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Waste Management, Inc.

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Waste Management is executing well on its initiatives to refocus on the core business activities and instill price and cost discipline to achieve better margins. The company's successful cost-reduction initiatives have helped it in accomplishing remarkable gross margin expansion and EBITDA growth over the quarters. With strong yield, volume, and cost performance in the first quarter, the company also reiterated its bullish guidance for 2017. However, decline in average recycling commodity prices and recycling volumes remain significant headwinds for the company. The stock has also underperformed the industry in the last three months. Stringent government regulations are likely to contract margins as compliance with such regulations increases the operating costs for the company. The pricing environment also remains challenging and highly competitive due to aggressive bidding by smaller competitors.


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