Here’s Why Waste Connections (WCN) Climbed 15% in Q1

TimesSquare Capital Management, an equity investment management company, released its “U.S. Mid Cap Growth Strategy” first-quarter investor letter. A copy of the letter can be downloaded here. The first quarter's performance for US small to mid-cap stocks was barbelled. In the first quarter, the strategy returned 10.16% (gross) and 9.95% (net) while the Russell Midcap Growth Index returned 9.50%. In addition, please check the fund’s top five holdings to know its best picks in 2024.

TimesSquare Capital U.S. Mid Cap Growth Strategy highlighted stocks like Waste Connections, Inc. (NYSE:WCN), in the first quarter 2024 investor letter. Waste Connections, Inc. (NYSE:WCN) offers non-hazardous waste collection, transfer, disposal, and resource recovery services. One-month return of Waste Connections, Inc. (NYSE:WCN) was 6.97%, and its shares gained 22.98% of their value over the last 52 weeks. On June 27, 2024, Waste Connections, Inc. (NYSE:WCN) stock closed at $175.78 per share with a market capitalization of $45.355 billion,

TimesSquare Capital U.S. Mid Cap Growth Strategy stated the following regarding Waste Connections, Inc. (NYSE:WCN) in its first quarter 2024 investor letter:

"Many of our Industrials positions provide necessary business-to-business operational services, highly technical components, automation & efficiency improvements, or essential infrastructure services. Adding value to the strategy was Waste Connections, Inc. (NYSE:WCN), which collects, transfers, recycles, and disposes of waste for municipalities and businesses in the U.S. and Canada. Revenues and earnings topped expectations, as did management’s initial guidance for 2024. The company projects near-term growth in volumes and pricing, which recent acquisitions should make more than likely. As Waste Connection’s shares climbed 15%, we trimmed our holdings."

A fleet of waste management trucks driving through a city at sunrise.

Waste Connections, Inc. (NYSE:WCN) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 51 hedge fund portfolios held Waste Connections, Inc. (NYSE:WCN) at the end of the first quarter which was 45 in the previous quarter. The first quarter revenue of Waste Connections, Inc. (NYSE:WCN) was $2.073 billion, a 9.10% increase compared to Q1 2023. While we acknowledge the potential of Waste Connections, Inc. (NYSE:WCN) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

We discussed Waste Connections, Inc. (NYSE:WCN) in another article and shared the list of best Canadian dividend stocks. Conestoga Capital Advisors, another investment management company, benefitted from the Waste Connections, Inc.'s (NYSE:WCN) performance in Q1 2024. In addition, please check out our hedge fund investor letters Q1 2024 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.