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Why You Should Hold Waste Management (WM) in Your Portfolio
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Waste Management, Inc. (WM - Free Report) is currently benefiting from its core operating initiatives, steady shareholder-friendly measures and solid liquidity.
WM’s 2022 and 2023 revenues are anticipated to grow 10.1% and 5.9% from the respective year-ago reported figures. WM’s 2022 and 2023 earnings are anticipated to grow 17.8% and 8.9% from the respective year-ago reported figures.
Shares of WM have gained 14.5% in the past six-month period compared with 12.6% surge of the industry it belongs to.
Image Source: Zacks Investment Research
Factors That Augur Well
Waste Management's current ratio at the end of third-quarter 2022 was pegged at 0.85, higher than the prior-year quarter’s current ratio of 0.78. Increasing current ratio bodes well as it indicates a company’s efficiency in meeting its short-term debt obligations.
WM continues to execute its core operating initiatives targeting focused differentiation and continuous improvement, and implementing price and cost discipline to achieve better margins. While differentiation through capitalization of extensive assets ensures long-term profitable growth and competitive advantages, cost control helps to enhance service quality.
Waste Management has a dominant market capitalization and a steady dividend as well as share repurchase policy. In 2021, 2020 and 2019, the company had repurchased shares worth $1.35 billion, $402 million and $248 million, respectively. It paid $970 million, $927 million and $876 million in dividends during 2021, 2020 and 2019, respectively. Waste Management plans to return significant cash to shareholders through healthy dividends and share repurchases in the future as well.
A Key Risk
Waste Management has more long-term debt outstanding than cash. Cash and cash equivalents at the end of third-quarter 2022 were $137 million. The long-term debt level was $13.8 billion.
Some better-ranked stocks in the broader Zacks Business Services sector are Booz Allen Hamilton Holding Corporation (BAH - Free Report) and CRA International, Inc. (CRAI - Free Report) .
Booz Allen carries a Zacks Rank #2 (Buy) at present. BAH has a long-term earnings growth expectation of 8.9%.
Booz Allen delivered a trailing four-quarter earnings surprise of 8.8%, on average.
CRA International carries a Zacks Rank of 2 at present. CRAI has a long-term earnings growth expectation of 14.3%.
CRA International delivered a trailing four-quarter earnings surprise of 25.7%, on average.
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Why You Should Hold Waste Management (WM) in Your Portfolio
Waste Management, Inc. (WM - Free Report) is currently benefiting from its core operating initiatives, steady shareholder-friendly measures and solid liquidity.
WM’s 2022 and 2023 revenues are anticipated to grow 10.1% and 5.9% from the respective year-ago reported figures. WM’s 2022 and 2023 earnings are anticipated to grow 17.8% and 8.9% from the respective year-ago reported figures.
Shares of WM have gained 14.5% in the past six-month period compared with 12.6% surge of the industry it belongs to.
Image Source: Zacks Investment Research
Factors That Augur Well
Waste Management's current ratio at the end of third-quarter 2022 was pegged at 0.85, higher than the prior-year quarter’s current ratio of 0.78. Increasing current ratio bodes well as it indicates a company’s efficiency in meeting its short-term debt obligations.
WM continues to execute its core operating initiatives targeting focused differentiation and continuous improvement, and implementing price and cost discipline to achieve better margins. While differentiation through capitalization of extensive assets ensures long-term profitable growth and competitive advantages, cost control helps to enhance service quality.
Waste Management has a dominant market capitalization and a steady dividend as well as share repurchase policy. In 2021, 2020 and 2019, the company had repurchased shares worth $1.35 billion, $402 million and $248 million, respectively. It paid $970 million, $927 million and $876 million in dividends during 2021, 2020 and 2019, respectively. Waste Management plans to return significant cash to shareholders through healthy dividends and share repurchases in the future as well.
A Key Risk
Waste Management has more long-term debt outstanding than cash. Cash and cash equivalents at the end of third-quarter 2022 were $137 million. The long-term debt level was $13.8 billion.
Zacks Rank and Stocks to Consider
Waste Management currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some better-ranked stocks in the broader Zacks Business Services sector are Booz Allen Hamilton Holding Corporation (BAH - Free Report) and CRA International, Inc. (CRAI - Free Report) .
Booz Allen carries a Zacks Rank #2 (Buy) at present. BAH has a long-term earnings growth expectation of 8.9%.
Booz Allen delivered a trailing four-quarter earnings surprise of 8.8%, on average.
CRA International carries a Zacks Rank of 2 at present. CRAI has a long-term earnings growth expectation of 14.3%.
CRA International delivered a trailing four-quarter earnings surprise of 25.7%, on average.