Waste Management Ranked Among Top Defensive Stocks
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 24 2026
0mins
Should l Buy WM?
Source: Yahoo Finance
- Strong Market Position: Waste Management, Inc. (WM) is recognized as one of the most reliable defensive stocks in the market, providing waste collection services that are independent of consumer spending, ensuring a stable revenue stream.
- Industry Leader: WM owns the largest network of landfills in North America, with competitors often paying tipping fees, further solidifying its market dominance and reducing competitive threats from new entrants.
- Strong Pricing Power: WM's contracts typically include CPI-linked price escalators, allowing the company to automatically raise prices during inflationary periods, thereby protecting its profit margins from being squeezed.
- Share Repurchase Program: The board recently authorized a $1.5 billion share repurchase program, demonstrating its strong capital allocation strategy and confidence in future growth.
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Analyst Views on WM
Wall Street analysts forecast WM stock price to rise
20 Analyst Rating
15 Buy
5 Hold
0 Sell
Strong Buy
Current: 217.650
Low
223.00
Averages
247.61
High
266.00
Current: 217.650
Low
223.00
Averages
247.61
High
266.00
About WM
Waste Management, Inc. is a provider of environmental solutions. The Company provides collection, recycling, and disposal services to millions of residential, commercial, industrial, and municipal customers throughout the United States and Canada. Its segments include East Tier, West Tier, Recycling Processing and Sales, WM Renewable Energy, and WM Healthcare Solutions. East Tier primarily consists of geographic areas located in the Eastern U.S., the Great Lakes region and all of Canada. The West Tier primarily includes geographic areas located in the Western U.S., including the upper Midwest region and British Columbia, Canada. Recycling Processing and Sales includes the processing and sales of materials collected from residential, commercial, and industrial customers. WM Renewable Energy develops, operates, and promotes projects for the beneficial use of landfill gas. WM Healthcare Solutions includes Regulated Waste and Compliance Services and Secure Information Destruction services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Growth Investment Opportunities Amid Market Volatility
- Carvana Earnings Highlights: Carvana reported a 58% year-over-year revenue growth in Q4, reaching $5.6 billion, although its EBITDA of $511 million fell short of the expected $535.7 million, indicating strong revenue growth potential despite high cost pressures.
- Block Stock Analysis: While Block's stock has stagnated since its pandemic peak, analysts overwhelmingly rate it as a strong buy, with a 12-month price target of $87.27, suggesting a 25% upside from current levels, reflecting confidence in its future growth.
- WM's Market Position: Waste Management holds a significant position in the U.S. waste management market with over 260 landfills and 500 transfer facilities, and as waste generation continues to rise, the company is poised to benefit from increasing demand.
- Long-term Investment Returns: WM has outperformed the S&P 500 over the past decade, and despite recent spending pressures from its entry into the medical waste sector, its 23 consecutive years of per-share dividend growth and ongoing stock buybacks provide a stable return outlook for investors.
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WASTE MANAGEMENT INC: RAYMOND JAMES INCREASES TARGET PRICE FROM $238 TO $243
Company Overview: Waste Management Inc. is a leading provider of waste management services in North America.
Stock Price Update: Raymond James has raised the target price for Waste Management's stock to $243 from $238.
See More
Waste Management Reports Mixed Q1 Results with Earnings Beat
- Performance Overview: Waste Management Inc reported Q1 earnings that exceeded expectations, although specific figures were not disclosed, indicating strengths in cost control and operational efficiency, despite sales falling short of market forecasts, reflecting challenges from increased industry competition.
- Sales Shortfall: While earnings were strong, the sales figures did not meet analyst expectations, which could undermine investor confidence in the company's future growth potential, particularly amid heightened economic uncertainty.
- Analyst Target Revisions: Following the earnings report, analysts revised their price targets for Waste Management, reflecting varying market perspectives on the company's future performance, which may lead to stock price volatility.
- Market Reaction: Investor reactions to the mixed results could influence Waste Management's stock price trajectory, especially as the company seeks to enhance sales and market share, making future strategic adjustments critical.
See More
WASTE MANAGEMENT INC: RBC Increases Target Price from $235 to $240
- RBC Price Increase: RBC has raised its price target for StarGate from $235 to $240.
- Market Implications: This adjustment reflects RBC's positive outlook on StarGate's performance in the market.
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Waste Management Q1 2026 Earnings Highlights
- Operating EBITDA Growth: Waste Management's operating EBITDA grew nearly 6% in Q1 2026 compared to Q1 2025, indicating the company's ability to maintain profitability while continuously optimizing operational efficiency in a competitive market.
- Significant Free Cash Flow Increase: The first quarter free cash flow reached $920 million, nearly doubling from the same period last year, enabling the company to return approximately $730 million to shareholders through dividends and share repurchases, thereby enhancing investor confidence.
- Renewable Energy Business Doubling: In the renewable energy sector, operating EBITDA more than doubled following the commissioning of seven new natural gas facilities, showcasing the company's proactive positioning in the green energy transition and its market potential.
- Record Safety Performance: Despite challenges from winter weather, Waste Management achieved its best-ever safety record in Q1, with driver and technician turnover at 17.2%, reflecting ongoing improvements in employee management and safety culture.
