Very few companies have been able to do what Waste Management did this past year. It posted strong profit and sales growth every quarter, defying the 2022 bear market. On Monday, the Relative Strength (RS) Rating for Waste Management stock climbed into a new percentile, with an increase from 78 to 82.
The revised rating shows, first, that Waste Management stock outperformed 82% of all stocks over the past 52 weeks. Additionally, it marks a milestone. Market research shows that the best stocks tend to have an RS Rating north of 80 in the early stages of their moves.
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Waste Management Stock May Rise On Recycling Deal
On Nov. 15, Waste Management and chemicals giant Dow co-announced they're rolling out what they say is the first major residential plastic film recycling program. The news release says currently only 1.9% of households have access to curbside plastic film recycling.
"By providing residential customers with a simple, curbside option for recycling plastic films, we will not only help our customers more easily manage their used plastic film products, but also meet the rising demand for recycled content products," said Jim Fish, Waste Management president and CEO.
Waste Management is trying to complete a flat base with a 176.08 buy point. See if the stock can break out in volume at least 40% above average. The Houston-based company dropped to 138.89 on June 17 amid the 2022 bear market. But Waste Management stock rebounded 20% to close Monday at 166.80, virtually unchanged for the day.
A Steady Eddie Sales, Profits Grower
Earnings jumped 24% last quarter to $1.56 per share. The prior three stanzas it reported 12%, 22% and then 13% EPS growth. Revenue in its most recent quarter rose 9% to $5.08 billion. That followed sales gains of 15%, 13% and 12%.
Waste Management stock earns the No. 11 rank among its peers in the Pollution-Control industry group. Hudson Technologies and Clean Harbors are among the group's highest-rated stocks.
When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength.
This proprietary Relative Strength Rating tracks technical performance by using a 1 (worst) to 99 (best) score that indicates how a stock's price action over the trailing 52 weeks matches up against other publicly traded companies.
