Waste Management Inc. Earns Top Rating from Guru Model

Waste Management Inc. (WM) recently attained an 81% rating using a multi-factor investor model, highlighting strong fundamentals. With its large-cap growth status in the trucking sector, WM appeals to investors seeking low volatility and strong momentum.

Date: 24-05-2025

AI Rating: 6

Waste Management Inc. (WM) Ratings Overview
Waste Management Inc. has recently been rated highly under a multi-factor investor model, achieving an impressive score of 81%. This rating indicates that the stock meets specific criteria set forth by the investment strategy which seeks low volatility stocks characterized by strong momentum and high net payout yields.

**Market Cap and Standard Deviation**
WM has passed both the market cap and standard deviation tests, showcasing its robust position in the market while exhibiting low volatility. This feature is particularly appealing to conservative investors who prefer stability over high-risk stocks that often show similar returns.

**Momentum and Net Payout Yield**
The metrics for twelve minus one momentum and net payout yield have been marked as 'neutral'. This suggests a balanced performance without any troubling trends that could deter investors in the short run. A neutral mark in momentum indicates stable stock appreciation, but not necessarily rapid growth. The same applies to the net payout yield, which signals the importance managers place on returning capital to shareholders.

**Final Ranking Reflections**
Despite scoring high overall, the final rank indicates a 'fail,' which may be concerning for potential investors. This fails to meet significant criteria outlined in the model, possibly pointing to structural issues or future challenges in revenue growth, free cash flow, or profit margins that have not been adequately addressed. Monitoring these aspects is essential for investors focusing on the next one to three months, as weaknesses here could suppress stock price growth.

In conclusion, WM is positioned favorably for conservative investors due to its low volatility and solid market capitalization. However, uncertainty around its final rank and the 'fail' designation raises questions that will require scrutiny. Investors should keep an eye on the company's performance metrics closely moving forward, particularly focusing on revenue and net income evolution as these will heavily influence price movement in the near future.

Stocks: WM