WCN Should I Buy
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Waste Connections Inc (WCN) is not a strong buy for a beginner, long-term investor with $50,000-$100,000 to invest. The technical indicators show a bearish trend, options data suggests bearish sentiment, and recent financial performance is weak with significant declines in net income and EPS. While analysts maintain positive ratings, price targets have been lowered, and hedge funds are selling. Given these factors, it is best to hold off on buying this stock at the moment.
The MACD is positive and expanding, indicating some upward momentum, but the RSI is neutral at 65.484. Moving averages are bearish (SMA_200 > SMA_20 > SMA_5), and the stock is currently trading near resistance levels (R1: 170.911). Key support is at 164.176. Overall, the technical trend is bearish.
Analysts maintain Buy and Outperform ratings on the stock despite lowering price targets. The company's gross margin increased by 7.07% YoY in Q4 2025, showing operational efficiency.
Hedge funds are selling heavily, with a 702.62% increase in selling activity last quarter. Financial performance in Q4 2025 showed a significant decline in net income (-231.88% YoY) and EPS (-232.89% YoY). Analysts have lowered price targets across the board, citing weaker-than-expected FY26 guidance. No recent news or congress trading activity provides additional support.
In Q4 2025, revenue increased by 5.00% YoY to $2.37 billion, but net income dropped drastically by -231.88% YoY to $258.5 million. EPS also declined by -232.89% YoY to 1.01. Gross margin improved to 29.07, up 7.07% YoY, but the overall financial performance is weak due to significant profitability declines.
Analysts maintain positive ratings (Buy or Outperform) but have lowered price targets due to weaker FY26 guidance. The average price target is now in the $200-$210 range, down from previous levels. Some analysts see the recent selloff as excessive, but others highlight concerns about free cash flow and higher capex.