See More
Waste Management Reports Strong Q1 Earnings, Reaffirms FY 2026 Guidance
- Earnings Beat: Waste Management reported Q1 adjusted earnings of $723 million, or $1.79 per share, significantly up from $637 million and $1.58 per share a year earlier, indicating sustained improvement in profitability.
- Guidance Reaffirmed: The company reaffirmed its FY 2026 revenue guidance of $26.425 billion to $26.625 billion, aligning with the FactSet analyst consensus of $26.5 billion, reflecting management's confidence in future performance.
- Profitability Improvement: Operating EBITDA in the Collection and Disposal segment increased by $154 million, with margins expanding by 190 basis points, primarily due to a favorable price-to-cost spread, showcasing the effectiveness of investments in technology and automation.
- Business Challenges: Despite strong overall performance, Q1 collection and disposal volumes fell by 1.5%, largely due to winter weather and a reduction in lower-margin residential business, highlighting the company's vulnerability to external environmental changes.
See More
Growth Investment Opportunities Amid Market Volatility
- Carvana Earnings Highlights: Carvana reported a 58% year-over-year revenue growth in Q4, reaching $5.6 billion, although its EBITDA of $511 million fell short of the expected $535.7 million, indicating strong revenue growth potential despite high cost pressures.
- Block Stock Analysis: While Block's stock has stagnated since its pandemic peak, analysts overwhelmingly rate it as a strong buy, with a 12-month price target of $87.27, suggesting a 25% upside from current levels, reflecting confidence in its future growth.
- WM's Market Position: Waste Management holds a significant position in the U.S. waste management market with over 260 landfills and 500 transfer facilities, and as waste generation continues to rise, the company is poised to benefit from increasing demand.
- Long-term Investment Returns: WM has outperformed the S&P 500 over the past decade, and despite recent spending pressures from its entry into the medical waste sector, its 23 consecutive years of per-share dividend growth and ongoing stock buybacks provide a stable return outlook for investors.
See More
WASTE MANAGEMENT INC: RAYMOND JAMES INCREASES TARGET PRICE FROM $238 TO $243
Company Overview: Waste Management Inc. is a leading provider of waste management services in North America.
Stock Price Update: Raymond James has raised the target price for Waste Management's stock to $243 from $238.
See More
Waste Management Reports Mixed Q1 Results with Earnings Beat
- Performance Overview: Waste Management Inc reported Q1 earnings that exceeded expectations, although specific figures were not disclosed, indicating strengths in cost control and operational efficiency, despite sales falling short of market forecasts, reflecting challenges from increased industry competition.
- Sales Shortfall: While earnings were strong, the sales figures did not meet analyst expectations, which could undermine investor confidence in the company's future growth potential, particularly amid heightened economic uncertainty.
- Analyst Target Revisions: Following the earnings report, analysts revised their price targets for Waste Management, reflecting varying market perspectives on the company's future performance, which may lead to stock price volatility.
- Market Reaction: Investor reactions to the mixed results could influence Waste Management's stock price trajectory, especially as the company seeks to enhance sales and market share, making future strategic adjustments critical.
See More
WASTE MANAGEMENT INC: RBC Increases Target Price from $235 to $240
- RBC Price Increase: RBC has raised its price target for StarGate from $235 to $240.
- Market Implications: This adjustment reflects RBC's positive outlook on StarGate's performance in the market.
See More
Waste Management Q1 2026 Earnings Highlights
- Operating EBITDA Growth: Waste Management's operating EBITDA grew nearly 6% in Q1 2026 compared to Q1 2025, indicating the company's ability to maintain profitability while continuously optimizing operational efficiency in a competitive market.
- Significant Free Cash Flow Increase: The first quarter free cash flow reached $920 million, nearly doubling from the same period last year, enabling the company to return approximately $730 million to shareholders through dividends and share repurchases, thereby enhancing investor confidence.
- Renewable Energy Business Doubling: In the renewable energy sector, operating EBITDA more than doubled following the commissioning of seven new natural gas facilities, showcasing the company's proactive positioning in the green energy transition and its market potential.
- Record Safety Performance: Despite challenges from winter weather, Waste Management achieved its best-ever safety record in Q1, with driver and technician turnover at 17.2%, reflecting ongoing improvements in employee management and safety culture.
See More
Waste Management Reports Strong Q1 Earnings, Reaffirms FY 2026 Guidance
- Earnings Beat: Waste Management reported Q1 adjusted earnings of $723 million, or $1.79 per share, significantly up from $637 million and $1.58 per share a year earlier, indicating sustained improvement in profitability.
- Guidance Reaffirmed: The company reaffirmed its FY 2026 revenue guidance of $26.425 billion to $26.625 billion, aligning with the FactSet analyst consensus of $26.5 billion, reflecting management's confidence in future performance.
- Profitability Improvement: Operating EBITDA in the Collection and Disposal segment increased by $154 million, with margins expanding by 190 basis points, primarily due to a favorable price-to-cost spread, showcasing the effectiveness of investments in technology and automation.
- Business Challenges: Despite strong overall performance, Q1 collection and disposal volumes fell by 1.5%, largely due to winter weather and a reduction in lower-margin residential business, highlighting the company's vulnerability to external environmental changes.
See More
