What is the circular economy and why does it matter for investors?

The circular economy is an economic system designed to eliminate waste and continually reuse resources. Instead of the traditional "take-make-dispose" model, it focuses on reducing, reusing, recycling, and recovering materials. For investors, this represents a growing market opportunity as companies that can successfully implement circular business models often reduce costs, mitigate supply risks, and appeal to sustainability-conscious consumers and partners—potentially leading to competitive advantages and long-term growth.

How do waste management companies generate profit from trash?

Waste management companies make money in several ways: they collect fees for pickup and disposal services, sort and sell recyclable materials like paper, glass, and metals to manufacturers, convert organic waste into compost for sale, generate and sell renewable energy from landfill gas or waste incineration, and develop specialized solutions for hazardous materials. The most innovative companies in this sector have transformed from simple disposal services into sophisticated resource recovery operations that extract maximum value from what most consider worthless.

What is PET resin and why is recycling it valuable?

PET (polyethylene terephthalate) is one of the most common plastics, used in everything from water bottles to clothing fibers. Recycling it is valuable because virgin PET production is petroleum-intensive and contributes to plastic pollution. Companies that can efficiently convert used PET back into virgin-quality resin create multiple benefits: they reduce waste heading to landfills, decrease the need for new petroleum resources, lower carbon emissions, and meet the growing demand from brands committed to using recycled content. This creates a profitable business model while addressing environmental challenges.

What does "supercritical water oxidation" mean?

Supercritical water oxidation (SCWO) is an advanced waste treatment process that uses water at extremely high temperatures and pressures—beyond its critical point (374°C and 218 atm). In this state, water becomes a powerful solvent that can rapidly break down complex organic compounds in waste. The process effectively destroys harmful substances while producing clean water, recoverable minerals, and thermal energy. It's a highly efficient technology for treating difficult wastes including industrial sludges, medical waste, and contaminated materials that conventional methods struggle to process safely.

How do dividend yields relate to these waste transformation companies?

Dividend yield shows how much a company pays in annual dividends relative to its stock price, expressed as a percentage. Many established waste management and resource recovery companies offer dividends because they typically generate stable cash flows from their ongoing operations. While younger, technology-focused transformation companies might reinvest profits into growth rather than pay dividends, mature players in this sector often provide investors with income in addition to potential stock appreciation. When considering these stocks, the dividend yield helps you understand the income component of your potential return.

14 handpicked stocks

The Alchemists

These innovative companies have mastered the art of turning the overlooked into gold. Carefully selected by our expert analysts, this collection features businesses that create real value from waste materials, industrial byproducts, and untapped resources—transforming the ordinary into extraordinary profits.

Han Tan | Market Analyst

Published on June 17

Top Picks from This Group

Here are a few of the assets in this group. Create an account to unlock the full list.

PURECYCLE TECHNOLOGIES INC

PCT

Current price

$13.24

Its patented technology recycles waste polypropylene into ultra-pure, virgin-like resin.

Waste Connections, Inc.

WCN

Current price

$173.03

This company generates value from waste streams through recycling and renewable fuels generation.

Casella Waste Systems Inc

CWST

Current price

$90.60

It operates as a vertically integrated solid waste company with a strong focus on resource renewal and recycling.

Waste Management, Inc.

Current price

$217.67

Republic Services, Inc.

RSG

Current price

$222.57

LOOP INDUSTRIES INC

LOOP

Current price

$1.52

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12 Month Growth Potential

Use the growth calculator to see how much investing in these assets could return over one year, based on aggregated analyst sentiment provided by Refinitive Ltd.

If you invested across these assets:

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In 12 months it might be worth:

$1,000.00

+66.47%

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About This Group of Stocks

Our Expert Thinking

We've identified companies with proven abilities to create treasure from trash—literally. These modern alchemists have developed technologies that transform waste materials, industrial byproducts, and raw data into high-value products, creating profit where others see nothing but cost.

What You Need to Know

These companies sit at the intersection of innovation and sustainability, turning environmental challenges into business opportunities. They're positioned to benefit from the global shift toward resource efficiency, circular economies, and waste reduction—trends that are only growing stronger.

Why These Stocks

Each company was selected for its specialized technology or process that gives it a competitive edge in resource transformation. They have scalable business models centered on creating value from underutilized or discarded materials, with proven ability to monetize what others consider worthless.

Group Performance Snapshot

66.47%

Average 12 Month Profit

On average, analysts expect assets in this group to grow 66.47% over the next year.

13 of 14

Stocks Rated Buy by Analysts

13 of 14 assets in this group are rated Buy by professional analysts.

Source: Analyst sentiment is provided by Refinitiv Ltd, a global leader in financial market data with over 40k business clients. Refinitiv Ltd is an independent third party to Nemo. This is not advice.

Why You'll Want to Watch These Stocks

♻️

Tomorrow's Necessities

As regulations tighten on waste and sustainability becomes non-negotiable, these companies aren't just trendy—they're becoming essential to how modern industry operates.

💰

Hidden Value Creators

These companies have figured out how to make money where others see only costs and problems—giving them a unique economic advantage that many investors haven't fully recognized yet.

🔮

Riding the Green Wave

With billions being invested in sustainable solutions worldwide, these resource innovators are perfectly positioned to benefit from one of the biggest economic shifts of our lifetime.

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