Analysts Boost Waste Management: EPS Growth Attracts Investors

Wall Street upgrades Waste Management Inc., citing potential for EPS growth to $2.10 by Q3 2025, a 26% rise. With a low beta of 0.7 and a price target of $277, the stock may offer stable returns amidst market volatility.

Date: 30-05-2025

AI Rating: 7

**Analyst Upgrades and Stock Sentiment**: Recent analyst activity indicates a positive outlook for Waste Management Inc. (NYSE: WM). Tami Zakaria from J.P. Morgan Chase has upgraded the stock to an 'Overweight' rating compared to a prior 'Neutral' stance, highlighting the potential for a substantial upside. The consensus price target has been revised to $247 per share, signaling a 4.2% upside from current levels, with an aspirational target of $277 representing a 17% forecasted increase. Such upgrades typically reflect confidence in earnings potential and overall market resilience.

The anticipated growth in earnings per share (EPS) to $2.10 for Q3 2025 also contributes to this favorable sentiment. This growth is a significant increase of 26% compared to the current EPS of $1.67. In the investment community, rising EPS is often associated with price increases, as it suggests enhanced profitability and efficiency within the company, making it an attractive vehicle for investors seeking solid returns.

**Company Stability amid Market Volatility**: Additionally, Waste Management's low beta of 0.7 indicates lower volatility relative to the S&P 500, suggesting stability even in uncertain economic environments. The stock's robust position amidst ongoing trade tariffs demonstrates its defensive nature, likely appealing to risk-averse investors. The recent decline in short interest by 18.7% further illustrates market optimism, as decreasing short positions indicate that fewer investors are betting against the stock.

**Valuation Considerations**: While the stock’s price-to-book (P/B) ratio stands at 11.5x—higher than the sector average of 5.4x—this premium reflects the market’s expectation for growth and resilience against broader market fluctuations. Investors often justify such valuations when a company's fundamentals, like EPS growth, align well with projected price targets and overall market dynamics.

Given these factors, Waste Management appears to be positioned not only for upward price movement following analyst upgrades but also to weather potential market disturbances, making it an enticing consideration for investors looking for stability and growth.

Stocks: WM