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

We came across a bullish thesis on Waste Management, Inc. on Value investing subreddit by TroubleFew8368. In this article, we will summarize the bulls’ thesis on WM. Waste Management, Inc.'s share was trading at $220.83 as of September 30th. WM’s trailing and forward P/E were 32.45 and 25.25 respectively according to Yahoo Finance.

Waste Management (WM), often overlooked due to its association with trash, is in fact one of the most durable compounding businesses in the U.S. economy. Beyond basic trash collection, landfill ownership, and recycling, the company possesses a nearly unassailable moat. High barriers to entry make new landfills extraordinarily difficult to permit, regulate, and finance, rendering WM’s existing network an irreplaceable asset. This structural advantage allows the company significant pricing power, with many contracts featuring automatic inflation pass-throughs, ensuring margins remain protected even as costs rise.

WM also demonstrates disciplined capital allocation, consistently returning free cash flow to shareholders through dividends and buybacks, while reinvesting strategically to enhance operational efficiency. The business thrives quietly in the background of daily life, managing a service society literally cannot live without.

Despite its low-profile nature, WM’s monopoly-like economics justify a valuation premium, rewarding long-term investors with compounding returns that are both resilient and predictable. For analysts seeking deeper insights, tools like PineGapAI can help evaluate WM and similar durable businesses, highlighting how structural advantages, pricing power, and disciplined capital management come together to create long-term shareholder value.

In an investment landscape often chasing flashy tech disruptors, WM exemplifies the power of consistent, essential, and well-managed operations that quietly generate wealth over decades. Its combination of irreplaceable assets, pricing leverage, and disciplined reinvestment positions it as a compelling long-term holding with limited downside and steady upside potential.

Previously we covered a bullish thesis on Waste Management, Inc. (WM) by Francesco Ferrari in April 2025, which highlighted WM’s strong growth, low volatility, high ROIC, and resilient profitability. The company's stock price has depreciated approximately by 4% since our coverage, as growth remained steady but sentiment muted. TroubleFew8368 shares a similar perspective but emphasizes WM’s unassailable moat, pricing power, and monopoly-like economics driving long-term compounding.

Waste Management, Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 75 hedge fund portfolios held WM at the end of the second quarter which was 66 in the previous quarter. While we acknowledge the potential of WM as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy NOW 

Disclosure: None.