WM WM shares have jumped 3.4% over the past six months against the industry’s 5.4% decline.
WM’s revenues are anticipated to increase 5.1% and 5.6% year over year in 2026 and 2027, respectively. Earnings are estimated to rise 8.7% in 2026 and 12.5% in 2027.
Factors That Augur Well for WM’s Success
WM’s robust waste collection, recycling and disposal infrastructure makes it a reliable partner, leading to good, long-standing customer relationships and consistent revenues.
The company utilizes its extensive network of assets, including landfills, recycling facilities and waste-to-energy plants, to offer specialized services, such as advanced recycling solutions and renewable energy production, which competitors with fewer resources might struggle to match. This allows WM to remain sustainable and grow in the long run, while building competitive advantages that make it a leader in the waste management sector.
WM's focus on pricing and cost control is vital to maintaining healthy profit margins. By optimizing routes, improving service delivery and operational processes, the company ensures that price adjustments are aligned with the quality and reliability of services and the demand at any given time.
The elimination of unnecessary costs facilitates margin protection despite the fluctuating economic conditions. The integration of modern technology and process improvements lowers costs and boosts service reliability and customer satisfaction.
In 2021, 2022, 2023, 2024 and 2025, the company paid out $970 million, $1.1 billion, $1.1 billion, $1.2 billion and $1.3 billion in dividends, respectively. This consistency has persisted despite fluctuations in the company’s cash position, underscoring its dedication to creating long-term value for investors.
Risks Faced by WM
Despite consistent revenues and incremental growth through acquisitions and technology investments, WM’s core operations lack explosive growth seen in the tech and emerging market stocks. The company operates in a stable industry with consistent demand, leading to steady but modest stock price movements.
WM's significant short-term debt relative to its cash reserves weakens its liquidity position. At the end of the first quarter of 2026, the company reported a current ratio of 0.93, lower than the industry's average of 1.08. A current ratio below 1 often suggests that a company may not be well-positioned to meet its short-term obligations.
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 Amadeus IT Group, S.A. AMADY and Enpro Inc. NPO, each currently carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Amadeus IT Group has a long-term earnings growth expectation of 6.1%. AMADY delivered a trailing four-quarter earnings surprise of 3.4%, on average.
Enpro has a long-term earnings growth expectation of 15%. NPO delivered a trailing four-quarter earnings surprise of 2%, on average.
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Waste Management, Inc. (WM): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).