Waste generation has surged to unprecedented levels, with urban areas producing billions of tons of waste every year. With global waste production projected to increase by 70% by 2050, according to the World Bank, the importance of sustainable waste management cannot be overstated.
As we quest for smarter, greener disposal solutions to combat these issues, fundamentally strong waste management companies like Ecolab Inc. , Republic Services, Inc. (RSG), and Clean Harbors, Inc. are poised to benefit. These companies are not just hauling trash but innovating solutions that help reduce environmental impact, cut emissions, and even generate clean energy. With only 32% of global waste being recycled and at least 33% not managed safely, these firms are leveraging technology and sustainable practices to close the gap.
AI-powered sorting systems now help keep recyclables out of landfills, while smart monitoring tools allow companies to track waste, water usage, and pollution levels in real-time. Ecolab, for instance, uses ECOLAB3D™, an advanced analytics platform, to optimize sustainability efforts across industries.
Moreover, instead of letting waste decompose in landfills and releasing harmful methane gas, waste-to-energy (WTE) technology converts trash into energy through incineration, gasification, and anaerobic digestion. This approach reduces landfill waste and generates electricity and fuel from materials that would otherwise be discarded. The global WTE market is projected to reach $73.83 billion by 2031, growing at 7.5% annually, thanks to increasing demand for alternative energy sources.
Given the industry’s encouraging prospects, let’s look at the fundamentals of the best three Waste Disposal stocks, beginning with the third choice.
Stock #3: Clean Harbors, Inc. (CLH)
CLH provides environmental and industrial services in the United States and internationally. The company operates through two segments: Environmental Services and Safety-Kleen Sustainability Solutions.
On November 11, 2024, CLH announced that its Safety-Kleen subsidiary would increase pricing for used oil collection services in response to rising operational costs and softening crude oil prices. The rate changes, impacting U.S. and Canadian customers, are designed to help maintain profitability for the Safety-Kleen Sustainability Solutions segment, which serves over 100,000 customers annually. The move aims to offset transportation and labor costs inflation and ensure continued financial performance.
For the third quarter (ended December 31, 2024), CLH’s revenue increased 6.9% year-over-year to $1.43 billion, while income from operations amounted to $136.97 million. Its adjusted EBITDA grew marginally from the year-ago value to $257.21 million with a margin of 18%. Meanwhile, the company’s net income and EPS for the quarter stood at $83.97 million and $1.55, respectively. Also, its adjusted free cash flow increased 43.1% year-over-year to $247.52 million.
Analysts expect CLH’s revenue for the first quarter (ending March 2025) to increase 4.6% year-over-year to $1.44 billion. However, its EPS for the same period is expected to decline by 18.5% year-over-year, settling at $1.05. Nonetheless, the company has surpassed the revenue and EPS estimates in three of the four trailing quarters, which is promising.
Over the past year, the stock has gained 16.2%, closing the last trading session at $214.22.
CLH’s stance is reflected in its POWR Ratings. It has a B grade for Quality. The POWR Ratings are calculated by considering 118 different factors, each weighted to an optimal degree.
Among 13 stocks in the Waste Disposal industry, it is ranked #4. Click here to see the other CLH ratings for Growth, Value, Momentum, Stability, and Sentiment.
Stock #2: Ecolab Inc. (ECL)
ECL offers water, hygiene, and infection prevention solutions and services internationally. The company operates through Global Industrial; Global Institutional & Specialty; and Global Healthcare & Life Sciences segments.
On February 20, 2025, buoyed by its strong financial performance, the company’s board of directors declared a quarterly dividend of $0.65 per common share, payable to its shareholders on April 15.
ECL’s annual dividend of $2.60 yields 0.98% at the current price level, while its four-year average dividend yield is 1.07%. Its dividend payouts have increased at CAGRs of 6.6% and 5% over the past three and five years, respectively. Also, it has a payout ratio of 35.4%.
On November 5, 2024, ECL acquired Barclay Water Management, a leading water safety and digital monitoring solutions provider, for approximately $50 million. This acquisition enhances ECL’s portfolio by integrating Barclay’s proprietary iChlor® Monochloramine System for Legionella treatment with its ECOLAB3D™ digital platform.
Moreover, it expands the company’s reach across North America, offering customers improved water safety, extended asset life, and greater operational efficiency through reduced water and energy use.
ECL’s net sales increased 1.7% year-over-year to $4.01 billion for the fourth quarter that ended on December 31, 2024. The company’s non-GAAP adjusted operating income grew 10.2% from the year-ago value to $688.20 million. Adjusted net income and EPS attributable to Ecolab amounted to $516.60 million and $1.81, indicating growth of 16.2% and 16.8% from the prior year’s quarter, respectively.
As per the business outlook for the first quarter of 2025, ECL expects its adjusted EPS to be between $1.47 and $1.53, showing a 10% to 14% growth from the year-ago value.
Street expects ECL’s EPS for the first quarter (ending March 2025) to increase 12.7% year-over-year to $1.51, while its revenue is expected to come in at $3.73 billion. Moreover, the company topped the consensus EPS estimates in each trailing four quarters, which is impressive.
Shares of ECL have surged 19.5% over the past year and 13.4% year-to-date to close the last trading session at $265.69.
ECL’s bright prospects are reflected in its POWR Ratings. The stock has an overall rating of B, equating to a Buy in our proprietary rating system.
It also has a B grade for Stability, Sentiment, and Quality. Within the same industry, it is ranked #3 out of 13 stocks. Click here to access additional ratings of ECL for Growth, Value, and Momentum.
Stock #1: Republic Services, Inc. (RSG)
RSG offers environmental services in the United States. It is involved in the collection and processing of recyclable, solid waste, and industrial waste materials; transportation and disposal of non-hazardous and hazardous waste streams; and other environmental solutions.
Last year, in July, RSG’s board of directors approved a $0.04 increase (approximately 8%) in the company’s quarterly dividend. The quarterly dividend of $0.58 per share was paid on October 15, 2024, to shareholders of record on October 2, 2024.
RSG’s annual dividend of $2.32 translates to a yield of 0.99% at the current share price. Its four-year average dividend yield is 1.31%. Moreover, the company’s dividend payouts have increased at a CAGR of 8% over the past three years. RSG has a dividend payout ratio of 34.6%.
During the fiscal fourth quarter, which ended December 31, 2024, RSG’s revenue increased 5.6% year-over-year to $4.05 billion, while its operating income rose 14.6% from the year-ago value to $803 million. The company’s adjusted net income and EPS amounted to $497 million and $1.58, up 11.4% and 12.1% from the prior-year quarter, respectively. Also, its adjusted EBITDA grew 9.4% from the year-ago value to $1.25 billion.
The consensus revenue estimate of $4.08 billion for the first quarter (ending March 2025) represents a 5.5% increase year-over-year. The consensus EPS estimate of $1.55 for the same period reflects a 7.1% improvement year-over-year. The company has an impressive earnings surprise history; it surpassed the consensus EPS estimates in three of the trailing four quarters.
The stock has gained 25% over the past nine months to close the last trading session at $233.51.
RSG’s POWR Ratings reflect this robust outlook. The stock has an overall B rating, translating to Buy in our proprietary rating system.
It has an A grade for Stability and a B for Quality. Out of 13 stocks in the Waste Disposal industry, RSG is ranked #2. Click here to see RSG’s Growth, Value, Momentum, and Sentiment ratings.
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ECL shares were trading at $267.70 per share on Wednesday morning, up $2.01 (+0.76%). Year-to-date, ECL has gained 14.25%, versus a 2.09% rise in the benchmark S&P 500 index during the same period.
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