Waste Management (WM), Republic Services (RSG), and Waste Connections (WCN) are expected to meet Q3 expectations, with strong pricing offsetting elevated diesel costs, Deutsche Bank said in a note Friday.

Waste Management is scheduled to report earnings on Oct. 27, Republic Services on Oct. 29, and Waste Connections on Oct. 21.

The analysts said earnings before interest, taxes, depreciation, and amortization is the key metric to watch as higher diesel prices distort revenue growth and margins. Diesel prices rose about 50% year-over-year in Q3 and remained elevated into early October, above earlier expectations, they added.

"Pricing should remain healthy, while volumes should improve sequentially, with some potential risk to (discretionary) special waste volumes due to higher costs," the analysts said.

The analysts said faster-than-expected recovery in old corrugated cardboard prices could provide some upside, while lower renewable identification number prices and uncertain volume trends remain risks.

Deutsche Bank said it maintained its buy ratings on Waste Management, Republic Services, and Waste Connections.

Price: 216.06, Change: -0.78, Percent Change: -0.36