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Reasons Why You Should Retain WM Stock in Your Portfolio

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Key Takeaways

  • WM rises 2.6% over the past three months, beating the industry. Its Q4 earnings are expected to rise 14.7%.
  • Waste Management's vast network of landfills, recycling and waste-to-energy assets supports future growth.
  • WM has paid dividends consistently since 1998, with payouts rising steadily from 2021 through 2024.

Shares of WM (WM - Free Report) have gained 2.6% over the past three months against the industry’s 1.8% decline.

The company’s fourth-quarter 2025 earnings are expected to be up 14.7% year over year. Earnings for 2025 and 2026 are expected to rise 3.9% and 10.4%, respectively, year over year. Revenues are expected to increase 14.5% in 2025 and 5.4% in 2026.

Factors That Bode Well for WM

WM’s advanced waste collection, recycling and disposal infrastructure collectively ensure sustainable long-term growth, driven by an extensive network of assets, including landfills, recycling facilities and waste-to-energy plants. Additionally, the integration of modern technology and process improvements aids the company in providing services to businesses operating across different sectors.

The essential nature of waste management services drives demand for WM’s offerings and sales volume. Consequently, the company’s stock offers steady returns and low volatility, attracting long-term investors seeking safety during market fluctuations and creating investment growth opportunities.

WM Revenue (TTM)

Waste Management, Inc. Revenue (TTM)

WM revenue-ttm | WM Quote

WM’s pricing and cost-control strategy ensures that price adjustments are aligned with the quality and reliability of its services, resulting in customer satisfaction. This strategy eliminates unnecessary costs and facilitates margin protection in fluctuating economic conditions, resulting in steady growth. The company has been a consistent dividend payer since 1998. In 2021, 2022, 2023 and 2024, it paid dividends of $970 million, $1.1 billion, $1.14 billion and $1.21 billion, respectively. This attracts investors who seek long-term, steady returns.

A Risk

WM had a current ratio of 0.84, lower than the industry's average of 0.98 in the third quarter of 2025. A current ratio below 1 often suggests that a company may not be well-positioned to meet its short-term obligations.

Zacks Rank & Stocks to Consider

WM currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here

A couple of better-ranked stocks in the industry are Zurn Elkay Water Solutions Corporation (ZWS - Free Report)  and Veralto Corporation  (VLTO - Free Report) .

Zurn Elkay carries a Zacks Rank #2 (Buy) at present. It has a long-term earnings growth expectation of 14%.

ZWS delivered a trailing four-quarter earnings surprise of 10.3% on average.

Veralto carries a Zacks Rank of 2 at present. VLTO has a long-term earnings growth expectation of 8.4%.

The company delivered a trailing four-quarter earnings surprise of 6.5% on average.


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Waste Management, Inc. (WM) - free report >>

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Veralto Corporation (VLTO) - free report >>

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