Free Trial

Waste Management Stock: Tariff Proof, But Overbought?

Irwindale, LA County, California - June 17, 2024: WM Waste Management trash collection truck. WM is a waste management services company operating in North America — Stock Editorial Photography

Key Points

  • Investors shrugged off a mixed earnings report and sent WM stock charging towards its all-time high set on April 3, 2025.
  • The company has a tariff-proof business model, but buying at these levels means investors have to believe that the company will still hit its full-year guidance.
  • Even then, the stock looks slightly extended. Long-term investors should wait for a pullback or a sharp, sustained move above its previous all-time high.
  • Interested in Waste Management? Here are five stocks we like better.

Waste Management Today

Waste Management, Inc. stock logo
WMWM 90-day performance
Waste Management
$234.98 +1.04 (+0.44%)
As of 05/5/2025 03:59 PM Eastern
This is a fair market value price provided by Polygon.io. Learn more.
52-Week Range
$196.59
$239.32
Dividend Yield
1.40%
P/E Ratio
34.56
Price Target
$243.29

Investors got a split decision when Waste Management Inc. NYSE: WM reported earnings after the market closed on April 28. Earnings per share (EPS) of $1.67 beat analysts’ forecasts by eight cents. However, revenue came in at $6.02 billion, which was 1.4% lower than the $6.14 billion that was expected. To add more context, even with the miss, the company’s revenue still came in 16.7% higher on a year-over-year (YOY) basis.

WM stock dipped about 1% after the report, but quickly made up that gain and more. That puts the stock within striking distance of its all-time high, which was set at the beginning of April.

Investors in companies like Waste Management and its leading competitor, Republic Services Inc. NYSE: RSG, frequently remark that "trash is cash." But WM's stock performance in 2025 raises the question of whether the stock is overbought at its current price.

A Stock Free of Tariff Trouble and With Solid Growth Drivers

When investors are looking for stocks that aren’t subject to tariffs, a company that collects trash and recyclables doesn’t get much more tariff-proof than a company that collects trash and recyclables. It’s an evergreen company among business services stocks and is the leading provider of comprehensive waste management environmental services.

In its earnings report, Waste Management highlighted a key sector of growth, WM Healthcare Solutions. This is the company’s medical waste and secure information destruction businesses. The company reported “significant progress” in integrating this unit into the business. WM Healthcare Solutions accounted for about 10% of the company’s revenue in the first quarter. The company also said it expanded this unit’s margin by about 20% in the quarter.

Waste Management also highlighted two new automated recycling projects (what they refer to as next-generation recycling plants) that launched in key markets in the first quarter. The company plans to open seven more next-generation recycling plants in 2025, in addition to eight new renewable natural gas facilities, which it plans to open this year.

These are part of the company’s commitment to sustainability, which it displays in solutions that enhance the circular economy in the companies in which it does business.

Overvalued Is in the Eye of the Beholder

When you add in Waste Management’s dividend, which increased for the 22nd consecutive year earlier this year, you can see why it’s a solid buy-and-hold investment. But is it a stock that should be attracting new capital at this time?

Waste Management Stock Forecast Today

12-Month Stock Price Forecast:
$243.29
3.54% Upside
Moderate Buy
Based on 21 Analyst Ratings
Current Price$234.98
High Forecast$271.00
Average Forecast$243.29
Low Forecast$219.00
Waste Management Stock Forecast Details

Some investors may view Waste Management’s 33.7x price-to-earnings (P/E) ratio with caution, but it aligns closely with the company’s three- and five-year historical averages. While this doesn’t suggest the stock is undervalued, it does indicate the valuation is consistent with its own performance trends.

The company’s P/E ratio becomes less important when you look at its free cash flow (FCF), which is also trending above its recent yearly averages. Waste Management generated $475 million in FCF in the quarter but reiterated its prior outlook for approximately $2.68 billion to $2.78 billion in free cash flow for the full year.

That said, even if the company comes in at the low end of its full-year revenue guidance, it would be a 15% YOY increase. However, WM stock is up about 13% year-to-date, which suggests that much of that growth may already be priced into the stock.

The Waste Management analyst forecasts on MarketBeat give the stock a Moderate Buy rating. However, the consensus price target of $239.83 is within 5% of the stock’s closing price on April 29. And while WM stock is within the Neutral range on the Relative Strength Index, it hit overbought levels when it hit its all-time high in April.

Should You Invest $1,000 in Waste Management Right Now?

Before you consider Waste Management, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Waste Management wasn't on the list.

While Waste Management currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here

10 "Recession Proof" Stocks That Will Thrive in Any Market Cover

Which stocks are likely to thrive in today's challenging market? Enter your email address and we'll send you MarketBeat's list of ten stocks that will drive in any economic environment.

Get This Free Report
Chris Markoch
About The Editor

Chris Markoch

Editor & Contributing Author

Retirement, Individual Investing

Like this article? Share it with a colleague.

Companies Mentioned in This Article

CompanyMarketRank™Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
Waste Management (WM)
4.3796 of 5 stars
$234.98+0.4%1.40%34.56Moderate Buy$243.29
Republic Services (RSG)
4.4086 of 5 stars
$250.74+0.1%0.93%38.63Moderate Buy$249.00
Compare These Stocks  Add These Stocks to My Watchlist 

Featured Articles and Offers

Recent Videos

Buy Early: 3 Tech Trends With Millionaire-Making Potential
SMCI Stumbles on Earnings: Why Some Investors Still Want In
5 Stocks to BUY NOW in May 2025

Stock Lists

All Stock Lists

Investing Tools

Calendars and Tools

Search Headlines