Why You Should Hold Waste Management Stock in Your Portfolio Now

Waste Management, Inc. WM has an impressive Growth Score of B. This style score condenses all the essential metrics from the company’s financial statements to get a true sense of the quality and sustainability of its growth.WM has an expected long-term (three to five years) EPS growth rate of 12.4%. The company’s earnings for 2024 and 2025 are expected to grow at 18.3% and 9.5%, respectively.WM thrives on Resilience, Growth and InnovationOver the years, WM has shown consistent revenue growth. The company's business model is recession-resistant because waste management is an essential service, regardless of economic conditions. WM’s robust waste collection, recycling, and disposal infrastructure creates a steady revenue stream, making it a dependable investment option during market fluctuations.Additionally, WM has embraced sustainability initiatives and innovation, such as converting landfill gas into renewable energy, which solidifies its growth prospects and positions it as a leader in the green economy. These efforts align with global shifts toward environmentally responsible practices, attracting ESG-focused investors. Its steady financial performance appeals to risk-averse investors looking for long-term stable returns. WM's revenues and operating income have both grown at a compound annual growth rate of 5.7% from 2019 to 2023.Waste Management, Inc. Revenue (Quarterly) Waste Management, Inc. revenue-quarterly | Waste Management, Inc. QuoteWM's focus on pricing and cost control is key to maintaining healthy profit margins. By carefully managing expenses, optimizing routes and improving operational processes, the company reduces unnecessary costs while providing high-quality services. This approach also ensures that price adjustments are justified and aligned with market demand, protecting margins even in fluctuating economic conditions. WM emphasizes enhancements in service delivery and operational efficiency. By integrating modern technology and process improvements, the company reduces costs and boosts service reliability and customer satisfaction.Waste Management recently acquired Stericycle. The company anticipates that the acquisition will be accretive to its earnings and cash flows within one year of closing, with more than $125 million in annual run-rate synergies. Stericycle holds a leading position in the growing medical waste industry. The acquisition adds complementary business platforms to enhance WM’s comprehensive waste and environmental solutions.Waste Management has demonstrated a remarkable commitment to rewarding its shareholders, maintaining a consistent dividend payment record since 1998. This consistency has continued despite fluctuations in the company’s cash position, underscoring its dedication to creating long-term value for investors. The company has paid $970 million, $1.1 billion, and $1.14 billion in dividends during 2021, 2022 and 2023, respectively.A Risk for WMWM's significant short-term debt relative to its cash reserves weakens its liquidity position. At the end of the third quarter of 2024, the company reported a current ratio of 0.89, aligning with the industry's average of 0.93. A current ratio below 1 oftensuggests that a company may not be well-positioned to meet its short-term obligations without difficulty.Zacks Rank and Stocks to ConsiderWM currently carries a Zacks Rank #3 (Hold).Some better-ranked stocks in the broader Zacks Business Services sector are Climb Global Solutions CLMB and Parsons PSN.Climb Global Solutions flaunts a Zacks Rank of 1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.CLMB has a long-term earnings growth expectation of 16%. It delivered a trailing four-quarter earnings surprise of 51.1%, on average.Parsons sports a Zacks Rank of 1 at present. It has a long-term earnings growth expectation of 18.6%. PSN delivered a trailing four-quarter earnings surprise of 17.5%, on average.Zacks Naming Top 10 Stocks for 2025Want to be tipped off early to our 10 top picks for the entirety of 2025?History suggests their performance could be sensational.From 2012 (when our Director of Research Sheraz Mian assumed responsibility for the portfolio) through November, 2024, the Zacks Top 10 Stocks gained +2,112.6%, more than QUADRUPLING the S&P 500’s +475.6%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2025. Don’t miss your chance to get in on these stocks when they’re released on January 2.Be First to New Top 10 Stocks >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Waste Management, Inc. (WM): Free Stock Analysis Report Parsons Corporation (PSN): Free Stock Analysis Report Climb Global Solutions, Inc. (CLMB): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks