NYSE:WM

Waste Management (WM)

224.08
+1.20 (0.54%)
as of Jul 1, 2026, 8:00:00 pm Market Open.
114 watching
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Investor Insights
star iconJul 1, 2026, 12:00 am

This summary was created by AI, based on 8 opinions in the last 12 months.

Waste Management (WM) has garnered positive reviews from various experts, highlighting its stability and reliability in cash flows due to its essential nature in waste management services. Analysts note a strong competitive position, thanks to high barriers to entry such as regulatory difficulties in acquiring landfill permits, which significantly reduces competition. While WM provides steady growth—approximately 10% in earnings—and is seen as a defensive investment amid market uncertainties, concerns have been raised regarding its valuation, with a price-to-earnings (PE) ratio around 25x to 40x being deemed high for the growth expectations. Nevertheless, it's recommended for long-term holding due to its strong market position and resilience in a defensive portfolio.

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Consensus
Positive
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Valuation
Overvalued
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Similar
WCN
HOLD

Classified as an industrial, but it doesn't have cyclicality. Zero product obsolescence. Sold WCN in favour of this one.

SELL

Great, stable business model. Wide economic moat, barriers to entry. Streamlined costs. Tends to do well in more of a down or sideways market, similar to healthcare or consumer staples. Started to underperform last October. Decent yield of 1.67%.

PAST TOP PICK
(A Top Pick Jun 16/22, Up 18%)

A treasure in a challenging market environment. A light industrial, since there isn't much cyclicality. Good line of sight to high single-digit organic growth rate. Tuck-in acquisitions. Vertically integrated. Good recycling business, with an emerging renewable nat gas division. A happy shareholder.

HOLD
His preferred way to play the space. Cleaner balance sheet. Best in class, "A" credit so borrowing is cheaper. "Highgrated" up from GFL a number of months ago.
BUY
In difficult economic environments, investors sometimes trade up to one best-in-class name in a sector. He sold WCN in favour of WM, which is bigger, more profitable, stronger credit rating. WN is a better quality business at a less demanding multiple. All waste management takes on debt to finance acquisitions.
BUY ON WEAKNESS
Very stable business that has good long term prospects. Long term contracts with recurring revenue. Service is something people always need. Multiples are high, so would wait to buy. Overall, is a good investment.
BUY
Just made a new 5-year high. Technically, that's very attractive. Everyone's making money, so no one's looking for a spot to get out. Waste sector is doing well, as the economy has reopened. Likes it technically and fundamentally. He could buy it here.
TOP PICK
Biggest and best in class in US solid waste. Collection, recycling, transfer, and landfill. A light industrial, because waste collection is a need. Pricing power not as strong, but volume makes up for it. Integrated ownership of landfills avoids NIMBY issues. A-rated balance sheet, almost bullet-proof. Dividend growth 6% annually, earnings about 8%. Yield is 1.81%. (Analysts’ price target is $171.25)
COMMENT
The biggest player in the waste-disposal business. They are tied to the economy--more commerce and construction business translates into more garbage. That's why this stock has been falling in he last two weeks. They reported an in-line quarter today, neither inflaming the bears or bulls.
DON'T BUY
Earnings and price stability. Collecting garbage doesn't go away despite the economy. Trades at close to 30x earnings, which is excessive for a relatively slow grower. Sees more downside risk than upside potential.
DON'T BUY
A very good company that is classified as recession proof and highly predictable. Yields on their collection business is firming and prices of recycling is good. Trades at 30x earnings. Traditionally a 5-6% grower. Unless they pick up more contracts, they will continue to grow according to economic growth. Valuation is too high here.
WEAK BUY

WM vs. WCN Fell last year, and now is picking up steam. It's more of a utility industrial than a cyclical. If you want cyclical, look at CAT or other industrial names. 28x forward earnings for 11% growth, so a bit rich for him. Fundamentally, a great business. Better valuation than WCN and growth is about the same. To choose, he'd pick WM, the larger one.

DON'T BUY
Whole industry is mature and grows through consolidation. A local business, so prices are set by marginally small players. Not an area she's interested in. Other industries have more exciting growth opportunities than by acquisition alone.
COMMENT
Is there a relationship between the hot EV craze, Biden in office now and ESG with WM, America's biggest recycler? Doesn't see a connection. WM makes the most business out of home building and construction, instead. Also in fuel cells and methane, but those just aren't ESG. He likes WM though.
BUY
They just reported a top and bottom beat. It's a bellweather for the entire market.
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