Waste Management Stock: Strong Performance and Future Expectations
With a market cap of $91 billion, Waste Management, Inc. (WM) stands as a prominent player in the waste management and environmental services sector. Based in Houston, Texas, the company focuses on waste collection, recycling, and disposal for North American residential, commercial, and industrial clients.
Impressive Returns Outpacing Market Trends
Shares of Waste Management have returned 20.8%, which is slightly better than the S&P 500 Index’s ($SPX) 20.5% rally. In 2025 alone, the stock has increased by 12.7%, significantly outperforming the SPX’s modest 2.9% rise year-to-date (YTD).
Comparative Performance Against Industry Benchmarks
Looking at a narrower scope, WM stock has outperformed the VanEck Environmental Services ETF’s (EVX) 17.4% return in the past 52 weeks, as well as its 4.3% YTD gains.
Quarterly Earnings Report Highlights
Following the release of its Q4 earnings on January 29, Waste Management’s shares gained 6.2%. The company reported a revenue of $5.89 billion, up 13% from last year, which exceeded analyst expectations. However, adjusted earnings per share (EPS) of $1.70 fell short by 5.7% compared to consensus estimates.
EBITDA was reported at $1.71 billion, matching projections, while the operating margin remained stable at 15.6%. Looking forward, the company provided 2025 revenue guidance at $26.68 billion, which is consistent with forecasts, and projected an EBITDA of $7.55 billion, slightly above expectations.
Future Earnings Expectations
For the current fiscal year ending in December, analysts anticipate Waste Management’s EPS to increase by 6.5% year over year to $7.70. The company has recently shown mixed results regarding earnings surprises, having met or exceeded analysts’ bottom-line expectations in three of the last four quarters, while falling short once.
Analysts’ Ratings and Price Targets
WM stock carries a consensus “Moderate Buy” rating. Among 21 analysts covering the stock, 11 recommend a “Strong Buy,” while one suggests a “Moderate Buy” and nine recommend a “Hold.”
This outlook is slightly more optimistic than it was three months ago, when only 10 analysts advised a “Strong Buy.”
On February 3, Scotiabank raised WM’s price target to $255 from $250, maintaining an “Outperform” rating. This action was informed by the company meeting Q4 expectations and issuing guidance in line with forecasts.
The mean price target of $241.47 suggests an upside potential of around 6.2%. Additionally, the highest target of $262 indicates that the stock could potentially increase by as much as 15.2%.
On the date of publication, Rashmi Kumari did not hold any positions in any of the securities mentioned in this article. All information and data in this article are provided solely for informational purposes. For more details, please review the Barchart Disclosure Policy here.
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The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
