Waste Management Inc Receives Strong Rating from Guru Model

Waste Management Inc (WM) has received an 85% rating from Validea's Growth Investor model, indicating significant growth potential despite some fundamental weaknesses. Investors will want to consider this score in light of its metrics and what it may signal for future performance.

Date: 12-04-2025

AI Rating: 6

Waste Management Inc (WM) Analysis
Waste Management Inc has recently been evaluated based on Validea's guru fundamental report, which focuses on stocks with consistent earnings and sales growth, reasonable valuations, and manageable debt levels. WM achieved a commendable score of 85%, indicating strong potential as a growth stock.

From a professional investor's perspective, several important metrics have been highlighted that affect the stock's outlook. The **Earnings Per Share (EPS)** growth rate for the current quarter is promising, as it has been reported to be greater than the average of the prior three quarters, which is a favorable sign for potential investors. Moreover, the consistency in positive earnings growth over multiple quarters reinforces confidence in the company's financial health.

However, there are areas of concern. The report indicates a **failure in Revenue Growth relative to EPS Growth**, which suggests that revenue is not increasing at a pace that keeps up with the growth in earnings per share. Additionally, a significant point of concern is the **Total Debt/Equity Ratio**, which also failed the established benchmarks. High leverage can place a company at risk, especially in economic downturns or if interest rates rise.

For professional investors, these mixed signals make WM an interesting, though cautionary, investment prospect. The stock is fundamentally solid on several fronts, but investors should be wary of the growth disparities and debt levels before committing fully. Overall, while the strong rating from the Growth Investor model reflects high investor interest, the accompanying weaknesses suggest that a more cautious approach may be warranted in the short term.

Stocks: WM