WM Should I Buy
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Waste Management Inc (WM) is not a strong buy at the moment for a beginner investor with a long-term strategy. While the company demonstrates solid financial growth, strong cash flow, and dividend increases, the technical indicators and options sentiment suggest a lack of immediate upward momentum. Additionally, insider selling and neutral hedge fund activity indicate caution. For a long-term investor, it may be better to wait for a more compelling entry point or stronger bullish signals.
The MACD is below 0 and negatively contracting, indicating bearish momentum. RSI is neutral at 26.498, and moving averages are converging, showing no clear trend. The stock is trading below the pivot level of 230.398, with support at 222.158 and resistance at 238.637.
Strong Q4 financial performance with revenue up 7.13% YoY, net income up 24.08% YoY, and EPS up 23.65% YoY.
Improved EBITDA margin at 31.3% and free cash flow up nearly 27%.
Dividend increase to $3.78 per share, reflecting strong cash generation.
Analysts have raised price targets, with several maintaining Buy or Overweight ratings.
Insider selling trends indicate potential caution among executives.
Neutral hedge fund and insider trading activity.
Technical indicators suggest bearish momentum and lack of immediate upward trend.
Wolfe Research views FY27 targets as slightly aggressive, indicating potential risks in achieving long-term goals.
In Q4 2025, Waste Management reported revenue of $6.31 billion (up 7.13% YoY), net income of $742 million (up 24.08% YoY), and EPS of $1.83 (up 23.65% YoY). Gross margin improved to 29.3% (up 2.30% YoY), and free cash flow increased by nearly 27% to $2.94 billion.
Analysts are generally positive on WM, with multiple firms raising price targets recently. The highest price target is $273, and the lowest fair value range is $202-$321. Analysts highlight strong pricing power, free cash flow growth, and sustainability investments as key drivers, but some note potential risks in achieving long-term targets.
