Waste Management reports mixed earnings, questions raised about stock being overbought

From Nasdaq: 2025-05-02 07:00:00

Waste Management Inc. (NYSE: WM) reported earnings with EPS of $1.67, beating forecasts by eight cents, but revenue was 1.4% lower than expected at $6.02 billion. Despite the miss, revenue was up 16.7% YOY. WM stock dropped 1% post-report but quickly rebounded, nearing its all-time high set in April.

Waste Management’s revenue growth in 2025 raised questions about its stock being overbought at the current price. The company highlighted growth in WM Healthcare Solutions, accounting for 10% of Q1 revenue. Waste Management plans to open new recycling plants and renewable natural gas facilities to enhance sustainability and the circular economy.

Investors may find Waste Management’s 33.7x P/E ratio cautionary, despite aligning with historical averages. The company’s free cash flow is trending above yearly averages, with a projected $2.68 billion to $2.78 billion for the full year. Analyst forecasts give WM stock a Moderate Buy rating, with a consensus price target close to its April 29 closing price.



Read more at Nasdaq:: Waste Management Stock: Tariff Proof, But Overbought?