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With a market cap of $91 billion, Waste Management, Inc. (WM) is a leading comprehensive waste management and environmental services provider. Headquartered in Houston, Texas, Waste Management specializes in waste collection, recycling, and disposal solutions, serving North American residential, commercial, and industrial customers.
Shares of Waste Management have returned 20.8%, slightly outperforming the broader S&P 500 Index’s ($SPX) 20.5% rally. The stock is up 12.7% in 2025, outshining the SPX’s 2.9% rise on a YTD basis.
Zooming in further, WM stock has outperformed the VanEck Environmental Services ETF’s (EVX) 17.4% return over the past 52 weeks and 4.3% YTD gains.
Waste Management's shares gained 6.2% following its Q4 earnings release on Jan. 29. The company reported revenue of $5.89 billion, up 13% year over year and slightly ahead of analyst expectations. However, adjusted EPS of $1.70 fell 5.7% short of consensus estimates.
EBITDA came in at $1.71 billion, aligning with projections, while operating margin remained steady at 15.6%. The company issued 2025 revenue guidance of $26.68 billion at the midpoint, which was in line with estimates, and forecasted an EBITDA of $7.55 billion, slightly exceeding expectations.
For the current fiscal year, ending in December, analysts expect Waste Management’s EPS to grow 6.5% year over year to $7.70. The company’s earnings surprise history is mixed. It surpassed or matched analysts’ bottom-line estimates in three of the past four quarters while missing on one other occasion.
WM stock has a consensus “Moderate Buy” rating overall. Among the 21 analysts in coverage, 11 suggest a “Strong Buy,” one advises a “Moderate Buy,” and nine analysts recommend a “Hold.”
This configuration is slightly more bullish than three months ago, with 10 analysts advising a “Strong Buy.”
On Feb. 3, Scotiabank raised WM’s price target to $255 from $250 while maintaining an “Outperform” rating. The firm met Q4 expectations and issued 2025 guidance in line with forecasts.
The mean price target of $241.47 implies an upside potential of about 6.2%. The Street-high target price of $262 suggests the stock could rally as much as 15.2%.
