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Reasons Why You Should Retain Waste Management Stock for Now

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Key Takeaways

  • WM shares rose 6.7% in a month, beating the industry's 2.5% gain. Q1 earnings are expected to grow 5.4% y/y.
  • Waste Management's waste collection, recycling and disposal network supports steady long-term growth.
  • WM expanded seven renewable gas facilities and upgraded five recycling sites. It pays dividends consistently.

Shares of Waste Management (WM - Free Report) have gained 6.7% over the past month, outperforming the industry’s 2.5% growth.

WM has a Growth Score of B. This style score condenses key financial metrics to reflect a fair sense of the quality and sustainability of its growth.

The company’s first-quarter 2026 earnings are expected to increase 5.4% year over year. Earnings for 2026 and 2027 are projected to rise 8.8% and 14%, respectively, year over year. Revenues are expected to increase 5.3% in 2026 and 5.6% in 2027.

Factors That Bode Well for WM

Waste Management, with its robust waste collection, recycling and disposal infrastructure, ensures steady and sustainable long-term growth while building competitive advantages. Additionally, its focus on the conversion of landfill gas into renewable energy, integration of modern technology and process improvements aids WM in providing services to businesses operating across different sectors.

WM’s pricing and cost-control strategies ensure that price adjustments are aligned with the quality and reliability of its services. These strategies impact its bottom line.

The company is focusing on optimizing its healthcare solutions business through the Stericycle acquisition. Recently, it expanded its renewable energy network by commissioning seven new renewable natural gas facilities, enhanced the performance of its recycling network by completing automation upgrades at five recycling facilities and added facilities in four new markets.

WM has been a consistent dividend payer since 1998. In 2021, 2022, 2023, 2024 and 2025, it paid dividends of $970 million, $1.1 billion, $1.1 billion, $1.2 billion and $1.3 billion, respectively. Such moves create shareholders’ value and instill confidence in the stock.

Key Risk Factor

WM had a current ratio of 0.89, lower than the industry's average of 1 in the last quarter. 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

Waste Management 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 broader Zacks Business Services sector are Coherent Corp. (COHR - Free Report)  and Deluxe  (DLX - Free Report) .

Coherent carries a Zacks Rank #2 (Buy) at present. It has a long-term earnings growth expectation of 29.9%.

COHR delivered a trailing four-quarter earnings surprise of 7.7% on average.

Deluxe also has a Zacks Rank of 2 at present. It has a long-term earnings growth expectation of 12%.

DLX delivered a trailing four-quarter average earnings surprise of 15.6%.

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