Waste Management (WM) Shares Gain 37% in a Year: Here's How
Waste Management, Inc. WM has had an impressive run over the past year. The stock has gained 37.4%, outperforming the 31.6% and 33% growth of the industry it belongs to and the Zacks S&P 500 composite, respectively.
What’s Diving the Stock
Being a leading provider of comprehensive waste management environmental services, WM is benefiting from ongoing trends like increasing environmental concerns, rapid industrialization, a rise in population and active government measures to reduce illegal dumping. The company’s top line improved 5.7% year over year in the fourth quarter of 2023.
Waste Management, Inc. Revenue (TTM)
Waste Management, Inc. revenue-ttm | Waste Management, Inc. Quote
WM continues to execute core operating initiatives targeting focused differentiation and continuous improvement and instilling 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 and process improvement help enhance service quality.
Waste Management has a dominant market capitalization and a steady dividend, as well as a share repurchase policy. In 2023, 2022 and 2021, the company repurchased shares worth $1.3 billion, $1.5 billion and $1.35 billion, respectively. It paid $1.14 billion, $1.1 billion and $970 million in dividends in 2023, 2022 and 2021, respectively. Waste Management plans to return significant cash to shareholders through healthy dividends and share repurchases in the future as well.
Zacks Rank and Stocks to Consider
Waste Management currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Business Services sector are Booz Allen Hamilton BAH and Jamf JAMF.
Booz Allen Hamilton sports a Zacks Rank of 1 (Strong Buy) at present. It has a long-term earnings growth expectation of 12.6%. You can see the complete list of today’s Zacks #1 Rank stocks here.
BAH delivered a trailing four-quarter earnings surprise of 12.7%, on average.
Jamf has a Zacks Rank of 2 (Buy) at present. It has a long-term earnings growth expectation of 22.5%.
JAMF delivered a trailing four-quarter earnings surprise of 49.4%, on average.
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Waste Management, Inc. (WM) : Free Stock Analysis Report
Booz Allen Hamilton Holding Corporation (BAH) : Free Stock Analysis Report
Jamf Holding Corp. (JAMF) : Free Stock Analysis Report
