Waste Management: Mining Wealth from Waste Amid Market Uncertainty

Waste Management (WM) recently closed at $219.71, sliding 1.08% compared to the previous session—a steeper decline than the broader S&P 500’s 0.74% pullback. The Dow dropped 0.63%, while the Nasdaq fell 0.76%. Despite today’s setback, WM has maintained solid momentum, climbing 3.53% over the past month, beating both the Business Services sector’s 2.83% and the S&P 500’s modest 0.79% gains.

Strong Earnings Growth on the Horizon

The company’s upcoming earnings release on January 28, 2026 represents a critical inflection point for investors. Wall Street is expecting EPS of $1.95, translating to robust 14.71% year-over-year growth. Revenue projections tell an equally compelling story at $6.38 billion, representing an 8.29% increase from the prior-year quarter.

For the full fiscal year, consensus estimates point to earnings of $7.51 per share and revenue of $25.27 billion—reflecting impressive gains of 3.87% and 14.55% respectively. These figures underscore how companies extracting wealth from waste streams continue capitalizing on secular growth trends in environmental services.

Valuation and Analyst Sentiment

From a valuation perspective, WM trades at a Forward P/E of 29.59, sitting at a modest discount to the industry average of 30.41. The PEG ratio currently stands at 2.75, slightly elevated compared to the Waste Removal Services industry average of 2.39. This premium reflects market expectations for sustained earnings expansion.

Recent analyst activity warrants attention. Over the past month, the Zacks Consensus EPS estimate has ticked down 0.19%—a minor adjustment that signals cautious sentiment. WM currently holds a Zacks Rank of #3 (Hold), reflecting a balanced outlook. The Zacks Rank system, which incorporates estimate revisions and has delivered an average annual return of +25% for #1-rated stocks since 1988, suggests WM is neither oversold nor significantly undervalued at current levels.

Industry Position and Market Opportunity

The Waste Removal Services industry maintains a Zacks Industry Rank of 96, placing it in the top 39% of 250+ ranked industries. This positioning reflects the sector’s structural appeal—the business of transforming waste into economic value remains resilient across economic cycles. Historical data shows top-50% rated industries outperform the bottom half by a 2-to-1 margin, providing favorable tailwinds for sector participants like WM.

The Investment Case

Investors monitoring WM should balance several factors: strong projected earnings growth, reasonable valuation relative to peers, and the industry’s favorable structural dynamics. The company’s ability to generate wealth from waste—a business that remains countercyclical and essential—continues positioning it as a defensive yet growth-oriented holding within the broader market context.