Waste Management, Inc. (WM), headquartered in Houston, Texas, is a leading provider of comprehensive waste management and environmental services. With a market cap of $90.4 billion, this industry leader drives innovation in sustainability and waste solutions, offering advanced technologies and services that enable businesses and communities to manage waste, recycling, and environmental impact efficiently.

Companies worth $10 billion or more are typically considered “large-cap stocks,” Waste Management firmly fits this category. This underscores its status as a dominant force in the waste services industry, reflecting its significant size, influence, and leadership. Operating across North America, Waste Management serves millions of residential, commercial, and industrial customers through its comprehensive waste collection, recycling, and disposal services. 

Waste Management is down 2.3% from its 52-week high of $230.39, achieved on Nov. 27. Shares of Waste Management gained 7.5% over the three months, underperforming the broader S&P 500 Index ($SPX) 9.4% gains during the same time frame.

Over the longer term, WM has delivered a 25.6% gain on a YTD basis, slightly lagging behind SPX’s 26.8% return. Similarly, over the past 52 weeks, WM's 29.5% increase has trailed the SPX's 31.7% rise.

However, WM has traded above its 50-day moving average since late October and consistently above its 200-day moving average over the past year, indicating its bullish trend.

Waste Management has faced some recent underperformance relative to the broader market, driven by concerns over increased competition in the waste disposal sector and potential regulatory changes. Despite these challenges, the company's solid profitability and focus on sustainability position it well for long-term growth. 

Waste Management reported impressive Q3 results, surpassing market expectations, with WM stock edging up 5.2% in the following trading session. Revenue climbed 7.9% year-over-year to $5.61 billion, exceeding analyst estimates by 1.7%. Adjusted EPS of $1.96 outpaced forecasts by 4%, while EBITDA of $1.71 billion surpassed expectations by 1.6%. Additionally, Waste Management reaffirmed its full-year EBITDA guidance of $6.5 billion at the midpoint, meeting market projections.

Its rival, Republic Services, Inc. (RSG), has gained 31% over the past 52 weeks and has risen 30.3% on a YTD basis, outpacing WM over the same time frame, respectively.

Analysts remain cautiously optimistic about its prospects despite the stock underperforming the broader sector. WM has a consensus rating of “Moderate Buy” from the 20 analysts covering the stock and has a mean price target of $232.31, suggesting a potential upside of 3.2% from its current price.