In this article, we will be looking at the 5 best recycling stocks to invest in. If you want to read our detailed analysis of these companies, go directly to the 10 Best Recycling Stocks to Invest In.
5. Clean Harbors, Inc. (NYSE: CLH)
Number of Hedge Fund Holders: 27
Clean Harbors, Inc. (NYSE: CLH) is a provider of environmental and industrial services in North America. The company has two segments: Environmental Services and Safety-Kleen. It ranks 5th on our list of the best recycling stocks to invest in.
On June 19th, Clean Harbors, Inc. (NYSE: CLH) acquired about $140 million’s worth of assets from Vertex Energy related to used motor oil collection and re-refinery. This May, Baird also mentioned Clean Harbors, Inc. (NYSE: CLH) among the stocks that outperformed rivals in the waste management sector, and about this stock, in particular, the firm commented that the company is expected to see robust profitability in light of recent base oil pricing. The firm mentioned that the valuation of Clean Harbors, Inc. (NYSE: CLH) was also attractive and had potential beat-and-raises. In the first quarter of 2021, Clean Harbors, Inc. (NYSE: CLH) had an EPS of $0.42, beating estimates by $0.17. The company’s revenue was $808.15 million, beating estimates by $21.64 million, and it has a gross profit margin of 31.31%. The stock has gained 13.2% in the past 6 months and 24.09% year to date.
As of the end of the first quarter of 2021, 27 hedge fund holders out of the 866 tracked by Insider Monkey held stakes in Clean Harbors, Inc. (NYSE: CLH) worth roughly $383 million. This is compared to 22 hedge funds in the previous quarter, with a total stake value of $308 million.
4. Waste Connections, Inc. (NYSE: WCN)
Number of Hedge Fund Holders: 31
Waste Connections, Inc. (NYSE: WCN) is a company providing waste collection, transfer, disposal, and recycling services in the US and Canada. Its segments are Southern, Western, Eastern, Canada, Central, and Corporate. The company ranks 4th on our list of the best recycling stocks to invest in.
This April, Waste Connections, Inc. (NYSE: WCN) was one of the stocks initiated with a Buy rating at Goldman Sachs in light of the firm considering the waste management sector one of the beneficiaries of environmental policy changes. Analyst Jerry Revich commented that Waste Connections, Inc. (NYSE: WCN) had a reasonable valuation. In the first quarter of 2021, Waste Connections, Inc. (NYSE: WCN) had an EPS of $0.70, beating estimates by $0.03. The company’s revenue was $1.4 billion, up 3.22% year over year and beating estimates by $17.20 million, and it has a gross profit margin of 40.12%. The stock has gained 15.61% in the past 6 months and 17.87% year to date.
As of the end of the first quarter of 2021, 31 hedge fund holders out of the 866 tracked by Insider Monkey held stakes in Waste Connections, Inc. (NYSE: WCN) worth roughly $822 million. This is compared to 35 hedge funds in the previous quarter, with a total stake value of $626 million.
3. Waste Management, Inc. (NYSE: WM)
Number of Hedge Fund Holders: 32
Waste Management, Inc. (NYSE: WM) is a provider of waste management environmental services to residential, commercial, industrial, and municipal customers in North America. The company ranks 3rd on our list of the best recycling stocks to invest in.
This May, Waste Management, Inc. (NYSE: WM) was among the waste management stocks noted by Goldman Sachs as being reasonably valued and initiated at a Buy rating in light of the sector’s growth potential. The stock also rallied in light of its positive Q1 results. In the first quarter of 2021, Waste Management, Inc. (NYSE: WM) had an EPS of $1.06, beating estimates by $0.05. The company’s revenue was $4.11 billion, up 10.27% year over year, also beating estimates by $76.54 million, and it has a gross profit margin of 38.94%. The stock has also gained 21.23% in the past 6 months and 24.31% year to date.
As of the end of the first quarter of 2021, 32 hedge fund holders out of the 866 tracked by Insider Monkey held stakes in Waste Management, Inc. (NYSE: WM) worth roughly $3.29 billion. This is compared to 37 hedge funds in the previous quarter, with a total stake value of $2.93 billion.
