It was a good year for waste management companies Waste Management, Republic Services, and Clean Harbors. All three saw their stock prices rise between 32% and 36% for the year. And it was an absolutely stellar year for Casella Waste Systems , which saw its stock more than double in price. Compared to an 11.2% gain for the S&P 500, those results should have investors singing a happy tune.

But that rising tide of trash didn’t lift all boats. Medical waste disposer Stericycle disappointed investors, dropping 34.6% after disappointing earnings reports weighed down the stock. However, that could mean it’s poised for a rally in 2017. Let’s look at where the industry is headed and see how these companies are likely to fare.

Three of the companies — Waste Management, Republic Services, and Casella Waste Management — rely on fairly typical refuse hauling, recycling, and landfill management for the bulk of their income. The primary reason for their stock price increases was a solid earnings report from each. That’s good, because it means their gains weren’t completely speculative.

Take, for example, the final earnings report each company released in 2016 — for the third quarter of 2016 — which they all released in November. Waste Management grew adjusted net income by 11.6% year over year. Republic Services’ adjusted net income grew by 15.1% year over year. And Casella’s grew an incredible 233.6% year over year, prompting its president, Edwin Johnson, to declare on the company’s Q3 earnings call, “[T]his was the best quarter on both an EBITDA and net income from continuing operations basis in 10 years.” Adjusted EPS was also up for all three companies.

More important than the actual numbers themselves were the reasons behind the numbers. Throughout 2016, Casella grew income and margins and reduced its debt load and its operating costs. Waste Management reduced customer churn throughout the year and has been reconfiguring its underperforming recycling contracts to better account for recent price declines for recycled materials. Republic Services has been rewriting its renewing contracts under more favorable terms. These efforts are likely to continue throughout 2017 to the benefit of the companies.

Also, it’s worth noting that aside from some operations in New York and Pennsylvania, Casella’s operations are in areas that aren’t served by Republic Services, so that’s one fewer competitor for each company. It also makes one wonder whether a merger wouldn’t be out of the question.

Clean Harbors is a bit different from the other companies mentioned here. Unlike those more traditional trash haulers, Clean Harbors performs specialty waste removal and cleanup work. That includes hazardous waste management, emergency spill response, and industrial cleaning and maintenance. Through its Safety-Kleen subsidiary, Clean Harbors is also the largest rerefiner and recycler of used oil in North America.

But just because it serves a niche market doesn’t mean it’s a small company. It brought in $3.3 billion in revenue in 2015. Clean Harbors currently sports a $3.1 billion market cap, much larger than Casella’s $470 million, but much smaller than either Waste Management’s $31.1 billion or Republic Services’ $19.7 billion. Still, on Clean Harbors’ website, it boasts that “a majority of the Fortune 500 companies” are among its clients, a testament to its leading position in the industry.

To read the full story, visit https://www.fool.com/investing/2017/02/14/this-industry-had-plenty-winners-1-big-loser-2016.aspx.

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