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.

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 as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term 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.