2. Republic Services, Inc. (NYSE: RSG)
Number of Hedge Fund Holders: 36
Republic Services, Inc. (NYSE: RSG) is a provider of non-hazardous solid waste collection, transfer, disposal, recycling, and environmental services in the US. The company ranks 2nd on our list of the best recycling stocks to invest in.
Baird commented on Republic Services, Inc. (NYSE: RSG), stating that the stock’s volume is expected to improve and the company should be able to bring in higher profitability. Goldman Sachs also initiated coverage of Republic Services, Inc. (NYSE: RSG) with a Buy rating this May. In the first quarter of 2021, Republic Services, Inc. (NYSE: RSG) had an EPS of $0.93, beating estimates by $0.07. The company’s revenue was $2.60 billion, missing estimates by -$20.35 million but greater than the previous quarter’s $2.57 billion revenue and up 1.66% year over year. The company has a gross profit margin of 41.17% and the stock has gained 16.52% in the past 6 months and 19.44% year to date.
As of the end of the first quarter of 2021, 36 hedge fund holders out of the 866 tracked by Insider Monkey held stakes in Republic Services, Inc. (NYSE: RSG) worth roughly $1.07 billion. This is compared to 36 hedge funds in the previous quarter, with a total stake value of $1.09 billion.
1. LKQ Corporation (NASDAQ: LKQ)
Number of Hedge Fund Holders: 36
LKQ Corporation (NASDAQ: LKQ) is a distributor of replacement parts, components, and systems for the repair and maintenance of vehicles. The stock, despite not being a traditional recycling stock, ranks 1st on our list of the best recycling stocks to invest in because LKQ Corporation (NASDAQ: LKQ) recycles used autos to reduce landfill waste and provides cheaper alternatives to new car parts by promoting the reuse and recycling of older car parts.
This May, LKQ Corporation (NASDAQ: LKQ) acquired Green Bean Battery and its assets, aiding the company in its mission to be the leading provider of alternative parts for vehicle repair. In the first quarter of 2021, LKQ Corporation (NASDAQ: LKQ) had an EPS of $0.94, beating estimates by $0.31. The company’s revenue was $3.17 billion, beating estimates by $208.21 million and up 5.66% year over year, and it has a gross profit margin of 39.67%. The stock has gained 32.75% in the past 6 months and 41.85% year to date.
As of the end of the first quarter of 2021, 36 hedge fund holders out of the 866 tracked by Insider Monkey held stakes in LKQ Corporation (NASDAQ: LKQ) worth roughly $1.54 billion. This is compared to 50 hedge funds in the previous quarter, with a total stake value of $1.61 billion.
Bonsai Partners mentioned LKQ Corporation (NASDAQ: LKQ) in its first-quarter 2021 investor letter. Here’s what they said:
“LKQ is the largest provider of alternative collision and mechanical automotive parts in the United States. In Europe, they are the leading distributor of general automotive maintenance parts and supplies. Its shares appreciated 20.1% during the quarter.
During the quarter, LKQ shared its fourth-quarter results: showing a slight revenue decline and a nearly 30% increase in quarterly profit Vs. the same period last year. COVID has proved a surprising catalyst for my investment thesis which revolves around optimizing their recent large acquisitions that were never efficiently integrated.
Admittedly, in addition to LKQ’s quarterly performance, thematically, there has been broad enthusiasm for “re-opening” trades, of which, LKQ has been a beneficiary. Most importantly, the prior overhang related to LKQ’s debt burden is now all but behind us. Their net debt to EBITDA ratio now sits below 2x, a stark change from the near 3x leverage ratio before the pandemic. At that time, LKQ’s leverage had the potential to spiral upward to nearly 4-5x if the business experienced a prolonged shutdown. It’s good to be past this issue.”
You can also take a look at 10 Best Climate Change Stocks to Buy Now and 20 Best Countries To Live Considering Climate Change.
