Waste Management (WM) Valuation Check After Recent Share Price Pullback

Waste Management (WM) has quietly outperformed many defensive names this year, and with the stock recently pulling back from its highs, investors are asking whether this is a healthy pause or an early warning sign.

See our latest analysis for Waste Management.

At around $209.31 per share, WM has given investors a modest 4.37 percent year to date share price return. A 93.91 percent total shareholder return over five years suggests the recent pullback looks more like cooling momentum than a structural reversal.

If WM’s steady compounding has you thinking about what else could quietly outperform, it might be a good moment to discover fast growing stocks with high insider ownership.

With earnings still growing solidly, a double digit implied discount to fair value, and the stock trading below analyst targets, is WM quietly setting up a fresh buying opportunity, or is the market already pricing in its next leg of growth?

Most Popular Narrative: 15% Undervalued

With Waste Management trading at $209.31 and the most followed narrative pointing to a higher fair value, the gap hinges on ambitious profitability upgrades.

The company's strategic investments in sustainability, particularly in the areas of recycling and renewable energy, are showing strong, high return growth, which could drive future revenue increases. The adoption of automation and technology, such as automated recycling facilities, is leading to improved EBITDA margins, which might provide stronger future earnings.

Read the complete narrative.

Want to see the math behind this confidence upgrade? The narrative quietly bakes in faster growth, wider margins, and a premium earnings multiple that echo top tier compounders.

Result: Fair Value of $246.12 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, that upside assumes smooth execution, and weaker recycled commodity prices or a bumpy Stericycle integration could quickly challenge the bullish case.

Find out about the key risks to this Waste Management narrative.

Build Your Own Waste Management Narrative

If you would rather dig into the numbers yourself and test a different storyline, you can build a complete narrative in just minutes: Do it your way.

A great starting point for your Waste Management research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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