Key Stock Updates for Alphabet, Morgan Stanley, and ServiceNow
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Aug 29 2025
0mins
Should l Buy WM?
Source: NASDAQ.COM
Zacks Research Daily Highlights
Featured Stocks: Today's report includes research on 16 major stocks, notably Alphabet Inc. (GOOGL), Morgan Stanley (MS), and ServiceNow, Inc. (NOW), along with micro-cap stocks New England Realty Associates Limited Partnership (NEN) and Bridger Aerospace Group Holdings, Inc. (BAER). The micro-cap research is unique in the country.
Market Insights: The 'Ahead of Wall Street' article provides insights into economic releases and their potential impact on market actions, available for free on the Zacks homepage.
Alphabet Inc. (GOOGL)
Performance Overview: GOOGL shares have increased by 11.8% year-to-date, slightly below the Zacks Internet - Services industry’s 13.1% gain. The company is experiencing strong growth in its cloud and search segments.
Cloud Growth: Google Cloud's annual revenue run rate has surpassed $50 billion, driven by advancements in AI infrastructure and Generative AI Solutions. The Circle to Search feature is now active on over 300 million devices, and AI Overviews reach over 2 billion users monthly, increasing global queries by over 10%.
Challenges: Despite growth, GOOGL faces litigation issues and intense competition in the cloud sector.
Morgan Stanley (MS)
Stock Performance: MS shares have outperformed the Zacks Financial - Investment Bank industry, rising 48.7% compared to 43.5% over the past year.
Growth Drivers: The company is focusing on wealth and asset management, with projected investment banking fees and total revenues expected to grow by 3.9% and 3.6%, respectively, in 2025.
Concerns: Operating expenses are anticipated to rise by 7% this year, and uncertainty in capital market performance poses a risk.
ServiceNow, Inc. (NOW)
Market Position: ServiceNow shares have outperformed the Zacks Computers - IT Services industry, with a 7.3% increase compared to a decline of 8.6% in the industry.
Business Growth: The company reported 11 deals exceeding $5 million in net new annual contract value in Q2 2025 and raised its subscription revenue guidance for 2025 to between $12.775 billion and $12.795 billion, indicating a growth rate of 19.5-20%.
Future Outlook: ServiceNow is on track to exceed $15 billion in subscription revenues by 2026, bolstered by AI and machine learning technologies.
New England Realty Associates Limited Partnership (NEN)
Stock Performance: NEN shares have underperformed, declining by 1% compared to the Zacks Real Estate - Operations industry’s 19.2% gain.
Financial Challenges: The company faces a 26% increase in debt to $511.2 million and a rising residential vacancy rate of 2.4%.
Positive Developments: The acquisition of Hill Estates adds 399 units, enhancing cash flows, while rental income grew by 5% in H1 2025 to $41.5 million.
Bridger Aerospace Group Holdings, Inc. (BAER)
Stock Performance: BAER shares have underperformed the Zacks Aerospace - Defense industry, declining 24.1% compared to a 13.3% gain in the industry.
Operational Risks: The company faces cash burn and reliance on low-margin work, with a concentration on federal contracts posing risks.
Growth Potential: BAER operates the only CL-415EAF Scooper fleet in the U.S., benefiting from long-term government contracts and a $46 million sale-leaseback that improves liquidity.
Additional Reports
Other Notable Stocks: The report also highlights Waste Management, Seagate Technology, and Synchrony Financial, focusing on their respective growth strategies and challenges.
Market Trends: The semiconductor market is projected to grow from $452 billion in 2021 to $971 billion by 2028, indicating significant opportunities for companies in this sector.
Investment Recommendations: Zacks Investment Research offers insights into the best stocks for the upcoming month, emphasizing the importance of strategic investments in high-growth sectors.
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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: 224.180
Low
223.00
Averages
247.61
High
266.00
Current: 224.180
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.
WM: The Resilient Leader in Waste Management
- Industry Leadership: WM boasts North America's largest waste disposal network and collection fleet, generating $22.1 billion in annual revenue, solidifying its leadership in the $125 billion waste and recycling sector and demonstrating significant market influence.
- Strong Financial Performance: Despite a revenue growth rate of only 3% during the pandemic, WM achieved compound annual growth rates of 6% in revenue, 9% in earnings, and 13% in free cash flow from 2022 to 2024, showcasing its resilience throughout economic cycles.
- Robust Cash Flow: Last year, WM produced $6 billion in net cash flow from operating activities (up 12.1% year-over-year) and is allocating this strong cash flow towards acquisitions and sustainability projects, with expectations of nearly 8% compound annual growth in free cash flow through 2027.
- Enhanced Shareholder Returns: WM raised its dividend by 14.5% last year, extending its growth streak to 23 years, and announced a new $3 billion share repurchase authorization, further enhancing its appeal as a leading dividend stock.
See More
WM: The Leader in Waste Collection Industry
- Industry Leadership: WM dominates the North American waste and recycling sector with a network of 506 waste transfer facilities, 262 landfills, and 105 recycling facilities, achieving $22.1 billion in annual revenue and ensuring a competitive edge in the $125 billion market.
- Strong Financial Performance: Despite a revenue growth rate of only 3% during the pandemic, WM achieved compound annual growth rates of 6% in revenue, 9% in earnings, and 13% in free cash flow from 2022 to 2024, demonstrating business resilience and profitability.
- Enhanced Shareholder Returns: WM raised its dividend by 14.5% last year, extending its growth streak to 23 years, while also announcing a $3 billion share repurchase authorization, further solidifying its status as a leading dividend stock.
- Sustainable Investment Strategy: WM plans to invest $3 billion in sustainability projects from 2022 to 2023, with expectations of nearly 8% compound annual growth in free cash flow through 2027, ensuring future business expansion and increased shareholder value.
