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WM Stock Jumps 13% in 6 Months: Here's What You Should Know
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Key Takeaways
WM's core price rose 5.8% y/y in Q3'26; better price-to-cost spreads and cost controls supported margins.
Healthcare EBITDA rose 33%, Recycling EBITDA grew 40% and Renewable Energy EBITDA gained 35%.
WM's free cash flow rose 42.3% to $3.01B, supporting $2.7B in shareholder returns.
WM (WM - Free Report) shares have gained 12.6% over the past six months, beating the industry’s 7.5% growth and the Zacks S&P 500 Composite's marginal return.
6-Month Share Price Performance
Image Source: Zacks Investment Research
Let us delve deeper into the factors behind the company’s solid price performance.
Prudent Pricing Support Margins: WM’s core price rose 5.8% year over year in the third quarter of 2026, and a 40-basis-point (bps) improvement in price-to-cost spreads contributed to margin expansion. Tech-driven efficiencies, enhanced routing and cost optimization also strengthened the company’s operational prowess. A 70-bps year-over-year decline in selling, general and administrative expenses highlights WM’s operational discipline.
Healthcare Solutions Acts as a Key Revenue Driver: Integration initiatives across the Healthcare Solutions segment delivered operational improvements, as evidenced by a 33% year-over-year increase in EBITDA in the third quarter of 2026. This segment’s core price reached 5.5%, achieving management’s year-end target ahead of schedule. Persistent pricing optimization, integration synergies and optimistic customer trends support profitability.
Sustainability Investments Support Growth: WM is registering meaningful returns from its investments in recycling automation and renewable natural gas (RNG) facilities. In the third quarter of 2026, Recycling Processing and Sales EBITDA increased 40% year over year, driven by automated processing capabilities and improved commodity prices.
Increased contribution from RNG projects resulted in Renewable Energy’s EBITDA rising more than 35% year over year. WM is positioned to capitalize on the 18 RNG facilities completed since 2022 and additional capacity scheduled to become operational, benefiting from higher production.
Cash Flow Supports Shareholder Returns: In the first nine months of 2026, the operating cash flow increased 12% year over year to $4.9 billion, while the free cash flow advanced 42.3% to $3.01 billion. WM returned more than $2.7 billion to shareholders during the period, including $1.6 billion in repurchases and $1.1 billion in dividends. Management expects full-year free cash flow near the high end of its $3.75-$3.85 billion guidance and $2 billion in share repurchases, reinforcing shareholder confidence.
View the Zacks #1 Rank List
Image: Bigstock
WM Stock Jumps 13% in 6 Months: Here's What You Should Know
Key Takeaways
WM (WM - Free Report) shares have gained 12.6% over the past six months, beating the industry’s 7.5% growth and the Zacks S&P 500 Composite's marginal return.
6-Month Share Price Performance
Let us delve deeper into the factors behind the company’s solid price performance.
Prudent Pricing Support Margins: WM’s core price rose 5.8% year over year in the third quarter of 2026, and a 40-basis-point (bps) improvement in price-to-cost spreads contributed to margin expansion. Tech-driven efficiencies, enhanced routing and cost optimization also strengthened the company’s operational prowess. A 70-bps year-over-year decline in selling, general and administrative expenses highlights WM’s operational discipline.
Healthcare Solutions Acts as a Key Revenue Driver: Integration initiatives across the Healthcare Solutions segment delivered operational improvements, as evidenced by a 33% year-over-year increase in EBITDA in the third quarter of 2026. This segment’s core price reached 5.5%, achieving management’s year-end target ahead of schedule. Persistent pricing optimization, integration synergies and optimistic customer trends support profitability.
Sustainability Investments Support Growth: WM is registering meaningful returns from its investments in recycling automation and renewable natural gas (RNG) facilities. In the third quarter of 2026, Recycling Processing and Sales EBITDA increased 40% year over year, driven by automated processing capabilities and improved commodity prices.
Increased contribution from RNG projects resulted in Renewable Energy’s EBITDA rising more than 35% year over year. WM is positioned to capitalize on the 18 RNG facilities completed since 2022 and additional capacity scheduled to become operational, benefiting from higher production.
Cash Flow Supports Shareholder Returns: In the first nine months of 2026, the operating cash flow increased 12% year over year to $4.9 billion, while the free cash flow advanced 42.3% to $3.01 billion. WM returned more than $2.7 billion to shareholders during the period, including $1.6 billion in repurchases and $1.1 billion in dividends. Management expects full-year free cash flow near the high end of its $3.75-$3.85 billion guidance and $2 billion in share repurchases, reinforcing shareholder confidence.
Zacks Rank & Stocks to Consider
WM currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Business Services sector are Zeta Global (ZETA - Free Report) and Evertec (EVTC - Free Report) , currently sporting a Zacks Rank #1 (Strong Buy) and a Zacks Rank #2 (Buy), respectively. You can see the complete list of today’s Zacks #1 Rank stocks here.
Zeta Global has a long-term earnings growth expectation of 37.5%. ZETA delivered a trailing four-quarter earnings surprise of 17.5%, on average.
Evertec has a long-term earnings growth expectation of 9.9%. EVTC delivered a trailing four-quarter earnings surprise of 5.5%, on average.