Shares of Waste Management WM have gained 3.7% over the past month, exceeding 1.2% growth of the industry.
The company has a Growth Score of B. This style score condenses key financial metrics to reflect a fair sense of the quality and sustainability of its growth.
Factors That Bode Well for WM
Waste Management, with its robust waste collection, recycling and disposal infrastructure, ensures sustainable long-term growth while building competitive advantages. The company has become a leader in its sector by offering advanced recycling solutions and renewable energy production through its extensive network of assets, including landfills, recycling facilities and waste-to-energy plants.
WM’s pricing and cost control strategy ensures that price adjustments are aligned with the quality and reliability of its services, resulting in customer satisfaction.
Waste Management, Inc. Revenue (TTM)
Waste Management, Inc. revenue-ttm | Waste Management, Inc. Quote
The company is focusing on optimizing its healthcare solutions business through the Stericycle acquisition. Given a decline in birth rates and an increase in the aging population year over year, WM expects higher demand for this business in the coming years.
The company has been a consistent dividend payer since 1998. In 2021, 2022, 2023 and 2024, it paid dividends of $970 million, $1.1 billion, $1.14 billion and $1.21 billion, respectively. This attracts investors who seek long-term, steady returns.
Key Risk Factor
WM had a current ratio of 0.84, lower than the industry's average of 0.98 in the last quarter. A current ratio below 1 often suggests that a company may not be well-positioned to meet its short-term obligations.
Zacks Rank & Stocks to Consider
Waste Management currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here
A couple of better-ranked stocks in the broader Zacks Business Services sector are Genpact G and Palantir Technologies PLTR.
Genpact carries a Zacks Rank #2 (Buy) at present. It has a long-term earnings growth expectation of 9.6%.
G delivered a trailing four-quarter earnings surprise of 5.5% on average.
Palantir Technologies carries a Zacks Rank of 2 at present. PLTR has a long-term earnings growth expectation of 50%.
Palantir Technologies beat earnings estimates in three of the last four quarters and matched estimates once, delivering an earnings surprise of 16.3% on average.
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Waste Management, Inc. (WM): Free Stock Analysis Report Genpact Limited (G): Free Stock Analysis Report Palantir Technologies Inc. (PLTR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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