
TSE:WCN
This summary was created by AI, based on 14 opinions in the last 12 months.
Waste Connections (WCN) is regarded as a fundamentally solid company within the waste management sector, characterized by steady earnings and growth potential. Despite its strong operational track record and disciplined management, the stock is seen as expensive, trading at a forward PE of 27x, which has made some investors cautious. Analysts agree that while WCN has avenues for growth through acquisitions and a solid market position, the current market sentiments lean towards finding more exciting investment opportunities. The potential for double-digit earnings growth and the company’s commitment to employee safety and solid cash flows provides a robust long-term investment case, yet, the stock has been facing downward pressure partly due to challenges like environmental concerns and rising fuel costs. Overall, while potentially offering good long-term returns through stability, there's a consensus that it may be best to seek a pullback before entering a position.
Involved in consolidation in the solid waste management. Did a huge US acquisition so has more volume in the US than it has in Canada. Stock hasn’t done much. He views the opportunity here as building a large-scale company in a very fragmented industry, in both Canada and US, growing revenue and earnings over time. 2.8% dividend.
(Top Pick Oct 07/11, Down 13.26%) Pretty recession proof business but operations are where this company got challenged here. 3% yield is safe and should have supported the stock better.