4 Waste Management Stocks Poised to Continue Solid Run in 2022
Zacks Investment Research | Dec 22, 2021 09:30PM ET
The pre-pandemic phase had seen clean-up companies generate stable revenues and cash flows from customers across diverse industries and pay out stable dividends, making waste management stocks robust defensive players.
However, with most business operations coming to a near standstill due to the pandemic, waste production from industrial and commercial sectors declined drastically, sending waste management companies far down their full-scale capacities. This decline was, however, partially offset by an increase in municipal waste from residential areas and medical centers. With the gradual reopening of the economy and resumption of business activities, the industry has been gathering steam lately.
h3 How Will 2022 Shape Up for Clean-Up Companies?/h3Proper disposal of medical waste remains the utmost priority to curb the spread of coronavirus. In fact, waste management companies are at an advantage as healthcare officials have to dispose of used masks, gloves, suits, syringes and other medical equipment properly to curb the spread of infection. Government initiatives as well as stringent rules and regulations to advance sustainable waste management mechanisms and put a check on illegal dumping are also expected to boost the industry in 2022.
An increase in population, industrialization and urbanization will remain key drivers of the industry as it prompts a significant rise in garbage and recycling. Also, technology adoption and the use of advanced collection and recycling solutions are expected to pick up pace. This should enhance business opportunities for waste management companies.
Investing in stocks like Republic Services (NYSE:RSG), Inc. Montrose Environmental Group, Inc. Quote
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