Here's Why You Should Retain WCN Stock in Your Portfolio Now

Waste Connections, Inc. WCN stock moved up marginally in a month against a 1% dip of the industry it belongs to and the 2% decline of the Zacks S&P 500 composite.

1-Month Share Price Performance

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The Zacks Consensus Estimate for revenues for 2026 is expected to improve 5% year over year and the same for 2027 is anticipated to gain 6.1%. The consensus mark for EPS is anticipated to increase 7% in 2026 and 13.7% in 2027.

Factors That Augur Well for WCN’s Future

Waste Connections is well-positioned to capitalize on the global waste management market expansion. Per Grand View Research, the market is expected to see a CAGR of 6% from 2026 to 2033 to reach $2.4 trillion. WCN is a key company that is anticipated to grow, banking on the rising municipal solid waste volumes, higher packaged goods usage and shorter product life cycles.

WCN has been active on the acquisition front. It considers a strategic combination of financial, market and management criteria to evaluate opportunities from buyouts. In new markets, it uses its initial acquisition as an operating base and seeks to enhance the acquired company’s operational presence by providing additional services, adding customers and making “tuck-in” acquisitions of other waste companies in that market or adjacent markets.

In 2023, 2024 and 2025, Waste Connections completed 13, 24 and 19 such acquisitions, respectively. These acquisitions significantly contributed to its revenues, with amounts of $410.9 million in 2023, $529 million in 2024 and $377 million in 2025. Some notable acquisitions made by Waste Connections include American Disposal Services, Groot Industries and Progressive Waste.

Waste Connections is consistent in rewarding its shareholders despite the fluctuations in cash position, highlighting its dedication to creating long-term value for investors. In 2023, 2024 and 2025, Waste Connections paid out $271 million, $302 million and $334 million in dividends, respectively. Consistent dividends underline the company’s commitment to returning value to shareholders.

Risks Faced by Waste Connections

WCN’s current ratio (a measure of liquidity) at the end of the fourth quarter of 2025 was pegged at 0.62, lower than the industry average of 1. The metric has decline 5% from the year-ago quarter due to rising accounts payable. A current ratio of less than 1 does not bode well with shareholders, as it indicates that the company may have problems paying off its short-term obligations.

The regulated waste collection and disposal business is characterized by very low barriers to entry. Competitors often get inclined to aggressive pricing to gain market share. This capital-intensive industry further includes larger and better-capitalized companies, affecting its ability to invest in labor and capital resources. It creates a detrimental impact on the company’s profitability by constricting margins.

Zacks Rank & Stocks to Consider

WCN carries a Zacks Rank #3 (Hold) at present.

Some better-ranked stocks from the broader Zacks Business Services sector are Acuity, Inc. AYI and Coherent Corp. COHR.

Acuity carries a Zacks Rank of 2 (Buy) at present. It has a long-term (next five years) earnings growth expectation of 10%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

AYI delivered a trailing four-quarter earnings surprise of 8%, on average.

Coherent has a Zacks Rank of 2 at present. It has a long-term earnings growth expectation of 29.9%.

COHR delivered a trailing four-quarter earnings surprise of 7.7%, on average.

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Waste Connections, Inc. (WCN): Free Stock Analysis Report

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This article originally published on Zacks Investment Research (zacks.com).

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