Waste Management Could See Further Upside
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Waste Management is poised for growth due to strong pricing, volume recovery, and strategic investments. The company benefits from cost synergies from the Stericycle acquisition and cost reduction initiatives, with potential upside from conservative EPS estimates.
February 28, 2025 | 9:30 pm
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Waste Management is expected to see further upside due to strong pricing, volume recovery, and strategic investments in renewable natural gas and medical waste markets. The company benefits from cost synergies from the Stericycle acquisition and management's cost reduction initiatives, with automation targeting $450 million in savings. WM stock trades at a discount to peers, with potential upside from conservative EPS estimates and possible valuation re-rating.
The article highlights several positive factors for Waste Management, including strong pricing, volume recovery, and strategic investments, which are expected to drive long-term growth. Additionally, cost synergies from the Stericycle acquisition and management's cost reduction initiatives, including automation savings, are likely to improve margins. The stock is trading at a discount to peers, suggesting potential upside from conservative EPS estimates and a possible valuation re-rating.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100