Is WCN a good stock to buy? We came across a bullish thesis on Waste Connections, Inc. on Quality At A Fair Price’s Substack. In this article, we will summarize the bulls’ thesis on WCN. Waste Connections, Inc.’s share was trading at $153.71 as of June 8th. WCN’s trailing and forward P/E were 37.86 and 20.49 respectively according to Yahoo Finance.
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Waste Connections, Inc. (WCN) is one of the leading integrated waste management companies in North America, providing non-hazardous solid waste collection, transfer, disposal, and recycling services across residential, commercial, industrial, and municipal markets. The company has built a highly resilient and defensive business model supported by recurring revenue streams, strong pricing power, and essential service demand that remains durable across economic cycles.
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Waste Connections has consistently expanded through disciplined acquisitions, operational efficiency, and strategic market positioning in exclusive and secondary markets, allowing it to generate stable cash flows and industry-leading margins over time.
The stock currently appears attractively valued, trading at an estimated 13% discount to fair value based on Dividend Yield Theory analysis. Waste Connections’ forward dividend yield of 0.82% sits above its 5-year average yield of 0.72%, signaling a potentially favorable entry point for long-term investors. The company also has an exceptional dividend growth track record, consistently delivering annual dividend increases above 10%, including a recent 11.1% increase announced in October 2025. This sustained growth reflects management’s confidence in the company’s long-term cash flow generation and earnings visibility.
Looking ahead, Waste Connections offers a compelling total return profile with an estimated forward annual return approaching 13.6%. Much of this upside is expected to come from projected EPS growth of more than 10%, supported by pricing initiatives, acquisition synergies, and continued expansion in core markets. Combined with its defensive business model, strong execution, and shareholder-friendly capital allocation strategy, Waste Connections appears well-positioned to continue compounding value for investors over the long term.
Previously, we covered a bullish thesis on Waste Management, Inc. by Francesco Ferrari in April 2025, which highlighted the company’s low-volatility outperformance, resilient business model, and strong profitability metrics. WM’s stock price has depreciated by approximately 6.39% since our coverage. Quality At A Fair Price shares a similar view but emphasizes on Waste Connections, Inc.’s discounted valuation, dividend growth, and acquisition-driven compounding potential.
Waste Connections, Inc. is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 61 hedge fund portfolios held WCN at the end of the first quarter which was 65 in the previous quarter. While we acknowledge the risk and potential of WCN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than WCN and that has 10,000% upside potential, check out our report about this cheapest AI stock.
Disclosure: None.
