Waste Management’s Growth Potential and Strong Core Operations Justify Buy Rating

William Blair analyst Trevor Romeo has reiterated their bullish stance on WM stock, giving a Buy rating on October 14.

Trevor Romeo has given his Buy rating due to a combination of factors that highlight Waste Management’s potential for future growth. Despite mixed third-quarter results, the company demonstrated strong trends in its core solid waste operations, with expanded margins and solid pricing and volume metrics. Notably, municipal solid waste volumes and yields were particularly strong, contributing to better-than-expected consolidated margins.
Additionally, while there were some setbacks, such as lower-than-expected revenue growth and challenges in the WM Healthcare Solutions segment, the company’s outlook for 2026 free cash flow generation remains promising. The reaffirmation of 2025 adjusted EBITDA and free cash flow guidance, with an expectation of slightly higher margins, further supports the positive outlook. These factors collectively underpin Trevor Romeo’s confidence in Waste Management’s stock, leading to the Buy rating.

According to TipRanks, Romeo is an analyst with an average return of -8.1% and a 22.73% success rate. Romeo covers the Industrials sector, focusing on stocks such as Korn Ferry, Casella Waste, and Waste Management.

In another report released on October 14, J.P. Morgan also maintained a Buy rating on the stock with a $277.00 price target.