Here's Why Investors Must Hold WCN Stock in Their Portfolios Now

Waste Connections, Inc. WCN shares have gained 4.9% in the past three months. Meanwhile, the industry and the Zacks S&P 500 Composite have returned 2.3% and 4.2%, respectively.

3-Month Share Price Performance

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The Zacks Consensus Estimate for 2026 top line is pegged at $10 billion, suggesting 6% year-over-year growth. It is further expected to move up 5.7% year-over-year in 2027.

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For 2026 earnings per share, the consensus mark is pinned at $5.62, indicating 9.1% year-over-year growth. The anticipated growth rate for 2027 is 10.8%.

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Factors That Augur Well for WCN’s Success

Increasing Market Penetration: The company is expanding its presence within existing and neighboring markets, acquiring customers in markets wherein waste collection services are not exclusive. Management is invested in M&A to acquire solid waste businesses across competitive and exclusive markets. Over the last two years, WCN expanded the Arrowhead landfill rail network by 300% to transport waste out of the Northeast. To stretch its footprint, the company launched a rail project to collect waste from Miami-Dade County in Florida during the second quarter of 2026.

Buyouts to Strengthen Operations Presence: In 2023, 2024 and 2025, WCN acquired 13, 24 and 19 companies, respectively. These buyouts contributed $410.9 million to revenues in 2023, $529 million in 2024 and $377 million in 2025. The company acquired these companies as an operating base and seeks to bolster acquired operations’ presence by offering additional services, customers and making “tuck-in” buyouts of other waste companies in the operating markets or adjacent ones.

Shareholder-Friendly Actions: WCN rewards its shareholders consistently despite fluctuations in cash position, strengthening 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 dividend payouts allow this stock to offer a dependable payday for income-seeking investors.

Risks Faced by Waste Connections

Strict Laws & Regulations: WCN incurred millions in third-party oversight costs due to Los Angeles County during Chiquita Canyon Landfill Permit renewals. The company is required to set aside substantial financial assurance capital for long-term environmental remediation and gas management under Subtitle D Landfill Gas Management. The industry is subject to enact new or amended federal, state, and local statutes and regulations that further impose substantial capital and operational limitations.

Bleak Liquidity Position: WCN ended the second quarter of 2026 with $98 million in cash and equivalents, down from the preceding quarter’s $112 million. While the cash position weakened, the company saw a sharp rise in current debt. As of June 30, 2026, WCN's balance sheet reported $98 million in current debt, up from the preceding quarter’s $79 million.

Although the company strengthened its current asset position, its current liabilities rose 6% sequentially, resulting in a meaningful setback in WCN’s liquidity position. The company’s weak liquidity profile is highlighted by its current ratio of 0.66, down from the preceding quarter’s 0.69. Also, it sits substantially lower than the industry average of 1.02. This raises a red flag for investors, as a current ratio below 1 signals an inability to cover short-term obligations.

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WM’s Zacks Rank & Stocks to Consider

The company currently has a Zacks Rank of #3 (Hold).

Some better-ranked stocks from the broader Zacks Business Services sector are TrueBlue TBI and Vontier VNT, each currently sporting a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

TrueBlue has a long-term earnings growth expectation of 14%. TBI delivered a trailing four-quarter earnings surprise of 22.4%, on average.

Vontier has a long-term earnings growth expectation of 8.4%. VNT delivered a trailing four-quarter earnings surprise of 2.5%, on average.

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

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