Waste management might not seem as interesting to invest in as hot industries like AI, but it’s a growing industry that might be worth a look for investors.
First, waste management is often a steady business. People and companies always need trash removed, which tends to lead to long-term contracts.
Second, waste management companies tend to consolidate so they have economies of scale, which leads to big waste management companies having real competitive advantages.
Why Waste Management Is a Real Trend:
- The world is producing more trash every year with global waste expected to rise 70% by 2050.
- Governments are enforcing stricter rules on recycling, plastic use, and landfill waste.
- New technologies like EVs and batteries are creating new types of waste that need special disposal.
Here are 10 waste management stocks that are poised to benefit from the growing trash problem:
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Here are a few of our favorite stocks from this list.
Clean Harbors (CLH)
- Market Cap: $11 billion
- Industry: Commercial Services & Supplies
- Analyst Upside: 26%
- P/E Ratio: 27x
Company Overview: Clean Harbors is a leading provider of environmental, energy, and industrial services, including hazardous waste management, emergency spill response, and industrial cleaning.
Business Strategy: The company focuses on expanding its service capabilities through strategic acquisitions and enhancing operational efficiency to drive growth and profitability.
Recent Developments:
- Earnings & Profitability: Clean Harbors has good profitability from strong demand for its waste management and industrial cleaning services. Also, the business has seen consistent improvements in operational efficiency.
- Business Growth Trends: The acquisition of HEPACO has helped strengthen its position in the field services sector, contributing to broader business growth.
- Shareholder Returns: Clean Harbors continues to demonstrate financial strength, with a focus on generating strong free cash flow to support shareholder returns through dividends and buybacks.
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Waste Management (WM)
- Market Cap: $93 billion
- Industry: Environmental & Facilities Services
- Analyst Upside: 4%
- P/E Ratio: 30
Company Overview: Waste Management, rebranded as WM, is a leading provider of waste and environmental services in North America. The company offers collection, transfer, disposal, and recycling services.
Business Strategy: WM focuses on leveraging technology and automation to improve operational efficiency and reduce reliance on physical labor. This is helping to solve workforce challenges and improve service delivery.
Recent Developments:
- Earnings & Profitability: WM has continued to perform well, supported by strong demand for its waste collection and recycling services, contributing to its overall profitability.
- Business Growth Trends: The company is considering the sale of its renewable natural gas unit, indicating a potential strategic shift to refocus on its core waste management operations.
- Shareholder Returns: WM remains committed to delivering shareholder value through ongoing dividends and share repurchase programs.
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Republic Services (RSG)
- Market Cap: $76 billion
- Industry: Commercial Services & Supplies
- Analyst Upside: 0%
- P/E Ratio: 36
Company Overview: Republic Services is the second-largest provider of non-hazardous solid waste collection, transfer, disposal, and recycling services in the United States.
Business Strategy: The company emphasizes strategic acquisitions and sustainability initiatives to expand its service offerings and geographic footprint, aiming for long-term growth and environmental responsibility.
Recent Developments:
- Earnings & Profitability: Republic Services continues to report strong financial results, driven by solid demand for its waste management services and effective operational efficiency.
- Business Growth Trends: Acquiring other waste management companies, like Shamrock Environmental, is helping the company increase its economies of scale and boost returns.
- Shareholder Returns: Republic Services has demonstrated a strong commitment to rewarding shareholders with consistent dividends and share buybacks.
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TIKR Takeaway
Waste Management, Inc., Republic Services, Inc., and Clean Harbors, Inc. are some businesses that are expected to benefit over the next decade in the waste management sector.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
