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Waste Management, Inc. (WM), headquartered in Houston, Texas, provides environmental solutions to residential, commercial, industrial, and municipal customers. With a market cap of $82.1 billion, the company provides waste management services, including collection, transfer, recycling, resource recovery, and disposal services, and operates waste-to-energy facilities.
Companies worth $10 billion or more are generally described as “large-cap stocks.” WM comfortably fits into that category, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the waste management industry. WM's recent acquisition of Winters Bros. Waste Systems, along with the pending purchase of Stericycle, underscores the company's dedication to broadening its service portfolio and market presence. These strategic moves will strengthen its asset network, foster new customer relationships, and generate anticipated synergies.
WM slipped 7.4% from its 52-week high of $225, achieved on Jul. 19. Over the past three months, WM stock has gained 3.9%, outperforming the VanEck Environmental Services ETF’s (EVX) 2.8% gains during the same time frame.
In the longer term, shares of WM have risen 16.4% on a YTD basis and climbed 33.2% over the past 52 weeks, outperforming EVX’s 12.5% YTD gains and the same returns over the last year.
To confirm the bullish trend, WM has traded above its 200-day moving averages since late October 2023.
Waste Management's performance remains stable due to consistent demand for waste management services. Population growth and technology adoption have created opportunities for the company, while the Stericycle acquisition is expected to boost earnings and cash flow, as well as enhance WM’s comprehensive waste and environmental solutions.
On Jul. 24, WM shares closed down marginally after reporting its Q2 results. Its adjusted EPS of $1.82 met Wall Street expectations. The company’s revenue was $5.40 billion, falling short of Wall Street forecasts of $5.41 billion.
In the competitive arena of waste management stocks, Republic Services, Inc. (RSG) has taken the lead over WM, showing resilience with a 24.5% uptick on a YTD basis and solid 40.4% gains over the past 52 weeks.
Wall Street analysts are moderately bullish on WM’s prospects. The stock has a consensus “Moderate Buy” rating from the 19 analysts covering it, and the mean price target of $221.84 suggests a potential upside of 6.4% from current price levels.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
