Waste Management, Inc. (WM): A Bull Case Theory

We came across a bullish thesis on Waste Management, Inc. on Global Equity Briefing’s Substack by Ray Myers. In this article, we will summarize the bulls’ thesis on WM. Waste Management, Inc.'s share was trading at $228.58 as of June 25^th. WM’s trailing and forward P/E were 34.42 and 29.76 respectively according to Yahoo Finance.

Waste Management holds a dominant and near-monopolistic position in the North American waste services industry, operating the largest and most integrated network of landfills, transfer stations, and recycling facilities. Serving over 20 million customers, it plays an essential role in maintaining the cleanliness and functionality of U.S. cities and neighborhoods. The company’s vast scale and ownership of critical disposal infrastructure provide significant pricing power and operational stability, allowing it to generate approximately $23 billion in annual revenue with resilient, recession-resistant cash flows.

Its entrenched moat is further reinforced by regulatory hurdles and the capital-intensive nature of the industry—barriers that make market entry exceptionally difficult for new players. Building new landfills involves immense cost and faces community opposition, while Waste Management already possesses the necessary assets: the land, the trucks, and long-term contracts. This strategic positioning allows the company to maintain its leadership and profitability with limited competition. As U.S. population growth continues and urban centers expand, demand for reliable, large-scale waste removal is only expected to increase.

Cultural expectations around cleanliness and sanitation further ensure the enduring necessity of Waste Management’s services. The company is effectively tied to a structural tailwind: as long as Americans continue producing waste—and there is no indication they will slow down—Waste Management is poised to benefit. With a highly defensive business model, strong free cash flow generation, and industry-leading scale, Waste Management offers a compelling long-term investment opportunity grounded in necessity, regulatory protection, and secular demand growth.

Previously we covered a bullish thesis on Waste Management, Inc. (WM) by Francesco Ferrari in April 2025, which highlighted the company’s low volatility, strong financials, and consistent long-term returns. The company's stock price has depreciated approximately by 1% since our coverage. This is because the thesis hasn’t fully played out. Francesco shares a similar view but emphasizes WM’s structural moat and regulatory advantages.

WM isn't on our list of the 30 Most Popular Stocks Among Hedge Funds. While we acknowledge the risk and potential of WM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

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Disclosure: None. This article was originally published at Insider Monkey.