Waste Management (WM) has seen some fluctuation in its stock price over the past week, with a small dip that leaves investors curious about what might be driving this movement. Looking at recent returns, there is a gentle downward trend.
While Waste Management's share price has taken a slight step back recently, its year-to-date price return of over 7% hints at steady momentum. This is complemented by a solid 1-year total shareholder return of 3.28%. Long-term holders have seen the value compound, with a notable 110% total shareholder return over five years. Despite near-term volatility, the bigger performance story remains intact.
With a moderate drop in recent weeks but strong long-term performance, the big question now is whether Waste Management’s current valuation points to an opportunity for buyers or if the market has already accounted for the company’s future growth prospects.
Advertisement
Most Popular Narrative: 14.9% Undervalued
Compared to the last close price of $214.89, the most widely followed narrative puts Waste Management’s fair value at $252.45. This creates a notable gap that investors will want to understand. The estimate reflects forward-looking expectations for growth and profitability, setting the scene for some optimistic assumptions about margin expansion and sector leadership.
The company's strategic investments in sustainability, particularly in the areas of recycling and renewable energy, are showing strong, high-return growth, which could drive future revenue increases. The integration and optimization of WM Healthcare Solutions are on track to deliver significant synergies, anticipated to reach $250 million annually by 2027, positively impacting earnings.
Curious how Waste Management’s ambitious investments might supercharge margins? This narrative reveals bold expectations on profit expansion, future earnings power, and the surprising growth engine hidden within recycling and healthcare. The real secret? It’s all baked into a financial blueprint you probably wouldn’t associate with a traditional waste company.
However, shifts in economic conditions or unexpected changes in regulations could quickly change the outlook and challenge even the most optimistic forecasts for Waste Management.
While analysts see Waste Management as undervalued relative to consensus price targets, our SWS DCF model suggests a different story. According to this approach, Waste Management is actually trading above its estimated fair value. This raises a new question: Is the market factoring in future growth too optimistically?
If you see things differently or want to dig into the numbers yourself, you can quickly shape your own take in just a few minutes with Do it your way.
A great starting point for your Waste Management research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.
Looking for More Investment Ideas?
Don’t let opportunities slip by when the next big winner could be just a click away. Use these expert-curated shortlists to jumpstart your search for standout stocks today.
Tap into the unstoppable force of artificial intelligence by exploring these 24 AI penny stocks reshaping entire industries and unlocking new growth frontiers.
This article by Simply Wall St is general in nature. We provide commentary based on historical data
and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your
financial situation. We aim to bring you long-term focused analysis driven by fundamental data.
Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
Simply Wall St has no position in any stocks mentioned.
Valuation is complex, but we're here to simplify it.
Discover if Waste Management might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.
Through its subsidiaries, provides environmental solutions to residential, commercial, industrial, and municipal customers in the United States, Canada, Western Europe, and internationally.
