Is Wall Street Bullish or Bearish on Waste Management Stock?
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 13 2025
0mins
Source: NASDAQ.COM
Company Overview and Performance: Waste Management, Inc. has a market cap of $91 billion and specializes in waste management services, showing strong stock performance with a 20.8% return, slightly above the S&P 500's 20.5%. The company reported Q4 earnings with revenue of $5.89 billion, exceeding expectations, but adjusted EPS fell short.
Analyst Ratings and Future Projections: WM stock holds a consensus "Moderate Buy" rating from analysts, with a price target raised to $255 by Scotiabank, indicating potential upside. Analysts expect a 6.5% growth in EPS for the current fiscal year, reflecting a mixed earnings surprise history.
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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: 224.930
Low
223.00
Averages
247.61
High
266.00
Current: 224.930
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.
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- Otis Growth: Otis Worldwide, specializing in elevators since 1853, has a market value nearing $31 billion, with a recent dividend yield of 2.2% and a doubling of its dividend over the past five years, indicating a stable income stream and long-term investment appeal.
- WM's Steady Performance: As America's largest solid waste services company, WM has averaged nearly 14% annual growth over the past 15 years, with a dividend yield of 1.45% and an average annual increase of 10% over the last five years, showcasing its sustained demand and profitability in waste collection and recycling services.
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- Otis's Stable Income: Otis Worldwide, focusing on elevators, has a market value of nearly $31 billion with a recent dividend yield of 2.2%, doubling its payout over the past five years; despite slow growth, its maintenance revenue increased by 7% year-over-year, providing a reliable income stream for retirement.
- Leader in Waste Management: WM, as America's largest solid waste services company, has averaged nearly 14% annual growth over the past 15 years, with a dividend yield of 1.45% and a 10% average annual increase in payouts over the last five years, expected to reward shareholders long-term despite a slightly elevated current P/E ratio.
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Analysis of Stable Stock Investment Opportunities
- Industry Leader: Waste Management (WM) holds an 18% market share in the $125 billion waste and recycling industry in the U.S. and Canada, supported by its 262 solid waste landfills, which solidifies its leading position in the sector.
- Renewable Natural Gas Leader: WM is a pioneer in renewable natural gas with eight plants operational and twelve more planned, converting gases from landfills into fuel, thereby enhancing operational efficiency and sustainability.
- Award-Winning Culture: Republic Services (RSG), the second-largest player in waste collection, boasts 207 landfills and consistent revenue growth, earning numerous accolades for its corporate culture and sustainability efforts, reflecting its strong market presence.
- Successful Acquisition Strategy: Waste Connections (WCN) has achieved a staggering 594-bagger return over the past 25 years by focusing on secondary markets with less competition through a decentralized acquisition strategy, showcasing its robust growth potential and market adaptability.
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Waste Management (WM) Emerges as a Buy-on-the-Dip Candidate
- Price Dip Analysis: WM's stock has retreated 3.5% over the month ending April 2, currently sitting 5.1% below its 52-week high, indicating a relatively shallow pullback that attracts risk-averse investors.
- Strong Performance: Last year, WM reported $25.2 billion in revenue, a significant increase from $14.91 billion in 2018, showcasing its robust fundamentals and outperforming both the industrial sector and the S&P 500 over the past decade.
- Shareholder Return Initiatives: In December, WM announced a new $3 billion share repurchase program while increasing its quarterly dividend for the 23rd consecutive year, reflecting the company's commitment to returning capital to shareholders and boosting long-term investor confidence.
- Future Cash Flow Outlook: WM is projected to generate up to $19 billion in free cash flow from 2025 to 2029, which will support its ability to make strategic acquisitions and enhance shareholder rewards, further solidifying its market leadership.
See More
CIBC Capital Markets Releases Q1/26 Solid Waste Earnings Preview
- Earnings Outlook: CIBC Capital Markets has released a preview of the solid waste sector's earnings for Q1 2026, expecting stable overall performance that reflects ongoing demand for waste management services in the market.
- Market Trend Insights: The report highlights that growth in the solid waste industry is primarily driven by accelerated urbanization and environmental policy initiatives, which will create new business opportunities for related companies.
- Investor Focus: CIBC advises investors to pay attention to leading firms in the waste management sector, believing these companies will hold advantageous positions in future market competition, particularly in terms of technological innovation and service optimization.
- Industry Risk Assessment: While the overall outlook is optimistic, CIBC also cautions investors to be aware of potential policy changes and market fluctuations, as these factors could impact earnings in the solid waste sector.
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- WM Waste Management Stability: WM operates the largest landfill network in the U.S., maintaining a steady business model with a 23-year history of dividend increases, currently valued at $95 billion and a dividend yield of 1.45%, showcasing robust profitability.
- Industry Growth Potential: Analysts forecast WM's annualized earnings growth of 11% to 12% over the next three to five years, making its current stock price of $235.20 and a P/E ratio of 28 times a fair value for long-term investors.
See More
Buffett's Successor Looks to the Future
- Buffett's Succession: Berkshire Hathaway has appointed Greg Abel as the new CEO, who is expected to continue Buffett's share repurchase strategy, enhancing the company's long-term value and ensuring robust growth for decades to come.
