5 Best Waste Management Stocks to Buy Now

In this article, we discuss 5 best waste management stocks to buy now. If you want to see more stocks in this selection, check out 11 Best Waste Management Stocks to Buy Now. 

5. Stericycle, Inc. (NASDAQ:SRCL)

Number of Hedge Fund Holders: 21

Stericycle, Inc. (NASDAQ:SRCL) its subsidiaries provide regulated and compliance solutions globally, particularly in the United States and Europe. The company offers regulated waste and compliance services, which include regulated medical waste, sharps waste management and disposal, pharmaceutical waste management and disposal, controlled substance waste disposal, healthcare hazardous waste, and COVID-19 waste disposal. 

On February 24, Baird downgraded Stericycle, Inc. (NASDAQ:SRCL) to Neutral from Outperform with a price target of $53, down from $65 due to the company’s disappointing Q4 results, 2023 guidance being below expectations, and significant lowering of long-term free cash flow views. Baird believes that while there is still potential for significant improvement in Stericycle, Inc. (NASDAQ:SRCL)’s fundamentals, the removal of expected margin and free cash flow expansion has reduced the near-term upside, making the stock’s risk/reward less favorable. They also mentioned that the firm pushed out their free cash flow targets by two years.

According to Insider Monkey’s fourth quarter database, 21 hedge funds were bullish on Stericycle, Inc. (NASDAQ:SRCL), compared to 20 funds in the prior quarter. John W. Rogers’ Ariel Investments is the largest stakeholder of the company, with 4.2 million shares worth $210.7 million.  

Here is what Diamond Hill Small Cap Fund has to say about Stericycle, Inc. (NASDAQ:SRCL) in its Q4 2021 investor letter:

“Bottom contributors in Q4 included Stericycle. Stericycle is the largest provider of regulated medical waste management in the U.S. Implementation of a new enterprise resource planning (ERP) system has caused productivity declines in the near term. Longer term, we believe the ERP investment will greatly increase productivity and reduce costs. We anticipate the business will continue to improve with ongoing revenue growth, as cost savings drive margin expansion amid debt paydown.”