Stock review request WCN

Chad Holland
Jul 21, 2023 09:23 AM 0 Answers
Member Since Jun 2023
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Hi Marty,

Can you do a review of WCN please?

Thanks for all you do.




Thank you for your question!

Waste Connection is a different type of stock as it is more defensive than growth. But, they're in a really steady business, and pays a small dividend.  The fundamentals for this stock/company are solid. Although, it has a little more debt than I would like especially in a rising interest rate environment. This stock is trading at roughly five times sales with a multiple of 37. They will earn nearly $5 next year, and at this point I would say it is fairly y valued and maybe expensive for a value stock.

Technically, The stock has been trading sideways for 18 months. If you held through all that then there may be a light at the end of the tunnel. The stock has formed a base on base pattern with the last base being 32 weeks.  It showed signs of like this past week on the daily chart as it bounced off its 50sma. I would think that it will not trade sideways forever, and its peers RSG and WM have shown strength recently. This stock is trading at its standard  buy point of $145.49 and if you are going to take a swing at this stock then now is the time.

The weekly chart shows the 18 months of consolidation as it consistently forms a base after base pattern.

RSG This is a company in its peer group and it has been performing well. It broke out of a base just last week ,after a long period of consolidation, as money flowed to more defensive stocks. This stock is not quite as expensive as WCN.

I am not sure if you want to buy WCN for a long term hold or if you just want to trade it as the money is flowing toward defensive and value stocks in the short term rotation game.

I hope this answers your question!






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