- Otis Growth: Otis Worldwide, specializing in elevators since 1853, has a market value nearing $31 billion, with a recent dividend yield of 2.2% and a doubling of its dividend over the past five years, indicating a stable income stream and long-term investment appeal.
- WM's Steady Performance: As America's largest solid waste services company, WM has averaged nearly 14% annual growth over the past 15 years, with a dividend yield of 1.45% and an average annual increase of 10% over the last five years, showcasing its sustained demand and profitability in waste collection and recycling services.
- Investment Outlook: Although Berkshire Hathaway did not make the Motley Fool's list of the top 10 stocks, its long-term stability and strong dividend income still make it a noteworthy investment choice, especially in a rapidly changing market environment.
See More
Three Quality Companies for Long-Term Investment
- Buffett's Investment Choice: Berkshire Hathaway, under new CEO Greg Abel, continues its share buyback strategy, expected to remain in good shape for the future due to its subsidiaries in stable industries like transportation and energy, generating billions in annual dividend income.
- Otis's Stable Income: Otis Worldwide, focusing on elevators, has a market value of nearly $31 billion with a recent dividend yield of 2.2%, doubling its payout over the past five years; despite slow growth, its maintenance revenue increased by 7% year-over-year, providing a reliable income stream for retirement.
- Leader in Waste Management: WM, as America's largest solid waste services company, has averaged nearly 14% annual growth over the past 15 years, with a dividend yield of 1.45% and a 10% average annual increase in payouts over the last five years, expected to reward shareholders long-term despite a slightly elevated current P/E ratio.
- Market Attractiveness Analysis: Berkshire's P/E ratio stands at 21.6, Otis at 17.7, and WM at 28.2; while WM appears slightly overvalued, the stability and consistent returns of these companies in their respective sectors make them compelling long-term investment options.
See More
Analysis of Stable Stock Investment Opportunities
- Industry Leader: Waste Management (WM) holds an 18% market share in the $125 billion waste and recycling industry in the U.S. and Canada, supported by its 262 solid waste landfills, which solidifies its leading position in the sector.
- Renewable Natural Gas Leader: WM is a pioneer in renewable natural gas with eight plants operational and twelve more planned, converting gases from landfills into fuel, thereby enhancing operational efficiency and sustainability.
- Award-Winning Culture: Republic Services (RSG), the second-largest player in waste collection, boasts 207 landfills and consistent revenue growth, earning numerous accolades for its corporate culture and sustainability efforts, reflecting its strong market presence.
- Successful Acquisition Strategy: Waste Connections (WCN) has achieved a staggering 594-bagger return over the past 25 years by focusing on secondary markets with less competition through a decentralized acquisition strategy, showcasing its robust growth potential and market adaptability.
See More
Waste Management (WM) Emerges as a Buy-on-the-Dip Candidate
- Price Dip Analysis: WM's stock has retreated 3.5% over the month ending April 2, currently sitting 5.1% below its 52-week high, indicating a relatively shallow pullback that attracts risk-averse investors.
- Strong Performance: Last year, WM reported $25.2 billion in revenue, a significant increase from $14.91 billion in 2018, showcasing its robust fundamentals and outperforming both the industrial sector and the S&P 500 over the past decade.
- Shareholder Return Initiatives: In December, WM announced a new $3 billion share repurchase program while increasing its quarterly dividend for the 23rd consecutive year, reflecting the company's commitment to returning capital to shareholders and boosting long-term investor confidence.
- Future Cash Flow Outlook: WM is projected to generate up to $19 billion in free cash flow from 2025 to 2029, which will support its ability to make strategic acquisitions and enhance shareholder rewards, further solidifying its market leadership.
See More
CIBC Capital Markets Releases Q1/26 Solid Waste Earnings Preview
- Earnings Outlook: CIBC Capital Markets has released a preview of the solid waste sector's earnings for Q1 2026, expecting stable overall performance that reflects ongoing demand for waste management services in the market.
- Market Trend Insights: The report highlights that growth in the solid waste industry is primarily driven by accelerated urbanization and environmental policy initiatives, which will create new business opportunities for related companies.
- Investor Focus: CIBC advises investors to pay attention to leading firms in the waste management sector, believing these companies will hold advantageous positions in future market competition, particularly in terms of technological innovation and service optimization.
- Industry Risk Assessment: While the overall outlook is optimistic, CIBC also cautions investors to be aware of potential policy changes and market fluctuations, as these factors could impact earnings in the solid waste sector.
See More
Tech Sell-Off Highlights Need for Portfolio Diversification
- RTX Defense Advantage: As the U.S. military seeks to replenish its arsenal post-Iran war, RTX, the parent company of Raytheon, is poised to benefit from increased defense spending, currently valued at $263 billion with a dividend yield of 1.39%.
- Aviation Engine Market: RTX's business in aviation engines and control systems locks in years of revenue from jet engine sales, with only 40% of estimated 2026 earnings allocated for dividends, indicating strong financial health.
- WM Waste Management Stability: WM operates the largest landfill network in the U.S., maintaining a steady business model with a 23-year history of dividend increases, currently valued at $95 billion and a dividend yield of 1.45%, showcasing robust profitability.
- Industry Growth Potential: Analysts forecast WM's annualized earnings growth of 11% to 12% over the next three to five years, making its current stock price of $235.20 and a P/E ratio of 28 times a fair value for long-term investors.
See More
