Hold Waste Management stock for long-term growth potential and consistent revenue, despite liquidity concerns.

From Nasdaq: 2024-12-27 15:00:00

Waste Management, Inc. (WM) has a Growth Score of B, with expected long-term EPS growth rates of 12.4%, 18.3%, and 9.5% for 2024 and 2025. The company’s revenue growth is consistent, supported by a recession-resistant business model in waste management, sustainability initiatives, and innovation.

WM focuses on pricing, cost control, and operational efficiency to maintain healthy profit margins. The recent acquisition of Stericycle is expected to enhance earnings and cash flows with synergies. However, WM’s significant short-term debt raises liquidity concerns, reflected in a current ratio of 0.89 at the end of Q3 2024.

WM has a history of consistent dividend payments since 1998, totaling $970 million, $1.1 billion, and $1.14 billion in 2021, 2022, and 2023, respectively. The company currently holds a Zacks Rank #3 (Hold). Better-ranked stocks in the Business Services sector include Climb Global Solutions (CLMB) and Parsons (PSN), with strong growth expectations and positive earnings surprises.

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