Waste Connections, Inc. WCN stock has gained 8.6% over the past three months, outperforming the industry's 3.6% growth and the Zacks S&P 500 Composite's 1.1% return.

3-Month Share Price Performance

                                                                    Image Source: Zacks Investment Research

Let us delve deeper into the factors that have contributed to the company's outperformance.

Thriving Market Acts Like a Tailwind

Waste Connections is benefiting from an expanding global waste-management market, driven by rising waste generation, urbanization, stricter environmental regulations and increased adoption of recycling and waste-to-energy technologies. This tailwind has helped the company generate impressive second-quarter 2026 results. WCN's Solid Waste Collection revenues increased 5.8% year over year to $1.78 billion. Solid Waste Disposal and Transfer revenues advanced 5.1% to $464.3 million. Its Exploration and Production (E&P) Waste Treatment, Recovery and Disposal revenues increased 18.3% to $201 million, while Intermodal and Other revenues rose 18.3% to $51.3 million during the same period. These results demonstrate the company's potential to drive growth within the expanding market.

Acquisitions Remain Key Growth Catalyst for WCN

Acquisitions have been acting as a key growth driver for Waste Connections, providing platforms for service expansion and tuck-in deals. The company completed 13, 24 and 19 acquisitions in 2023, 2024 and 2025, contributing $410.9 million, $529 million and $377 million in revenues, respectively. First-half 2026 acquisitions added about $100 million in annualized revenues. Management expects an above-average acquisition year, while the 2026 guidance excludes future deals, providing potential upside.

Strong Cash Generation & Dividend Payments

WCN's net cash provided by operating activities totaled $733.3 million in the second quarter, rising 14.9% year over year. The adjusted free cash flow increased 24.7% year over year to $457.5 million, representing 17.9% of revenues. The company paid out $177.1 million in dividends during the first half of 2026, with a quarterly dividend of 35 cents per share during the second quarter. This solid cash position and dividend payout indicate financial flexibility and the company's shareholder-friendly policies. 

WCN's Zacks Rank & Stocks to Consider

Waste Connections currently carries a Zacks Rank #3 (Hold).

A couple of better-ranked stocks in the broader Business Services sector are Bright Horizons Family Solutions Inc. BFAM and CBIZ, Inc.CBZ.