And the nonhazardous waste management company could rise more due to strong financial performance and future guidance. But another likely reason is Big Money lifting the stock.
Big Money Attracted to Waste Connections
So, what’s Big Money? Said simply, that’s when a stock goes up in price alongside chunky volumes. It’s indicative of institutions betting on the shares.
Smart money managers are always looking for the next hot stock. And Waste Connections has many fundamental qualities that are attractive.
This sets up well for the stock going forward. But how the shares have been trading points to more upside. As I’ll show you, the Big Money has been consistent in the shares.
You see, fund managers are always looking to bet on the next outlier stocks…the best in class. They spend countless hours sizing up companies, reading reports, speaking to analysts…you name it. When they find a company firing on all cylinders, they pounce in a big way.
That’s why I’ve learned how critical it is to gauge Big Money demand for shares. To show you what I mean, have a look at the Big Money buy (green) and sell (red) signals WCN has made over the last year.
The last few weeks have seen Big Money activity too. Each green bar signals big trading volumes as the stock ramped in price:
In the last year, the stock attracted 15 Big Money buy signals and 11 Big Money sell signals. Generally speaking, recent green bars could mean more upside is ahead.
Now, let’s check out the technical action grabbing my attention:
- 1-month outperformance vs. Industrials Select Sector SPDR ETF (+10.4% vs. XLI)
Outperformance is important for leading stocks.
Waste Connections Fundamental Analysis
Next, it’s a good idea to check under the hood. Meaning, I want to make sure the fundamental story is strong too. As you can see, Waste Connections has had double-digit sales and earnings growth as well as healthy profits. Take a look:
- 1-year sales growth rate (+13.0%)
- 3-year EPS growth rate (+48.0%)
- Profit margin (+10.0%)
Marrying great fundamentals with technically superior stocks is a winning recipe over the long-term.
In fact, WCN has been a top-rated stock at my research firm, MAPsignals, for years. That means the stock has had buy pressure, strong technicals, and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.
WCN has a lot of qualities that are attracting Big Money. It’s made the Top 20 report 11 times since 2014, with its first appearance on 06/01/2014…and gaining 368.5% since. The blue bars below show when Waste Connections was a top pick:
It’s been a top stock in the industrials sector according to the MAPsignals process. I wouldn’t be surprised if WCN makes additional appearances in the years to come. Let’s tie this all together.
Waste Connections Price Prediction
The Waste Connections rally could have further to go. Big Money buying in the shares is signaling to take notice. Shares could be positioned for further upside, plus it pays a current dividend yield of more than 0.6%. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.
Disclosure: the author holds no positions in WCN at the time of publication.
Learn more about the MAPsignals process here.