WM Should I Buy
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Waste Management Inc (WM) is a good buy for a beginner investor with a long-term strategy and $50,000-$100,000 available for investment. The company demonstrates strong financial performance, consistent growth, and positive analyst sentiment. While technical indicators suggest a neutral to slightly bearish short-term trend, the long-term fundamentals and dividend growth make it a compelling choice.
The MACD histogram is -0.659, indicating a bearish momentum, and RSI is at 27.276, which is neutral but nearing oversold territory. Moving averages are converging, suggesting indecision in the market. Key support is at 225.044, and resistance is at 234.82, with the current price at 224.08 slightly below the pivot point of 229.932.
Analysts have consistently raised price targets, with the highest at $273, reflecting strong confidence in WM's future growth.
The company has averaged nearly 14% annual growth over the past 15 years and offers a stable dividend yield of 1.45%.
Recent financials show robust YoY growth in revenue (+7.13%), net income (+24.08%), and EPS (+23.65%).
Elevated P/E ratio of 28.2 compared to peers, which may indicate overvaluation in the short term.
Technical indicators show bearish momentum and a potential for further downside in the short term (-6.19% in the next week, -5.35% in the next month).
In Q4 2025, WM reported a revenue increase of 7.13% YoY to $6.31 billion, net income growth of 24.08% YoY to $742 million, and EPS growth of 23.65% YoY to $1.83. Gross margin also improved to 29.3%, up 2.30% YoY, showcasing strong 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 $244 (CIBC). Ratings range from Neutral to Overweight, with most analysts highlighting WM's pricing power, cost controls, and margin expansion potential.
