WCN:NYSEWaste Connections, Inc. Analysis

Waste Connections posted a solid 6.4% year‑over‑year revenue increase to $9.6 bn and lifted non‑GAAP EPS to $4.09, beating consensus estimates. However, the stock trades at a trailing P/E of 36.9 versus an industry average of 30, and the DCF‑derived fair value sits near $35, suggesting the market is pricing in a significant premium. Technicals are bearish – the price sits below the 20‑, 50‑ and 200‑day SMAs, RSI is at 36, and MACD is in a bearish crossover, with support around $148.84 and resistance near $166.55. The dividend remains modest at 0.93% with a comfortable payout ratio of roughly 32%, and the company generates strong free cash flow and a healthy ROE of 13.1%.
Given the strong cash generation, dividend sustainability, and a consensus “strong buy” from 25 analysts, the fundamentals are attractive for medium‑ to long‑term investors. Yet the current overvaluation and bearish short‑term momentum advise caution until the price shows a clear reversal or consolidates above key moving averages.