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Reasons to Retain Waste Management (WM) in Your Portfolio
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Waste Management, Inc. (WM - Free Report) is currently benefiting from its core operating performance, steady shareholder-friendly measures and solid liquidity.
The company’s earnings and revenues for 2023 are expected to grow 8.6% and 5.8%, respectively. WM has a long-term (three to five years) expected earnings growth rate of 12.6%.
Factors Favoring WM
Being a leading provider of comprehensive waste management environmental services, WM is expected to continue benefiting from ongoing trends like increasing environmental concerns, rapid industrialization, increase in population and active government measures to reduce illegal dumping. The company’s top line increased 8.8% year over year in the third quarter of 2022.
Waste Management continues to execute core operating initiatives targeting focused differentiation and continuous improvement and instilling price and cost discipline to achieve better margins. While differentiation through capitalization of extensive assets ensures long-term profitable growth and competitive advantages, cost control, process improvement and enhancements to its digital platform help enhance service quality.
Waste Management's current ratio at the end of third-quarter 2022 was pegged at 0.85, higher than the prior-year quarter’s current ratio of 0.78. An increase in the current ratio bodes well as it indicates the company’s efficiency in meeting its short-term debt obligations.
Waste Management has a dominant market capitalization and a steady dividend as well as a share repurchase policy. In 2021, 2020 and 2019, the company repurchased shares worth $1.35 billion, $402 million and $248 million, respectively. It paid $970 million, $927 million and $876 million in dividends during 2021, 2020 and 2019, respectively. It plans to return significant cash to shareholders through healthy dividends and share repurchases in the future as well.
A Risk
Waste Management has more long-term debt outstanding than cash. Cash and cash equivalents at the end of third-quarter 2022 were $137 million. The long-term debt level was $13.8 billion.
Zacks Rank and Stocks to Consider
Waste Management currently carries a Zacks Rank #3 (Hold).
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Reasons to Retain Waste Management (WM) in Your Portfolio
Waste Management, Inc. (WM - Free Report) is currently benefiting from its core operating performance, steady shareholder-friendly measures and solid liquidity.
The company’s earnings and revenues for 2023 are expected to grow 8.6% and 5.8%, respectively. WM has a long-term (three to five years) expected earnings growth rate of 12.6%.
Factors Favoring WM
Being a leading provider of comprehensive waste management environmental services, WM is expected to continue benefiting from ongoing trends like increasing environmental concerns, rapid industrialization, increase in population and active government measures to reduce illegal dumping. The company’s top line increased 8.8% year over year in the third quarter of 2022.
Waste Management continues to execute core operating initiatives targeting focused differentiation and continuous improvement and instilling price and cost discipline to achieve better margins. While differentiation through capitalization of extensive assets ensures long-term profitable growth and competitive advantages, cost control, process improvement and enhancements to its digital platform help enhance service quality.
Waste Management, Inc. Revenue (TTM)
Waste Management, Inc. revenue-ttm | Waste Management, Inc. Quote
Waste Management's current ratio at the end of third-quarter 2022 was pegged at 0.85, higher than the prior-year quarter’s current ratio of 0.78. An increase in the current ratio bodes well as it indicates the company’s efficiency in meeting its short-term debt obligations.
Waste Management has a dominant market capitalization and a steady dividend as well as a share repurchase policy. In 2021, 2020 and 2019, the company repurchased shares worth $1.35 billion, $402 million and $248 million, respectively. It paid $970 million, $927 million and $876 million in dividends during 2021, 2020 and 2019, respectively. It plans to return significant cash to shareholders through healthy dividends and share repurchases in the future as well.
A Risk
Waste Management has more long-term debt outstanding than cash. Cash and cash equivalents at the end of third-quarter 2022 were $137 million. The long-term debt level was $13.8 billion.
Zacks Rank and Stocks to Consider
Waste Management currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Business Services sector are DocuSign (DOCU - Free Report) and Booz Allen Hamilton Holding Corporation (BAH - Free Report) .
DocuSign currently sports a Zacks Rank #1 (Strong Buy). DOCU has a long-term earnings growth expectation of 13.7%.
DOCU delivered a trailing four-quarter earnings surprise of 6.6% on average.
Booz Allen presently carries a Zacks Rank #2 (Buy). BAH has a long-term earnings growth expectation of 8.9%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Booz Allen delivered a trailing four-quarter earnings surprise of 8.8% on average.