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Waste Connections (WCN) Declined Despite Strong Results and Guidance
Conestoga Capital Advisors, an asset management company, released its second-quarter 2025 investor letter. A copy of the letter can be downloaded here. The second quarter began with a historically poor start but gained momentum later as tariff fears subsided and market volatility dropped precipitously. Conestoga Mid Cap Composite returned 3.46% net-of-fees in the quarter, trailing the Russell Mid Cap Growth Index's 18.20% return. After a strong first quarter in 2025, investor enthusiasm shifted towards high-beta and AI stocks following the "Liberation Day" announcements, creating a narrow leadership group that posed challenges for the Mid Cap Strategy in the second quarter. Please review the fund's top 5 holdings to gain insight into their key selections for 2025.
In its second quarter 2025 investor letter, Conestoga Capital Advisors highlighted stocks such as Waste Connections, Inc. (NYSE:WCN). Waste Connections, Inc. (NYSE:WCN) offers non-hazardous waste collection, transfer, disposal, and resource recovery services. The one-month return of Waste Connections, Inc. (NYSE:WCN) was 0.10%, and its shares gained 5.50% of their value over the last 52 weeks. On July 28, 2025, Waste Connections, Inc. (NYSE:WCN) stock closed at $186.06 per share, with a market capitalization of $47.97 billion.
Conestoga Capital Advisors stated the following regarding Waste Connections, Inc. (NYSE:WCN) in its second quarter 2025 investor letter:
"Waste Connections, Inc. (NYSE:WCN) is a leading provider of non-hazardous waste collection, transfer, disposal, and recycling services in the U.S. and Canada. While the company reported a strong quarter and reaffirmed its full year guidance, it was one of many low beta stocks that underperformed during the intra quarter surge in the market."
A fleet of waste management trucks driving through a city at sunrise.
Waste Connections, Inc. (NYSE:WCN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 41 hedge fund portfolios held Waste Connections, Inc. (NYSE:WCN) at the end of the first quarter, which was 49 in the previous quarter. In the second quarter of 2025, Waste Connections, Inc.'s (NYSE:WCN) revenue increased 7.1% year-over-year to $ $2.407 billion. While we acknowledge the potential of Waste Connections, Inc. (NYSE:WCN) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
In another article, we covered Waste Connections, Inc. (NYSE:WCN) and shared the list of best stocks to buy according to Brasada Capital Management. In addition, please check out our hedge fund investor letters Q2 2025 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.
