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Waste Management, Inc. (WM) is a leading waste management company in North America, offering collection, transfer, recycling, resource recovery, and disposal services to various customers. With a market cap of $81.7 billion, it also develops, operates, and owns waste-to-energy and landfill gas-to-energy facilities in the US.
Companies worth $10 billion or more are generally described as “large-cap stocks,” and Waste Management fits right into that category. Its market cap exceeds this threshold, reflecting its substantial size, stability, and influence in the waste management sector. Besides, WM's integrated business model captures the entire waste management value chain, providing better control over waste materials and consistent cash flow from a reliable customer base. The company also benefits from a growing population and economy, as increased production, consumption, and waste contribute to its long-term growth.
Despite its strengths, Waste Management stock is down 5.1% from its 52-week high of $214.54, achieved on March 28. Moreover, shares of Waste Management have dipped 2.6% over the past three months, underperforming the S&P 500 Industrial Sector SPDR’s (XLI) marginal decline over the same time frame.
However, in the long term, WM stock has soared 14.5% on a YTD basis and 24.2% over the past 52 weeks, surpassing XLI’s 6.9% returns in 2024 and 15.5% gains over the past year.
To confirm the bullish price trend, WM has consistently traded above its 200-day moving average since late October last year.
Waste Management provides essential services, ensuring stable demand, and its extensive network of transfer stations and landfills creates a competitive advantage that allows for pricing power. The company is also capitalizing on consistent demand due to the increasing urbanization and industrialization trends.
Moreover, on June 3, the company announced that it is set to acquire Stericycle, a medical waste company, for $7.2 billion to expand in the growing US healthcare waste disposal market.
Further, WM stock surged roughly over 1% following its Q1 earnings release on April 24, which showed a 5.5% year over year revenue increase to $5.2 billion and a 34.6% year over year rise in EPS to $1.75. On top of that, the company completed two major growth projects in Q1, including the launch of its largest upgraded recycling facility in Germantown, Wisconsin, and a new renewable natural gas facility near Dallas, Texas.
To emphasize the stock’s impressive price performance over the longer term, it is worth noting that its rival, GFL Environmental Inc. (GFL), trails behind WM. GFL stock has rose 2.6% over the past 52 weeks and 10.8% on a YTD basis.
Aligning with its price action, analysts are moderately bullish on the stock's outlook. Among the 18 analysts covering the stock, the consensus rating is a “Moderate Buy.” Also, its current mean price target of $220.83 suggests a potential upside of 8.4% from the current market price.
On the date of publication, Kritika Sarmah 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.
