3 Waste Removal Firms Poised to Beat Estimates This Earnings Season

Reflecting on the first quarter of 2025, the U.S. service sector maintained strong momentum, benefiting from economic stability and continued expansion in non-manufacturing activities. Key growth drivers included the accelerating AI revolution, rising demand for cost efficiency, and an increased emphasis on regulatory compliance. Digital transformation remained pivotal, reshaping business operations and enhancing service delivery.

Multiple service industries, including transportation and warehousing, retail and wholesale trade, accommodation and food services, utilities, finance, insurance and construction, demonstrated resilience and healthy activity throughout the quarter. Their sustained strength underscores the sector’s crucial role in supporting broader economic stability and growth.

Some waste management service providers are set to report their earnings results over the next few weeks. We have picked three technology stocks — Casella Waste Systems CWST, Waste Connections WCN, WM WM — which are well-positioned to beat earnings estimates this season.

Resilient Growth and Strong Service Demand

The economy remained resilient, with GDP growing 2.8% in 2024, slightly below the 2.9% growth recorded in 2023, according to the Bureau of Economic Analysis. Non-manufacturing activities remained robust, as evidenced by the Services PMI, which stayed above the 50% threshold for the 55th time in 58 months, indicating sustained expansion since the post-pandemic recovery.

Several industry-specific factors fueled growth in the quarter. Essential services, such as waste management, experienced steady demand, while risk mitigation and consulting services saw increased relevance amid evolving regulations. Additionally, companies sought expertise in operational efficiency and cost reduction, reinforcing the demand for specialized service providers.

Waste Removal Stocks Poised to Beat This Season

With the existence of a number of players in the sector, finding the right business services stocks that have the potential to beat on earnings can be daunting. Our proprietary methodology, however, makes it fairly simple.

You could narrow down the list of choices by looking at stocks that have the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Earnings ESP is our proprietary methodology for determining stocks that have the best chances to surprise with their next earnings announcement. It is the percentage difference between the Most Accurate Estimate and the Zacks Consensus Estimate.

Our research shows that for stocks with this combination, the chance of an earnings surprise is as high as 70%.

Here are our picks.

Casella Waste Systems: The Zacks Consensus Estimate for the company’s first-quarter 2025 revenues is pegged at 412.4 million, indicating year-over-year growth of 20.9%. The consensus estimate for earnings is pegged at 11 cents per share, implying more than 100% year-over-year growth. The company beat the consensus estimate in two of the past four quarters, and missed twice, with an average surprise of 49.5%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

CWST has an Earnings ESP of +38.44% and a Zacks Rank of 1. The company is scheduled to declare its first-quarter 2025 results on May 1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Casella Waste Systems, Inc. Price and EPS Surprise

Casella Waste Systems, Inc. price-eps-surprise | Casella Waste Systems, Inc. Quote

Waste Connections: The Zacks Consensus Estimate for the company’s first-quarter 2025 revenues is pegged at 2.2 billion, indicating year-over-year growth of 7.1%. The consensus estimate for earnings is pegged at $1.07 per share, implying a year-over-year decline of 2.9%. The company beat the consensus estimate in three of the past four quarters, and missed once, with an average surprise of 1.9%.

WCN has an Earnings ESP of +2.00% and a Zacks Rank of 3. The company is scheduled to declare its first-quarter 2025 results on April 23.

Waste Connections, Inc. Price and EPS Surprise

Waste Connections, Inc. price-eps-surprise | Waste Connections, Inc. Quote

WM: The Zacks Consensus Estimate for the company’s first-quarter 2025 revenues is pegged at 6.1 billion, indicating year-over-year growth of 18.2%. The consensus estimate for earnings is pegged at $1.66 per share, implying a year-over-year decline of 5.1%. The company beat the consensus estimate in two of the past four quarters, missed once, and met once, with an average surprise of 3.9%.

Waste Management, Inc. Price and EPS Surprise

Waste Management, Inc. price-eps-surprise | Waste Management, Inc. Quote

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This article originally published on Zacks Investment Research (zacks.com).

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