For immediate release
Chicago, IL – December 6, 2021 – Today, Zacks Investment Ideas highlights the following features: VanEck Environmental Services ETF EVX, Republic Services, Inc. RSG, Waste Management, Inc. WM and Waste Connections, Inc. WCN.
Don’t “waste” this opportunity to buy these 3 top performers
Here’s an unpopular investment truth: Sometimes a good investment can be boring. While it can be exhilarating trying to jump into the next big growth story early, allowing strong companies to drive your portfolio growth over time will most often pay big dividends in the future.
Waste disposal is not all that glamorous industry. Yet when some of the world’s largest financial institutions are the biggest holders of these stocks, there’s a good reason for it and you’d better be careful.
The ETF VanEck Environmental Services tracks the performance of companies involved in waste collection, transfer and disposal services, recycling, soil remediation, wastewater management and environmental consulting services. EVX has outperformed the major indices this year with a return of almost 27%.
The three waste disposal companies which we will discuss below are the three main components of EVX, collecting almost 30% of the ETF’s total holdings. Volatility has been the name of the game over the past few weeks for the market in general, but these three companies are still trading just a few percent of their respective 52-week highs.
Stocks that resist market corrections well tend to lead when indices resume their uptrend. Let’s take a closer look at these three garbage collection companies that are showing strength this year.
Republic Services provides waste collection, recycling, disposal and energy services for commercial, industrial, municipal and residential customers in the United States and Puerto Rico. Based in Phoenix, AZ, RSG operates more than 300 collection facilities in 39 different states.
At Zacks # 2 Buy Stock, RSG has racked up a remarkable track record of earnings surprises, beating estimates in each of the past 20 quarters. The company recently reported EPS of $ 0.08 for the quarter ending September, a 7.8% surprise from estimates. RSG had a surprise four-quarter average earnings of 14.2%, which supported the stock’s 42% return for the year.
RSG management continues to improve its forecasting and its consistency with dividend payments and share buybacks will ensure investor confidence remains strong. Analysts covering the company have revised their annual profit estimates upward by nearly 2% in the past 60 days to $ 4.14, a growth rate of 16.3% from 2020. The next report on RSG’s earnings are expected on February 28.e, 2022.
Waste Management is a leading provider of integrated environmental solutions in North America, serving municipal, commercial and industrial customers. Headquartered in Houston, Texas, WM has the largest network of recycling and landfill facilities in the industry, and its fleet of natural gas trucks is the largest heavy-duty truck fleet in North America.
WM, currently a Zacks # 3 Hold’em, has built a solid track record of earnings surprises, beating consensus estimates in 16 of its last 17 quarters. WM stock has risen more than 40% this year on the heels of an average earnings surprise of 3.5% over the past four quarters.
Dividend payments and share buybacks continued to support the stock. Zacks’ consensus estimate for revenue and EPS for the current year is $ 17.81 billion (17.1% growth) and $ 4.84 (growth of 20.1%). %), respectively. WM Expected to Release Quarterly Results on February 17e, 2022.
Waste Connections is an integrated solid waste management services company, providing collection, transfer and disposal services in proprietary and secondary markets. The company also provides intermodal services for the movement of freight and solid waste containers. WCN operates primarily in the United States and is headquartered in The Woodlands, TX.
WCN ranks Zacks # 3 Holds and has had a remarkable history of profit surprises, beating estimates in each of the last twenty quarters. The company recently reported end-October profit of $ 0.89, a 4.7% surprise from consensus. WCN has produced an average surprise profit of 6% over the past four quarters, increasing the stock’s return by 32% since the start of the year.
Analysts have revised annual profit estimates up by 2.2% over the past 60 days, anticipating EPS of $ 3.22. This translates into a respectable growth rate of 22% over 2020 EPS of $ 2.64. WCN’s next earnings report due on February 16e, 2022.
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Past performance is no guarantee of future results. The potential for loss is inherent in any investment. This material is provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold any security. No recommendation or advice is given as to whether an investment is suitable for a particular investor. It should not be assumed that any investment in any identified and described securities, companies, sectors or markets was or will be profitable. All information is current as of the date hereof and is subject to change without notice. The views or opinions expressed may not reflect those of the company as a whole. Zacks Investment Research does not engage in investment banking, market making or securities asset management activities. These returns come from hypothetical portfolios composed of stocks with a Zacks rank = 1 that have been rebalanced monthly without any transaction costs. These are not the returns of actual equity portfolios. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for more information on the performance figures displayed in this press release.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.