Waste Management Receives High Rating from Multi-Factor Model

Waste Management, Inc. has secured an 81% rating from a prominent multi-factor investment strategy, indicating strong fundamentals and valuation. However, it also contains some weaknesses in its final ranking, which could impact investor sentiments in the stock.

Date: 12-12-2024

AI Rating: 5

The report indicates that Waste Management, Inc. (WM) is rated highly at 81% using the Multi-Factor Investor model, which is based on the strategy of Pim van Vliet. This model focuses on low volatility stocks with strong momentum and high net payout yields. An 81% rating is significant, as a score above 80% usually suggests interest in the stock, while above 90% indicates strong interest.

However, despite its high overall score, the report highlights a FINAL RANK of FAIL, which could raise concerns among investors. This indicates that, while the fundamental aspects might be promising, the stock does not fully satisfy all criteria set by the investment strategy.

Furthermore, the report mentions several critical tests for WM. It has passed the MARKET CAP and STANDARD DEVIATION tests, both yielding a green status, indicating good performance and low volatility, which are favorable characteristics for conservative investors.

However, it remains NEUTRAL on the TWELVE MINUS ONE MOMENTUM and NET PAYOUT YIELD, suggesting that there are areas where the stock is not meeting ideal expectations.

Conclusion: While the high rating reflects a positive outlook, the failure in the final ranking and the neutral momentum and payout yield should alert investors to potential risks associated with WM's stock performance. Investors may want to consider these factors before making investment decisions.

Stocks: WM