillion by 2029 [1] - The industry is categorized into segments based on waste type, including industrial, commercial, domestic, and agricultural, with industrial waste gaining significance due to ongoing industrial expansion [3] - The Disposal services segment is the primary revenue-generating category, driven by the growing need for waste recycling [3] Technological Advancements - Technology plays a crucial role in waste management, with AI emerging as a key tool for sorting waste and enhancing recycling efforts, leading to more efficient and eco-friendly practices [5] - Waste-to-Energy (WTE) technologies, including thermal and biological solutions, are expected to grow from $48.1 billion in 2024 to $93 billion by 2034, with a CAGR of 6.8% [6] ESG Considerations - Waste management is integral to Environmental, Social, and Governance (ESG) goals, helping companies improve their ESG ratings and meet legal requirements while promoting sustainable practices [4] Market Performance - The Zacks Waste Removal Services industry currently holds a Zacks Industry Rank of 90, placing it in the top 37% of 243 Zacks industries, indicating strong near-term prospects [7][8] - Over the past year, the industry has declined by 7.3%, underperforming the broader sector's growth of 13.3% and the S&P 500's 13.7% [10] Current Valuation - The industry is trading at an EV-to-EBITDA ratio of 12.67X, compared to the S&P 500's 17.94X and the sector's 10.23X, indicating a relatively attractive valuation [13] Company Highlights Xylem (XYL) - Xylem's revenue increased by 7% year over year in Q3 2025, supported by strong growth in measurement and control solutions, with a backlog of nearly $5 billion [17] - The company has an EBITDA margin exceeding 23%, with management expecting it to remain around 22-23% for the full year [18] - Xylem has a Zacks Rank of 2 (Buy) and its shares have risen by 22.1% year-to-date [20] Zurn Elkay Water Solutions Corp (ZWS) - ZWS's sales improved by 11% year over year in Q3 2025, driven by growth initiatives despite challenges in the residential market [24] - The company has a Zacks Rank of 2 and its shares have increased by 26.2% year-to-date [26] Republic Services (RSG) - RSG's revenue grew by 3.3% year over year in Q3 2025, with an adjusted EBITDA margin of 32.8%, reflecting strong pricing and operational efficiency [29] - The company is committed to fleet electrification, with plans to increase its electric vehicle fleet [31] - RSG holds a Zacks Rank of 3 (Hold) and its shares have risen by 10% year-to-date [32]