Waste Connections Stock Could Struggle to Move Higher

Analyzing post-earnings opportunities for Waste Connections stock

facebook X logo linkedin

Waste Connections, Inc. (NYSE:WCN) is down 2.4% to trade at $123.76 at last check. While some broader market headwinds may be to blame for this negative price action, the equity has been moving lower on the charts since April, after the $142 level capped several rallies. The security is today pacing for its seventh-straight daily drop, following last week's first-quarter earnings miss, to trade at its lowest level since early March. 

WCN Intraday

Analysts remain firmly optimistic towards Waste Connections stock. In fact, 11 of the 12 in question call the equity a "buy" or better, while the 12-month consensus target price of $149.74 is a 20.5% premium to current levels. An unwinding of this optimism could push shares lower still. 

The options pits are bearish, however. This is per the stock's Schaeffer's put/call open interest ratio (SOIR) of 1.04, which stands higher than 99% of readings from the past year. In other words, short-term traders have rarely been more put-biased towards WCN.

Nonetheless, Waste Connections has generated consistent top- and bottom-line growth in recent years, with the exception of a 64% decrease in net income for 2020. For 2021, WCN reported 13% revenue growth, and 202% net income growth. Waste Connection’s trailing 12-month revenues and net income are also up 30% and 17%, respectively, since 2018.

WCN is estimated to end fiscal 2022 with 14.8% revenue growth, and 17.9% earnings growth. What's more, Wall Street sees revenues rising 8.1%, and earnings 15% in 2023. The company offers a dividend yield of 0.73%, with a forward dividend of $0.92, making it am option for long-term investors, too. However, at its forward price-earnings ratio of 26.04 and a price-sales ratio of 5.16, WCN remains overvalued, despite its relatively high growth expectations.


Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI