WCN Should I Buy
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Waste Connections Inc (WCN) is not a strong buy at the moment for a beginner investor with a long-term strategy. While the company has a stable business model, recent financial performance, analyst sentiment, and technical indicators suggest a cautious approach. The lack of strong positive catalysts and the absence of Intellectia Proprietary Trading Signals further support a hold recommendation.
The MACD is positive but contracting, indicating weakening momentum. RSI is neutral at 54.859, and moving averages are converging, showing no clear trend. The price is trading near the pivot level of 168.44, with resistance at 172.97 and support at 163.909. Overall, the technical indicators suggest a neutral trend.
The company has priced a $600 million senior notes offering at 4.800% to optimize its capital structure and improve liquidity. Revenue increased by 5.00% YoY in Q4 2025, and gross margin improved by 7.07% YoY.
Analysts have consistently lowered price targets, citing weaker-than-expected free cash flow guidance and higher capex. Hedge funds are selling heavily, with a 702.62% increase in selling activity over the last quarter.
In Q4 2025, revenue increased by 5.00% YoY to $2.37 billion, but net income dropped significantly by -231.88% YoY to $258.5 million. EPS also fell by -232.89% YoY to 1.01. However, gross margin improved by 7.07% YoY to 29.07%.
Analysts have lowered price targets across the board, with the most recent target from UBS at $185 (down from $195) and RBC Capital at $210 (down from $219). While some analysts maintain Buy or Outperform ratings, the consensus reflects caution due to weaker guidance and higher capex.
