Strong Financial Performance and Growth Potential Justifies Buy Rating for Waste Connections

William Blair analyst Trevor Romeo has maintained their bullish stance on WCN stock, giving a Buy rating today.

Trevor Romeo has given his Buy rating due to a combination of factors that highlight Waste Connections’ strong financial performance and growth potential. The company reported impressive first-quarter results, with revenue, adjusted EBITDA, and adjusted EPS surpassing consensus expectations. This performance was driven by robust growth in collection, recycling, and E&P revenue, despite some areas slightly underperforming estimates.
Furthermore, Waste Connections demonstrated solid waste core pricing that exceeded expectations and benefited from acquisitions that contributed significantly to revenue. The company’s adjusted EBITDA margin improved year-over-year, supported by strong price-led revenue growth and efficient operations. With a promising outlook for 2025 and potential for further M&A activities, Waste Connections is positioned for continued growth. Romeo sees the company’s steady and defensive growth potential as appealing, justifying a premium valuation compared to its peers.

Based on the recent corporate insider activity of 58 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of WCN in relation to earlier this year.