Back to top

Image: Bigstock

Core Initiatives Aid Waste Management (WM) Amid High Debt

Read MoreHide Full Article

We recently issued an updated report on Waste Management, Inc. (WM - Free Report) .

In the past year, shares of Waste Management have lost 10.9% compared with 20.3% decline of the industry it belongs to.

The waste management industry stands to benefit from growing adoption of advanced waste collection and recycling techniques. Increasing environmental concerns, rapid industrialization, increase in population and expected increase in non-hazardous waste due to rapid economic growth are expected to enhance business opportunities for waste management.

Moreover, the company continues to execute core operating initiatives targeting focused differentiation and continuous improvement, and instil 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 and process improvement help enhance service quality.

Meanwhile, the company’s cash and cash equivalent balance of $553 million at the end of fourth-quarter 2020 was well below the long-term debt level of $13.3 billion. This indicates that the company doesn’t have enough cash to meet this debt burden. The cash level, however, can meet the short-term debt of $551 million.

Zacks Rank and Stocks to Consider

Waste Management currently carries a Zacks Rank #3 (Hold).

Some better-ranked service stocks are The Interpublic Group of Companies, Inc. (IPG - Free Report) , NV5 Global (NVEE - Free Report) and TeleTech Holdings (TTEC - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The long-term expected earnings per share (three to five years) growth rate for The Interpublic Group of Companies, NV5 Global and TeleTech is pegged at 2.4%, 18% and 19.4%, respectively.

Breakout Biotech Stocks with Triple-Digit Profit Potential

The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.

Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.

See these 7 breakthrough stocks now>>