WM Should I Buy
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Waste Management Inc (WM) is a good buy for a beginner investor with a long-term focus and $50,000-$100,000 available for investment. The company's strong financial performance, consistent dividend growth, and positive analyst sentiment make it a stable choice. Despite a minor pre-market dip, the stock's long-term growth potential, supported by sustainability investments and free cash flow growth, aligns well with the user's investment strategy.
The MACD is positive and expanding, indicating bullish momentum. RSI is neutral at 71.85, and moving averages are converging, suggesting no immediate overbought or oversold conditions. The stock is trading near its first resistance level (R1: 231.723), with support at 227.154.
Analysts have consistently raised price targets, with the highest target at $273, reflecting confidence in the company's growth.
WM's strong financials, including a 24.08% YoY increase in net income and a 23.65% YoY increase in EPS for Q4
Dividend growth streak of 23 years and a new $3 billion share repurchase authorization.
Sustainability investments expected to drive 8% CAGR in free cash flow through 2027.
Minor pre-market dip of -0.69%.
Republic Services, a competitor, has outperformed WM over the past decade and is expanding in high-growth states, which could increase competitive pressure.
In Q4 2025, WM reported a 7.13% YoY revenue increase to $6.31 billion, a 24.08% YoY net income increase to $742 million, and a 23.65% YoY EPS increase to $1.83. Gross margin improved by 2.30% YoY to 29.3%. These results highlight strong growth and operational efficiency.
Analysts are overwhelmingly positive on WM, with multiple firms raising price targets recently. The highest target is $273 (Wells Fargo), and the lowest is $242 (CIBC). Most analysts maintain Overweight or Outperform ratings, citing strong cost control, recycling tailwinds, and pricing-led growth.
