As the Q4 earnings season wraps, let’s dig into this quarter’s best and worst performers in the waste management industry, including Republic Services (NYSE: RSG) and its peers.

Waste management companies can possess licenses permitting them to handle hazardous materials. Furthermore, many services are performed through contracts and statutorily mandated, non-discretionary, or recurring, leading to more predictable revenue streams. However, regulation can be a headwind, rendering existing services obsolete or forcing companies to invest precious capital to comply with new, more environmentally-friendly rules. Lastly, waste management companies are at the whim of economic cycles. Interest rates, for example, can greatly impact industrial production or commercial projects that create waste and byproducts.

The 9 waste management stocks we track reported a slower Q4. As a group, revenues missed analysts’ consensus estimates by 1.2%.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 7.3% since the latest earnings results.

Republic Services (NYSE: RSG)

Processing several million tons of recyclables annually, Republic (NYSE: RSG) provides waste management services for residences, companies, and municipalities.

Republic Services reported revenues of $4.05 billion, up 5.6% year on year. This print fell short of analysts’ expectations by 0.7%, but it was still a satisfactory quarter for the company with a solid beat of analysts’ EPS estimates.

Interestingly, the stock is up 9.1% since reporting and currently trades at $245.01.

Is now the time to buy Republic Services? Access our full analysis of the earnings results here, it’s free.

Best Q4: Casella Waste Systems (NASDAQ: CWST)

Starting with the founder picking up garbage with a pickup truck he purchased using savings from high school, Casella (NASDAQ: CWST) offers waste management services for businesses, residents, and the government.

Casella Waste Systems reported revenues of $427.5 million, up 18.9% year on year, outperforming analysts’ expectations by 2.3%. The business had a satisfactory quarter with an impressive beat of analysts’ EPS estimates but a significant miss of analysts’ adjusted operating income estimates.

Casella Waste Systems achieved the biggest analyst estimates beat, fastest revenue growth, and highest full-year guidance raise among its peers. The market seems happy with the results as the stock is up 9.5% since reporting. It currently trades at $116.97.

Is now the time to buy Casella Waste Systems? Access our full analysis of the earnings results here, it’s free.

Weakest Q4: Quest Resource (NASDAQ: QRHC)

Recycling corporate waste to help companies be more sustainable, Quest Resource (NASDAQ: QRHC) is a provider of waste and recycling services.

Quest Resource reported revenues of $69.97 million, flat year on year, falling short of analysts’ expectations by 5%. It was a disappointing quarter as it posted a significant miss of analysts’ EBITDA and EPS estimates.

As expected, the stock is down 31.5% since the results and currently trades at $2.65.

Read our full analysis of Quest Resource’s results here.

Waste Management (NYSE: WM)

Headquartered in Houston, Waste Management (NYSE: WM) is a provider of comprehensive waste management services in North America.

Waste Management reported revenues of $5.89 billion, up 13% year on year. This number topped analysts’ expectations by 0.9%. Zooming out, it was a slower quarter as it produced a significant miss of analysts’ adjusted operating income and EPS estimates.

The stock is up 10.1% since reporting and currently trades at $230.89.

Read our full, actionable report on Waste Management here, it’s free.

Montrose (NYSE: MEG)

Founded to protect a tree-lined two-lane road, Montrose (NYSE: MEG) provides air quality monitoring, environmental laboratory testing, compliance, and environmental consulting services.

Montrose reported revenues of $189.1 million, up 14.1% year on year. This result beat analysts’ expectations by 0.6%. Aside from that, it was a mixed quarter as it also logged a solid beat of analysts’ EPS estimates but a significant miss of analysts’ organic revenue estimates.

Montrose had the weakest full-year guidance update among its peers. The stock is down 21.4% since reporting and currently trades at $13.70.

Read our full, actionable report on Montrose here, it’s free.

Market Update

In response to the Fed’s rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed’s 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.

Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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