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Here's Why Investors Must Hold WM Stock in Their Portfolios Now
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Key Takeaways
WM uses AI and machine learning to optimize routes, cut costs and support margin expansion.
Stericycle added $653M to WM's net cash and boosted 2025 operating income by $245M.
WM's debt reached $23.3B as of June 30, 2026, while cash stood at $557M and its current ratio was 0.91.
WM (WM - Free Report) shares have moved up 2.4% in the past three months. Meanwhile, the industry and the Zacks S&P 500 Composite have returned 3.8% and 3.6%, respectively.
3-Month Share Price Performance
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for 2026 revenues is pinned at $26.4 billion, suggesting 4.6% year-over-year growth. For 2027, the consensus estimate is $27.8 billion, implying a 5.4% increase from the preceding year’s actual.
Image Source: Zacks Investment Research
For EPS, the consensus mark for 2026 is pegged at $8.14, indicating 8.5% year-over-year growth. The Zacks Consensus Estimate for 2027 EPS is pegged at $9.06. The figure suggests 11.3% year-over-year growth.
Image Source: Zacks Investment Research
Factors That Augur Well for WM’s Success
Tech-Driven Efficiencies Bolster Margins: WM strengthens its margin profile utilizing tech-backed efficiencies. The SmartTruck platform, a combination of AI and machine learning, generates more than $300 million in annual run-rate EBITDA via route optimization, service upgrades, and lower operating expenses.
These innovations kept operating expenses below 60% of the top line for the sixth consecutive quarter despite headwinds. The company is expanding its tech pipeline to incorporate AI tools, autonomous long-haul vehicles and remotely operated heavy equipment to lower operating costs, improve the top line, and act as the catalyst for margin expansion.
Stericycle Buyout Boosts Cash Position: WM’s recent acquisition of Stericycle complements its business platform in medical waste, a sector with robust growth dynamics. In 2025, the company recorded a $653-million increase in net cash, driven by the recent buyout. Stericycle was responsible for a $245-million rise in income from operations during 2025.
Dividends Attract Income-Seeking Investors: WM has paid out dividends to its shareholders since 1998. In 2023, 2024 and 2025, the company paid out dividends totaling $1.1 billion, $1.2 billion and $1.3 billion, respectively. This consistency has persisted despite fluctuations in the company’s cash position, underscoring its dedication to creating long-term value for investors. Consistent dividend payments give a green light to income-seeking investors.
Risks Faced by WM
Heightened Debt Load: Stericycle buyout and ongoing investments in renewable energy have significantly increased its debt load. The company has issued billions in senior notes, affecting financial flexibility and increasing the potential impacts on shareholder returns if cash flow does not grow as expected.
If WM fails to achieve the anticipated growth in cash flow, it could face challenges in maintaining its operational efficiency and meeting these financial obligations. As of June 30, 2026, the company had current debt of $1.1 billion and long-term debt of $22.2 billion against a cash and equivalent balance of $557 million.
Weak Liquidity Profile: WM's high short-term debt against its cash reserves weakens its liquidity position. At the end of the second quarter of 2026, the company reported a current ratio of 0.91, a sequential dip from 0.93. A current ratio below 1 often suggests that a company may not be well-positioned to meet its short-term obligations, which is a waving red flag for investors.
WM’s Zacks Rank & Stocks to Consider
The company has a Zacks Rank #3 (Hold) at present.
View the Zacks #1 Rank List
Image: Bigstock
Here's Why Investors Must Hold WM Stock in Their Portfolios Now
Key Takeaways
WM (WM - Free Report) shares have moved up 2.4% in the past three months. Meanwhile, the industry and the Zacks S&P 500 Composite have returned 3.8% and 3.6%, respectively.
3-Month Share Price Performance
The Zacks Consensus Estimate for 2026 revenues is pinned at $26.4 billion, suggesting 4.6% year-over-year growth. For 2027, the consensus estimate is $27.8 billion, implying a 5.4% increase from the preceding year’s actual.
For EPS, the consensus mark for 2026 is pegged at $8.14, indicating 8.5% year-over-year growth. The Zacks Consensus Estimate for 2027 EPS is pegged at $9.06. The figure suggests 11.3% year-over-year growth.
Factors That Augur Well for WM’s Success
Tech-Driven Efficiencies Bolster Margins: WM strengthens its margin profile utilizing tech-backed efficiencies. The SmartTruck platform, a combination of AI and machine learning, generates more than $300 million in annual run-rate EBITDA via route optimization, service upgrades, and lower operating expenses.
These innovations kept operating expenses below 60% of the top line for the sixth consecutive quarter despite headwinds. The company is expanding its tech pipeline to incorporate AI tools, autonomous long-haul vehicles and remotely operated heavy equipment to lower operating costs, improve the top line, and act as the catalyst for margin expansion.
Stericycle Buyout Boosts Cash Position: WM’s recent acquisition of Stericycle complements its business platform in medical waste, a sector with robust growth dynamics. In 2025, the company recorded a $653-million increase in net cash, driven by the recent buyout. Stericycle was responsible for a $245-million rise in income from operations during 2025.
Dividends Attract Income-Seeking Investors: WM has paid out dividends to its shareholders since 1998. In 2023, 2024 and 2025, the company paid out dividends totaling $1.1 billion, $1.2 billion and $1.3 billion, respectively. This consistency has persisted despite fluctuations in the company’s cash position, underscoring its dedication to creating long-term value for investors. Consistent dividend payments give a green light to income-seeking investors.
Risks Faced by WM
Heightened Debt Load: Stericycle buyout and ongoing investments in renewable energy have significantly increased its debt load. The company has issued billions in senior notes, affecting financial flexibility and increasing the potential impacts on shareholder returns if cash flow does not grow as expected.
If WM fails to achieve the anticipated growth in cash flow, it could face challenges in maintaining its operational efficiency and meeting these financial obligations. As of June 30, 2026, the company had current debt of $1.1 billion and long-term debt of $22.2 billion against a cash and equivalent balance of $557 million.
Weak Liquidity Profile: WM's high short-term debt against its cash reserves weakens its liquidity position. At the end of the second quarter of 2026, the company reported a current ratio of 0.91, a sequential dip from 0.93. A current ratio below 1 often suggests that a company may not be well-positioned to meet its short-term obligations, which is a waving red flag for investors.
WM’s Zacks Rank & Stocks to Consider
The company has a Zacks Rank #3 (Hold) at present.
Some better-ranked stocks from the broader Zacks Business Services sector are Coursera (COUR - Free Report) and Gartner (IT - Free Report) , each currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Coursera has a long-term earnings growth expectation of 49.6%. COUR delivered a trailing four-quarter earnings surprise of 10.9%, on average.
Gartner has a long-term earnings growth expectation of 21%. IT delivered a trailing four-quarter earnings surprise of 13.5%, on average.