WM - Why This Trash Stock Can Beat the Market
Waste Management (NYSE: WM) is a resilient business, providing essential services by disposing of our kitchen grease and recycling our junk. Unlike many rival waste companies, its strategy of investing in people and green technology prepares the company for continued strong results in both its business and its share price.
Coming out of the financial crisis of 2009, WM stock has been a six-bagger with dividends included, absolutely crushing the market averages. But the stock is currently down about 15% from its recent February highs, as the COVID-19 pandemic struck WM alongside most other companies. In early May, CEO Jim Fish withdrew the company's guidance,citing increased costs from its COVID-19 response and declining commercial revenue -- especially among endangered small businesses. And the company is still working with regulators to finalize its merger with Advanced Disposal (NYSE: ADSW).
So why should you feel confident that this company will only get stronger? Waste Management's ability to solve problems for people, communities, and the environment make it an attractive company for consumers and environmental, social, and governance -- or "ESG" -- investors who look for companies that share their values.