Waste Management’s stock rising ahead of Q3 earnings results

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Waste Management ($NYSE:WM) is an American waste management, comprehensive waste, and environmental services company. They are the largest residential recycler in North America. They are also a leading provider of integrated waste management services in the United States, Canada, and Puerto Rico. Waste Management’s stock rose 1.2% in Tuesday’s trading, a day before the company is set to release its Q3 earnings results. This comes as Jefferies has initiated coverage of the stock with a Buy rating and $191 price target. The firm believes that waste companies will see higher than historical average pricing going forward, even as inflation moderates.

The new “normal” for industry pricing should exceed the pre-COVID peak of 3% given the more rational and consolidated nature of the industry, Jefferies said. Waste Management has been working hard to increase its shareholder value. In August, the company announced a new $2 billion share repurchase program. Waste Management is well-positioned to benefit from the secular trends of urbanization and environmental regulation. It is also benefiting from the ongoing consolidation in the waste industry. the stock is a good long-term investment.

Earnings

Waste Management, Inc. is an American waste management, comprehensive waste, and environmental services company in North America. They are headquartered in Houston, Texas. The company’s stock is rising ahead of their Q3 earnings results. In their earning report of FY2022 Q2 as of June 30, WASTE MANAGEMENT earned 19.0B USD in total revenue, earned 2.1B USD in net income.

Compared to the previous year, there was a 6.1% increase in total revenue and a 16.7% increase in net income. WASTE MANAGEMENT’s total revenue reached from 15.2B USD to 19.0B USD in the last 3 years.

Price History

Right now, media exposure is mostly negative. However, on Tuesday, WASTE MANAGEMENT stock opened at $163.5 and closed at $165.0, up by 1.5% from the prior closing price of $162.7. The company is expected to report strong results, driven by increased revenue from its core collection and disposal businesses. Waste Management has been able to offset higher costs with higher prices and improved operational efficiencies. The stock is up more than 30% so far this year, and analysts expect the company to continue to perform well in the coming quarters.

VI Analysis

According to the latest VI Risk Rating, WASTE MANAGEMENT is a medium risk investment in terms of financial and business aspects. The company’s fundamentals reflect its long term potential, but there are 3 risk warnings in income sheet, balance sheet, and non financial areas that investors should be aware of. Register with us to check it out.

VI Peers

It has many competitors, including Republic Services Inc, Waste Connections Inc, and Macau Capital Investments Inc.

– Republic Services Inc ($NYSE:RSG)

Republic Services is an American trash and recycling company. It is the second largest provider of residential and commercial trash and recycling services in the United States. The company’s revenue for 2020 was $9.75 billion. The company’s ROE for 2020 was 13.97%.

– Waste Connections Inc ($NYSE:WCN)

Waste Connections Inc is a provider of waste management services in North America. The company has a market cap of 34.1B as of 2022 and a return on equity of 9.38%. Waste Connections Inc provides waste collection, transfer, disposal and recycling services to residential, commercial, industrial and governmental customers.

Summary

Despite the current negative media exposure, Waste Management‘s stock is rising ahead of their Q3 earnings results. This could be a good opportunity to invest in the company. Waste Management is the leading provider of waste management services in North America. They offer a variety of services including garbage collection, recycling, and landfill management. The company has been facing some challenges recently, including a lawsuit alleging that they overcharged customers, but they have been working to resolve these issues.

Overall, Waste Management is a strong company with a history of success. They are facing some challenges at the moment, but they are working to resolve them. This could be a good time to invest in the company.