Group 1 - Willdan Group (WLDN) has significantly outperformed its peers in the Business Services sector, returning approximately 156.2% year-to-date, while the average return for Business Services companies is -10.2% [4] - The Zacks Consensus Estimate for Willdan Group's full-year earnings has increased by 12.5% over the past three months, indicating a positive trend in analyst sentiment [4] - Willdan Group currently holds a Zacks Rank of 1 (Strong Buy), suggesting a strong earnings outlook compared to its peers [3] Group 2 - Willdan Group is part of the Business - Services industry, which consists of 26 individual stocks and currently ranks 43 in the Zacks Industry Rank, with an average loss of 9.6% this year [6] - Xylem (XYL), another stock in the Business Services sector, has returned 20.2% year-to-date and has a Zacks Rank of 2 (Buy) [5] - The Waste Removal Services industry, to which Xylem belongs, is ranked 97 and has seen a slight increase of 0.7% this year [6] Group 3 - Investors should continue to monitor both Willdan Group and Xylem for their potential to maintain strong performance in the Business Services sector [7]

Core Insights - Clean Harbors reported disappointing Q3 2025 results, with earnings and revenues missing estimates, leading to concerns about future performance [3][12] - The company's stock has seen a 5.5% increase over the past month, outperforming the S&P 500, but analysts are cautious about sustainability [1][2] Financial Performance - Q3 earnings were $2.21 per share, missing the Zacks Consensus Estimate by 6.8%, but up 4.3% year-over-year [3] - Total revenues reached $1.5 billion, missing estimates by 1.7%, but showing a 1.3% increase year-over-year [3] - Environmental Services segment revenues were $1.3 billion, a 2.4% increase from the previous year, while Safety-Kleen Sustainability Solutions revenues declined by 4.5% to $230.8 million [4] - Adjusted EBITDA was $320.2 million, a 6.1% increase year-over-year, but below estimates [5] Balance Sheet and Cash Flow - Cash and cash equivalents at the end of the quarter were $759.2 million, up from $600.2 million in the previous quarter [7] - Long-term debt remained flat at $2.8 billion, with net cash from operating activities at $302 million [8] Guidance and Estimates - Updated guidance for adjusted EBITDA in 2025 is $1.16-$1.18 billion, slightly down from the previous estimate [9] - Adjusted free cash flow guidance has been increased to $445-$495 million [9] - Estimates for the stock have trended downward, leading to a Zacks Rank 4 (Sell) [12] Industry Comparison - Clean Harbors operates in the Waste Removal Services industry, where competitor Waste Connections reported a 5.1% year-over-year revenue increase and a 3.5% stock gain over the past month [13] - Waste Connections has a Zacks Rank 3 (Hold) and is expected to post earnings of $1.29 per share, indicating an 11.2% year-over-year change [14]

Core Insights - Veralto reported strong Q3 2025 results, with adjusted earnings of 99 cents per share, exceeding estimates by 4.2% and increasing 11.2% year-over-year. Total revenues reached $1.4 billion, surpassing estimates by 0.6% and rising 6.9% from the previous year [2][3]. Financial Performance - The Water Quality segment generated revenues of $856 million, reflecting a 6.9% year-over-year growth. The Product, Quality & Innovation segment saw revenues of $548 million, up 6.8% year-over-year. Adjusted EBITDA was $347 million, a 6.12% increase from the prior year, although the adjusted operating EBITDA margin decreased by 20 basis points to 24.7% [3]. - Veralto ended Q3 with cash and cash equivalents of $1.78 billion, up from $1.1 billion at the end of the previous year. Long-term debt was reported at $2.67 million, a slight increase from $2.60 billion at the end of Q4 2024. The company generated $270 million in cash from operating activities, with capital expenditures of $12 million [4]. Guidance and Estimates - For Q4 2025, Veralto anticipates low single-digit revenue growth year-over-year and projects adjusted diluted earnings per share between 95 cents and 98 cents. The full-year 2025 adjusted earnings per share guidance has been raised to a range of $3.82 to $3.85, up from $3.72 to $3.80. The company also expects cash flow conversion to be approximately 100% for the full year [5][6]. - Since the earnings release, there has been an upward trend in estimates revisions for Veralto, indicating positive investor sentiment [7][10]. Industry Context - Veralto operates within the Zacks Waste Removal Services industry. Competitor Waste Management reported revenues of $6.44 billion for the quarter ended September 2025, marking a year-over-year increase of 14.9%. Waste Management's EPS for the same period was $1.98, compared to $1.96 a year ago [11].

Core Insights - Waste Management (WM) reported disappointing Q3 2025 results, with earnings and revenues missing consensus estimates [2] - The stock has seen a 5.9% increase since the last earnings report, outperforming the S&P 500 [1] Financial Performance - Adjusted earnings were $1.98 per share, missing estimates by 1.5% but up 1% year-over-year [2] - Total revenues reached $6.4 billion, slightly missing estimates but growing 14.9% from the previous year [2] - Collection segment revenues were $3.9 billion, a 3.5% increase year-over-year, but below the estimated $4.1 billion [3] - Landfill segment revenues increased 7.8% to $995 million, surpassing the estimate of $986.5 million [3] - Transfer segment revenues rose 8.5% to $396 million, beating the estimate of $391.5 million [3] - Recycling Processing and Sales segment revenues declined 13.9% to $372 million, missing the estimate of $432.3 million [3] - Renewable Energy revenues were $115 million, up 32.2% year-over-year, exceeding the estimate of $103 million [4] - Adjusted operating EBITDA was $2 billion, missing the estimate of $1.9 billion but up 15.1% year-over-year [5] - Cash generated from operating activities was $1.6 billion, with capital expenditures of $635 million and free cash flow of $821 million [6] Future Outlook - WM expects revenues of $25.275 billion for 2025 and adjusted operating EBITDA between $7.475 billion and $7.625 billion [7] - Recent estimates have shown a downward trend, indicating a potential shift in investor sentiment [8][11] Industry Context - WM is part of the Zacks Waste Removal Services industry, where Waste Connections (WCN) reported revenues of $2.46 billion, a year-over-year increase of 5.1% [12] - WCN's expected earnings for the current quarter are $1.30 per share, reflecting a year-over-year change of 12.1% [13]

