Waste Connections (WCN) Gains 4.2% in 3 Months: Here's How
Waste Connections, Inc. WCN stock rallied 4.2% in the past three months compared with the 3.7% rise of the industry it belongs to.
Reasons for the Upside
Waste Connections’ performance is being driven by acquisitions, operating efficiency and an increase in prices charged to customers.
Waste Connections, Inc. Price
Waste Connections, Inc. price | Waste Connections, Inc. Quote
The company has been active on the acquisition front, following a strategic combination of financial, market and management criteria to evaluate opportunities. Acquisitions completed during and after 2021 increased revenues by $552 million for 2022. Prices charged to customers increased $541.7 million year over year in 2022. Adjusted EBITDA of $588.1 million rose 15.7% year over year.
Waste Connections is consistent in rewarding its shareholders. In 2022 and 2021, it paid $243 million and $220.2 million in dividends and repurchased shares worth $425 million and $339 million, respectively. In 2020, the company paid $199.9 million in dividends and repurchased shares worth $105.7 million. Such moves indicate its commitment to creating value for shareholders and underline its confidence in its business.
Waste Connections’earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters, delivering an average earnings surprise of 3.5%.
Zacks Rank and Stocks to Consider
Waste Connections currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Zacks Business Services sector are ICF International ICFI, Maximus MMS and Gartner IT.
For first-quarter 2023, ICF International’s earnings are expected to increase 7.6% from the year-ago quarter’s $1.41 per share. In 2023, the company’s bottom line is expected to increase 9.2% on a year-over-year basis.
The Zacks Consensus Estimate for the company’s first-quarter 2023 earnings is pegged at $1.41 per share, which has been revised 6% upward in the past 60 days. The consensus estimate for ICFI’s full-year earnings is pegged at $6.3 per share, which has been revised upward by 7.3% in the past 60 days. The company currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Maximus’s first-quarter 2023 and full-year earnings are pegged at 81 cents per share and $4.15, respectively. The consensus mark for the first quarter has been revised 12% downward in the past 60 days. The consensus estimate for full-year 2023 has been revised 7.2% upward in the past 60 days. The company currently sports a Zacks Rank #1.
The Zacks Consensus Estimate for Gartner’s first-quarter 2023 earnings is pegged at $2.04 per share. The bottom line has been revised 3% upward in the past 60 days. The consensus estimate for full-year 2023 is pegged at $9.49 per share, which has been revised slightly upward in the past 60 days. The company currently carries a Zacks Rank #2 (Buy).
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Gartner, Inc. (IT) : Free Stock Analysis Report
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Maximus, Inc. (MMS) : Free Stock Analysis Report
