Stock Entry Point Article​

Waste Management, Inc. (WM) 1

Waste Management is one of the largest providers of waste and environmental services. Investors looking to buy waste management stocks should consider Waste Management Inc as one possible option. The company is not only one of the most recognizable brands in the waste management sector, but it also has important competitive advantages in terms of permits for operating landfills and route density cost advantages. That makes the company a must-look for recycling stocks 2020.

Recently, Waste Management Inc reported its Q22020 earnings. Revenues were down 9.8% year-on-year at $3.56 billion. Adjusted earnings per share were also down 20.7% year-on-year to $0.88 per share. However, both earnings and revenues were above consensus estimates. Analysts had expected revenues of $3.52 billion and adjust earnings of $0.8 per share. The company’s collection and disposal business saw yield growth of $55 million. But, a volume decline worth $386 million pulled overall revenues down. The recycling segment was a bright spot with revenues up 4.2% to $275 million. Waste Management is one of the top prospects among the best recycling stocks.

According to Jim Fish, CEO, Waste Management Inc, “Year-over-year declines in operating EBITDA in the collection and disposal business improved each month of the quarter as we were able to successfully flex down our operating costs, eliminate discretionary spending, and improve productivity.”

Another factor that makes Waste Management one of the best environmental services stocks is its digitization efforts. During the earnings call, Mr. Fish said, “Using the onboard units, the smart truck platform and our data and analytics capabilities, all of which we’ve discussed for several years, we will seamlessly connect all the WM functions required to service our customers so we can give them a completely digitalized customer experience. This will put us on par with other great companies and other industries who have separated themselves through their own digitalization efforts.”


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