Waste Connections Hits 52-Week High On Balanced Growth
Zacks Investment Research | May 25, 2017 09:18PM ET
Shares of waste management services provider Waste Connections Inc. (NYSE:WCN) scaled a new 52-week high of $94.15 during yesterday’s trading session, before closing a tad lower at $93.80 for a solid year-to-date return of 37.6%. Barring minor hiccups, Waste Connections’ share prices have steadily been on an uptrend since October last year.
Despite its strong price appreciation, this Zacks Rank #2 (Buy) stock has room for further growth with long-term earnings growth expectation of 15.8%.
Growth Drivers
Waste Connections typically targets secondary and rural markets to garner a higher local market share, which would be difficult to attain in more competitive urban markets. In certain niche markets, like E&P (exploration & production) waste treatment and disposal, early mover advantage in certain rural basins play a key role in improving market positioning and generating higher financial returns, given the limited availability of existing third-party-owned waste disposal alternatives. The company focuses on increasing market penetration and offering additional services to capitalize on future drilling opportunities in these areas.
Waste Connections also aims to leverage its franchise-based platforms to expand customer base beyond the exclusive market territories. As customers are added in existing markets, revenue per routed truck rises, which in turn increases collection efficiencies and profitability.
Waste Connections, Inc. Price and Consensus
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