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]

Core Viewpoint - The article compares two companies in the Waste Removal Services sector, H20 (HTO) and Waste Management (WM), to determine which stock is undervalued and presents a better investment opportunity [1]. Group 1: Company Rankings - H20 has a Zacks Rank of 2 (Buy), indicating a positive earnings outlook, while Waste Management has a Zacks Rank of 3 (Hold) [3]. - The Zacks Rank system emphasizes companies with positive earnings estimate revisions, suggesting HTO is likely experiencing a more favorable earnings outlook than WM [3]. Group 2: Valuation Metrics - HTO has a forward P/E ratio of 15.45, significantly lower than WM's forward P/E of 28.05, indicating HTO may be undervalued [5]. - HTO's PEG ratio is 2.36, while WM's PEG ratio is 2.60, suggesting HTO has a better valuation relative to its expected earnings growth [5]. - HTO's P/B ratio is 1.08, compared to WM's P/B of 8.94, further supporting the notion that HTO is undervalued [6]. - HTO's Value grade is A, while WM's Value grade is C, indicating a stronger value proposition for HTO [6].

Core Insights - TOMI Environmental Solutions, Inc. reported a quarterly loss of $0.02 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.01, marking a 100% earnings surprise [1] - The company generated revenues of $2.12 million for the quarter ended September 2025, missing the Zacks Consensus Estimate by 22.77% and down from $2.54 million year-over-year [2] - The stock has underperformed, losing approximately 22.9% since the beginning of the year, while the S&P 500 has gained 14.6% [3] Financial Performance - Over the last four quarters, TOMI Environmental Solutions has surpassed consensus EPS estimates only once [2] - The current consensus EPS estimate for the upcoming quarter is -$0.02 on revenues of $3.63 million, and for the current fiscal year, it is -$0.10 on revenues of $8.98 million [7] Industry Outlook - The Waste Removal Services industry, to which TOMI belongs, is currently ranked in the top 37% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact TOMI's stock performance [5] Future Expectations - The company's earnings outlook will be crucial for assessing future stock performance, particularly in light of management's commentary during the earnings call [4] - The estimate revisions trend for TOMI was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold), suggesting the stock is expected to perform in line with the market [6]

Core Insights - Quest Resource (QRHC) reported a quarterly loss of $0.02 per share, missing the Zacks Consensus Estimate of $0.01, and showing an improvement from a loss of $0.16 per share a year ago, resulting in an earnings surprise of -300.00% [1] - The company generated revenues of $63.34 million for the quarter ended September 2025, exceeding the Zacks Consensus Estimate by 6.83%, but down from $72.77 million in the same quarter last year [2] - Quest Resource shares have declined approximately 77.7% year-to-date, contrasting with the S&P 500's gain of 14.4% [3] Earnings Outlook - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the next quarter is $0.02 on revenues of $62.76 million, while for the current fiscal year, the estimate is -$0.27 on revenues of $250.03 million [7] Industry Context - The Waste Removal Services industry, to which Quest Resource belongs, is currently ranked in the top 35% of over 250 Zacks industries, indicating a favorable outlook compared to lower-ranked industries [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors or through tools like the Zacks Rank [5][6]

Core Insights - PureCycle Technologies, Inc. reported a quarterly loss of $0.44 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.25, marking a 76.00% earnings surprise [1] - The company generated revenues of $2.43 million for the quarter ended September 2025, missing the Zacks Consensus Estimate by 50.06%, compared to zero revenues a year ago [2] - The stock has underperformed the market, gaining about 0.7% since the beginning of the year, while the S&P 500 has gained 15.6% [3] Company Performance - Over the last four quarters, PureCycle Technologies has consistently failed to meet consensus EPS estimates [2] - The current consensus EPS estimate for the upcoming quarter is -$0.20 on revenues of $15.3 million, and for the current fiscal year, it is -$1.21 on revenues of $23.37 million [7] - The estimate revisions trend for PureCycle Technologies was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Waste Removal Services industry, to which PureCycle Technologies belongs, is currently ranked in the top 33% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Core Insights - GFL Environmental Inc. reported quarterly earnings of $0.17 per share, missing the Zacks Consensus Estimate of $0.19 per share, and down from $0.24 per share a year ago, representing an earnings surprise of -10.53% [1] - The company posted revenues of $1.23 billion for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 0.70%, but down from $1.48 billion year-over-year [2] - GFL Environmental shares have underperformed the market, losing about 2% since the beginning of the year compared to the S&P 500's gain of 15.1% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.12 on revenues of $1.18 billion, and for the current fiscal year, it is $0.46 on revenues of $4.75 billion [7] - The estimate revisions trend for GFL Environmental was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Waste Removal Services industry, to which GFL Environmental belongs, is currently in the top 32% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]