Deutsche Bank recommends investing in trash with these 2 stocks

Are you looking to add some “trash” to your investment portfolio? Well, Deutsche Bank analyst Faiza Alwy recently initiated coverage of North American waste services stocks with a positive outlook. In particular, Alwy recommended taking a closer look at Waste Management and Waste Connections as attractive opportunities in the industry.

The solid waste industry has three main stages: collection, processing and transferring, as well as disposing of solid waste into landfills. According to data from the Waste Business Journal, the waste and recycling industry generated about $91 billion in 2022, showing significant growth from $75 billion in 2019.

At Extreme Investor Network, we see the waste and recycling industry as a hidden gem for investors seeking defensive growth opportunities. With recurring volumes, annual price adjustments, and efficiencies through vertical integration, this industry can provide steady streams of cash flow for investors.

Related:  Top Income Plays of Investor Jenny Harrington

One of the key attractions of this sector is the favorable competitive dynamics among large players, which have seen consolidation over the past few decades. Alwy initiated coverage of Waste Management and Waste Connections with a buy rating, setting price targets that suggest upside potential for investors.

Waste Management, known as a leader in recycling, manages more postconsumer recyclables than any other company in North America. The company is investing in materials recovery facility (MRF) technology to lower operating costs and improve plant efficiency. Waste Connections, on the other hand, has lower exposure to recycling but is planning to increase its investments in renewable natural gas (RNG) projects.

Related:  Stocks that stand to gain or lose the most from the Fed's decision

In addition to Waste Management and Waste Connections, Alwy also initiated coverage of Republic Services and Casella Waste Systems. Each of these companies offers unique opportunities for investors, but also come with their own set of risks and potential returns.

At Extreme Investor Network, we believe in the long-term potential of the waste services industry and the opportunities it presents for investors. With a focus on free cash flow and a deep dive into company operations, our analysts provide valuable insights for investors looking to capitalize on this growing sector.

When it comes to investing in “trash,” trust Extreme Investor Network to provide you with the latest analysis and recommendations to help you build a strong and diversified portfolio. Join us today and start exploring the wealth of opportunities in the waste services industry!

Related:  Guide to Purchasing a Nasdaq Put Spread for Portfolio Protection

Source link