Waste Connections (WCN) Holds Buy Rating Despite Mixed Q3 Earnings Results

Waste Connections Inc. (NYSE:WCN) ranks among the stocks in Bill Gates’ portfolio that analysts are watching. On October 21, Waste Connections Inc. (NYSE:WCN) released its third quarter financial results, with revenue somewhat higher than what analysts had expected, while adjusted earnings fell short of projections.

Pixabay/Public Domain

The company reported revenue of $2.46 billion in the third quarter, slightly higher than the consensus expectation of $2.45 billion and a 5.1% rise over the same quarter a year earlier. However, adjusted EPS came in at $1.35, missing analyst forecasts of $1.38.

Waste Connections Inc. (NYSE:WCN) also reported an 11.1% increase in its regular quarterly dividend and completed share buybacks totaling roughly 1% of outstanding shares. Year-to-date, the company has completed or secured formal agreements on acquisitions totaling around $300 million in annual revenue.

Following the results, Stifel maintained a Buy rating but lowered its price target for Waste Connections Inc. (NYSE:WCN) to $218 from $221 on October 23, noting that the company’s core business exceeded expectations.

Waste Connections Inc. (NYSE:WCN) is a solid waste management company providing integrated services including non-hazardous waste collection, transfer, disposal, and resource recovery (recycling and renewable fuels).

While we acknowledge the potential of WCN to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than WCN  and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 10 Best Magic Formula Stocks for 2025 and 10 Best Retirement Stocks to Buy According to Hedge Funds.

Disclosure: None. This article is originally published at Insider Monkey.