Investors sometimes flock to utility stocks or companies that offer necessary services as a way to insulate their portfolios. However, even some of the safest, most stable stocks are still struggling in this bear market.
Waste Connections Inc (TSX:WCN)(NYSE:WCN) is in the garbage business and waste disposal business. Although it should remain stable since it’s a necessary service that the company provides, it too has been falling sharply over the past few weeks.
It came close to a 52-week low last week as it’s proven that it has no immunity when there’s all-out-panic in the markets. Even though the stock’s averaged a beta of 0.5, it’s done little or prevent investors from incurring significant losses.
Now, if you’ve been holding Waste Connections for over a year, you’re still up from the stock. However, this recent market crash is a reminder that when investors are bearish on the markets, it won’t matter what’s in your portfolio.
Waste Connections has consistently posted strong profits over the years and there’s little to doubt that it won’t stay profitable or that it won’t find ways to continue growing. That’s why it may be an excellent stock to buy today. Investors have the opportunity to buy it at a relatively cheap price, especially compared to where it was just weeks ago.
While investors shouldn’t expect it to be immune to the market’s swings, it’s still a good long-term investment. The stock even pays a modest dividend of around 1% per year that can help pad your total returns.