See More
Republic Services: An Investment Opportunity in Waste Management
- Stable Long-Term Returns: Republic Services has outperformed its competitor Waste Management and the industrial sector over the past decade, demonstrating its ability to provide reliable investment returns even amid economic fluctuations, attracting investors seeking stability.
- Long-Term Contract Security: The company signs long-term contracts with the communities it serves, ensuring predictable revenue, which enhances investor confidence, especially during uncertain economic times.
- Expansion Opportunities from Population Growth: Operating in nearly every U.S. state, particularly in fast-growing states like Florida and Texas, Republic Services is well-positioned to capitalize on demographic trends and expand its market share.
- Sustainable Dividend Growth: With a nearly 50% increase in dividends over the past five years and a manageable payout ratio of 35.84%, the company is expected to generate $15 billion in free cash flow, enhancing its appeal as a long-term investment.
See More
Republic Services: A Steady Compounder in Waste Management
- Dividend Growth Potential: Republic Services has increased its dividend by nearly 50% over the past five years, making it an attractive option for long-term investors, while its payout ratio of 35.84% indicates sustainability, boosting investor confidence.
- Market Share Expansion: Operating in nearly every U.S. state and Washington D.C., the company is well-positioned to capture market share from smaller rivals, particularly in fast-growing states like Florida and Texas, showcasing strong growth potential through scaling in recycling and regulatory mandates.
- Stable Contract Base: Republic Services typically signs long-term contracts with the communities it serves, providing clarity in revenue expectations for investors, especially during economic fluctuations where demand for waste management services remains consistent, enhancing the company's resilience.
- Superior Cash Flow Performance: Despite ending last year with $13.6 billion in debt, the company is projected to generate $15 billion in free cash flow from this year through 2030, giving it stronger cash flow metrics compared to competitors, further supporting its dividend payment capacity.
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
WM: The Resilient Leader in Waste Management
- Industry Leadership: WM boasts North America's largest waste disposal network and collection fleet, generating $22.1 billion in annual revenue, solidifying its leadership in the $125 billion waste and recycling sector and demonstrating significant market influence.
- Strong Financial Performance: Despite a revenue growth rate of only 3% during the pandemic, WM achieved compound annual growth rates of 6% in revenue, 9% in earnings, and 13% in free cash flow from 2022 to 2024, showcasing its resilience throughout economic cycles.
- Robust Cash Flow: Last year, WM produced $6 billion in net cash flow from operating activities (up 12.1% year-over-year) and is allocating this strong cash flow towards acquisitions and sustainability projects, with expectations of nearly 8% compound annual growth in free cash flow through 2027.
- Enhanced Shareholder Returns: WM raised its dividend by 14.5% last year, extending its growth streak to 23 years, and announced a new $3 billion share repurchase authorization, further enhancing its appeal as a leading dividend stock.
See More
WM: The Leader in Waste Collection Industry
- Industry Leadership: WM dominates the North American waste and recycling sector with a network of 506 waste transfer facilities, 262 landfills, and 105 recycling facilities, achieving $22.1 billion in annual revenue and ensuring a competitive edge in the $125 billion market.
- Strong Financial Performance: Despite a revenue growth rate of only 3% during the pandemic, WM achieved compound annual growth rates of 6% in revenue, 9% in earnings, and 13% in free cash flow from 2022 to 2024, demonstrating business resilience and profitability.
- Enhanced Shareholder Returns: WM raised its dividend by 14.5% last year, extending its growth streak to 23 years, while also announcing a $3 billion share repurchase authorization, further solidifying its status as a leading dividend stock.
- Sustainable Investment Strategy: WM plans to invest $3 billion in sustainability projects from 2022 to 2023, with expectations of nearly 8% compound annual growth in free cash flow through 2027, ensuring future business expansion and increased shareholder value.
See More
Republic Services: An Investment Opportunity in Waste Management
- Stable Long-Term Returns: Republic Services has outperformed its competitor Waste Management and the industrial sector over the past decade, demonstrating its ability to provide reliable investment returns even amid economic fluctuations, attracting investors seeking stability.
- Long-Term Contract Security: The company signs long-term contracts with the communities it serves, ensuring predictable revenue, which enhances investor confidence, especially during uncertain economic times.
- Expansion Opportunities from Population Growth: Operating in nearly every U.S. state, particularly in fast-growing states like Florida and Texas, Republic Services is well-positioned to capitalize on demographic trends and expand its market share.
- Sustainable Dividend Growth: With a nearly 50% increase in dividends over the past five years and a manageable payout ratio of 35.84%, the company is expected to generate $15 billion in free cash flow, enhancing its appeal as a long-term investment.
See More
Republic Services: A Steady Compounder in Waste Management
- Dividend Growth Potential: Republic Services has increased its dividend by nearly 50% over the past five years, making it an attractive option for long-term investors, while its payout ratio of 35.84% indicates sustainability, boosting investor confidence.
- Market Share Expansion: Operating in nearly every U.S. state and Washington D.C., the company is well-positioned to capture market share from smaller rivals, particularly in fast-growing states like Florida and Texas, showcasing strong growth potential through scaling in recycling and regulatory mandates.
- Stable Contract Base: Republic Services typically signs long-term contracts with the communities it serves, providing clarity in revenue expectations for investors, especially during economic fluctuations where demand for waste management services remains consistent, enhancing the company's resilience.
- Superior Cash Flow Performance: Despite ending last year with $13.6 billion in debt, the company is projected to generate $15 billion in free cash flow from this year through 2030, giving it stronger cash flow metrics compared to competitors, further supporting its dividend payment capacity.
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
