Should You Hold WM Stock? What Recent Performance and Fundamentals Tell Us

Waste Management stock has appreciated 3.7% over the last month, outperforming its industry peer group which saw only 1.2% gains. The company carries a Growth Score of B, a metric designed to distill complex financial performance into a single snapshot of how sustainable and quality-driven its expansion trajectory appears to be.

The Core Thesis: Infrastructure + Pricing Power

The foundation of Waste Management’s competitive moat rests on its sprawling network of collection routes, recycling operations, and waste-to-energy conversion facilities. This diversified waste management course of action—spanning landfills, processing centers, and energy generation—positions the firm as more than just a trash collector; it’s become an infrastructure-heavy player with renewable energy credentials.

What matters most for shareholders: WM’s ability to pass price increases through to customers without sacrificing volume. Given the essential nature of waste services, the company maintains pricing discipline while delivering reliable operations, a combination that sustains customer loyalty and margins.

Healthcare Pivot and Demographic Tailwinds

Via its Stericycle acquisition, Waste Management has expanded into specialized waste streams. With birth rates declining and an aging population expanding year-over-year, demand for healthcare waste disposal services should climb meaningfully. This segment diversification adds another revenue vector beyond traditional municipal waste.

On the dividend front, consistency has been the hallmark. The firm distributed $970 million in 2021, climbing to $1.1 billion in 2022, $1.14 billion in 2023, and $1.21 billion in 2024. For income-focused investors seeking predictable long-term cash returns, this track record speaks for itself—the company has maintained dividend payments since 1998.

The Liquidity Concern

Not everything is favorable. WM’s current ratio stands at 0.84, trailing the industry average of 0.98 from the most recent quarter. A current ratio below 1.0 frequently suggests tight near-term liquidity, potentially constraining the company’s ability to fund obligations coming due. This deserves monitoring, particularly if operational cash flows weaken.

The Rating and Peer Comparison

Waste Management currently holds a Zacks Rank #3 (Hold), suggesting a neutral stance from the research community. For those seeking higher-conviction picks, competitors like Genpact (Rank #2, Buy) and Palantir Technologies (Rank #2) command stronger recommendations. Genpact projects 9.6% long-term earnings growth with a 5.5% average earnings surprise; Palantir forecasts 50% growth with a 16.3% average surprise and three of four recent beats.

The takeaway: WM appears reasonably valued but lacks the growth excitement or research enthusiasm of its higher-ranked alternatives. Hold positions if you own it; new money might explore the stronger-rated options first.