Here's Why Waste Management (WM) is a Strong Growth Stock (2024)
Zacks Equity Research
·2 min read
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.
While you may have an investing style you rely on, finding great stocks is made easier with the Zacks Style Scores. These are complementary indicators that rate stocks based on value, growth, and/or momentum characteristics.
Why This 1 Growth Stock Should Be On Your Watchlist
For growth investors, a company's financial strength, overall health, and future outlook take precedence, so they'll want to zero in on the Growth Style Score. This Score examines things like projected and historical earnings, sales, and cash flow to find stocks that will generate sustainable growth over time.
Waste Management (WM)
Headquartered in Houston, Texas, Waste Management Inc. is a leading provider of comprehensive waste management services in North America. The company provides collection, transfer, recycling and resource recovery, as well as disposal services to residential, commercial, industrial and municipal customers. It is also a leading developer, operator and owner of waste-to-energy and landfill gas-to-energy facilities in the United States.
WM is a Zacks Rank #3 (Hold) stock, with a Growth Style Score of A and VGM Score of A. Earnings are expected to grow 7.9% year-over-year for the current fiscal year, with sales growth of 4.8%.
Six analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.03 to $6.03 per share for 2023. WM boasts an average earnings surprise of 1.6%.
Waste Management is also cash rich. The company has generated cash flow growth of 9.1%, and is expected to report cash flow expansion of 7.6% in 2023.
WM should be on investors' short lists because of its impressive growth fundamentals, a good Zacks Rank, and strong Growth and VGM Style Scores.
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Waste Management, Inc., doing business as WM, is a waste management, comprehensive waste, and environmental services company operating in North America. Founded in 1968, the company is headquartered in the Bank of America Tower in Houston, Texas.
is expected to report cash flow growth of 9.3% this year; WM has generated cash flow growth of 7.6% over the past three to five years. WM should be on investors' short lists because of its impressive growth fundamentals, a good Zacks Rank, and strong Growth and VGM Style Scores.
WM boasts a Growth Style Score of B and VGM Score of B, and holds a Zacks Rank #3 (Hold) rating. Its bottom-line is projected to rise 11.5% year-over-year for 2024, while Wall Street anticipates its top line to improve by 6.6%.
The average price target is $211.11 with a high forecast of $256.00 and a low forecast of $175.00. The average price target represents a -0.96% change from the last price of $213.15.
Intrinsic Value. The intrinsic value of one WM stock under the Base Case scenario is 157 USD. Compared to the current market price of 208.78 USD, Waste Management Inc is Overvalued by 25%.
Is Waste Management stock a Buy, Sell or Hold? Waste Management stock has received a consensus rating of buy. The average rating score is and is based on 34 buy ratings, 21 hold ratings, and 1 sell ratings.
We've established that Waste Management maintains its high P/E on the strength of its forecast growth being higher than the wider market, as expected. At this stage investors feel the potential for a deterioration in earnings isn't great enough to justify a lower P/E ratio.
Waste Management annual gross profit for 2023 was $7.82B, a 5.62% increase from 2022. Waste Management annual gross profit for 2022 was $7.404B, a 8.56% increase from 2021. Waste Management annual gross profit for 2021 was $6.82B, a 16.05% increase from 2020.
Waste Management, Inc.'s ( WM ) ex-dividend date is March 14, 2024 , which means that buyers purchasing shares on or after that date will not be eligible to receive the next dividend payment. Waste Management, Inc. ( WM ) pays dividends on a quarterly basis.
Municipal solid waste generation is predicted to grow from 2.3 billion tonnes in 2023 to 3.8 billion tonnes by 2050. In 2020, the global direct cost of waste management was an estimated USD 252 billion.
Bill Gates' stake in Waste Management is surprisingly large for an investor who is far better known for his accomplishments in the technology field. 15.4 percent of the Gates Foundation's holdings are invested in Waste Management, making it the fourth largest holding.
Waste Management, the North American titan of trash collection and disposal, isn't the flashiest company on the block. But beneath the unassuming surface lies a hidden gem: a recession-proof business model generating consistently growing free cash flow, fueling dividend growth for nearly two decades.
By 2034, the global market for these products is expected to reach US$ 29,842.2 million. According to Fact MR, a provider of market research and competitive intelligence, the global Waste Management Equipment market is rapidly growing and is expected to continue its growth trajectory in the coming years.
The future of waste management lies in continuous innovation and advancements. With the increasing adoption of sustainable practices and emerging technologies, waste management is evolving towards a more circular and resource-efficient model.
Bill Gates' stake in Waste Management is surprisingly large for an investor who is far better known for his accomplishments in the technology field. 15.4 percent of the Gates Foundation's holdings are invested in Waste Management, making it the fourth largest holding.
Introduction: My name is Edwin Metz, I am a fair, energetic, helpful, brave, outstanding, nice, helpful person who loves writing and wants to share my knowledge and understanding with you.
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