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Barchart
Barchart
Sohini Mondal

Is Waste Management Stock Underperforming the S&P 500?

With a market cap of $94.3 billion, Waste Management, Inc. (WM) is a leading environmental solutions provider serving residential, commercial, industrial, and municipal customers across the United States, Canada, Western Europe, and select international markets. It also delivers specialized services such as regulated and hazardous waste management, secure information destruction, and sustainability-focused recycling and recovery solutions.

Companies valued at $10 billion or more are generally considered “large-cap” stocks and Waste Management fits this criterion perfectly. The company offers comprehensive waste collection, recycling, landfill, and renewable energy services, including landfill gas-to-energy facilities that generate renewable electricity and natural gas.

 

Shares of the Houston, Texas-based company have fallen 2.9% from its 52-week high of $242.58. Over the past three months, shares of the company have gained 8.6%, outpacing the broader S&P 500 Index’s ($SPX) marginal rise during the same timeframe.

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WM stock has risen 7.4% on a YTD basis, outperforming SPX's marginal gain. However, in the longer term, the trash and recycling company's shares have soared 2.8% over the past 52 weeks, lagging behind the 17% return of the SPX over the same time frame.

Yet, the stock has been trading above its 50-day moving average since late November last year.

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Shares of WM fell 3.7% following its Q4 2025 results on Jan. 28 after the company reported adjusted EPS of $1.93 and revenue of $6.31 billion, both came in below expectations. The earnings and revenue miss overshadowed solid year-over-year growth, including net income rising to $742 million and adjusted EBITDA increasing to $1.97 billion, with margins improving to 31.3%. 

In comparison, its rival, Republic Services, Inc. (RSG), has lagged behind WM stock. RSG stock has gained nearly 6% on a YTD basis and decreased 3% over the past year.

Despite WM stock’s underperformance relative to the SPX over the past year, analysts are moderately optimistic with a consensus rating of "Moderate Buy" from 27 analysts. The mean price target of $254.72 suggests a 7.9% upside potential from current levels.

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