Should I buy Waste Management stock in 2025? Insights for South African investors

What is Waste Management?

How much is the Waste Management stock?

The price of Waste Management stock is falling this week. As of now, WM shares trade at $237.76, with a 24-hour gain of $0.61 (+0.26%), but a weekly decrease of 1.90%. The company’s market cap stands at $95.43 billion, and average daily volume over the past three months reaches 1.81 million shares. The current P/E Ratio is 35.70, with a dividend yield of 1.39%, and a stock beta of 0.68, indicating relatively low volatility. For South African investors, Waste Management offers a stable option in the US market, although its high valuation suggests future price moves may be moderate.

Our full analysis on the Waste Management stock

After a thorough examination of Waste Management’s (WM) latest quarterly results, three-year share price evolution, and sectoral dynamics, we’ve leveraged our proprietary blend of fundamental data, technical indicators, and peer benchmarking to distil the current opportunity set. With the stock outperforming the broader market YTD and executing on strategic acquisitions amid robust cash flows, it merits close attention. So, why might Waste Management stock once again become a strategic entry point into the environmental services sector in 2025?

Recent Performance and Market Context

Waste Management has continued to deliver robust returns for its shareholders over the recent quarters. As of 29 May 2025, the stock trades at $237.76, reflecting a solid +17.8% year-to-date (YTD) gain and a +15.3% advance over the past twelve months. While the last week saw a minor retracement (-1.9%), this slight dip is seen by many market participants as an opportunity to engage at more attractive levels given the strength of its medium-term trajectory.

Several catalysts have underpinned this positive movement. Most notably, the successful integration of WM Healthcare Solutions and approval of the $5.8 billion Stericycle acquisition have positioned Waste Management as North America’s undisputed leader in environmental, medical, and hazardous waste. Additionally, the appointment of John J. Morris Jr. as president signals management continuity and fresh operational momentum.

Crucially, the macro environment remains tailwind-rich. As regulatory bodies in the US and globally tighten environmental standards, demand for advanced waste management and renewable energy solutions is accelerating. Developed market economies, including South Africa, are witnessing policy shifts favouring sustainable practices, which adds relevance for local investors with global portfolios.

Technical Analysis

From a technical perspective, WM’s structure is underscored by tangible, sustained uptrends. Despite short-term consolidation, the stock is currently trading above all major moving averages:

• 5-day MA: $235.88
• 20-day MA: $232.23
• 50-day MA: $229.84
• 100-day MA: $224.65
• 200-day MA: $217.58

All moving average signals remain positive, reflecting pronounced upper momentum and long-term trend health. The relative strength index (RSI) sits at 60.7 (neutral/bullish bias), suggesting that while not overbought, further upside remains plausible.

Key technical support is identified at $235.21—the day’s low—which has held firmly, while the 52-week resistance at $239.32 serves as the immediate ceiling. The aggregate technical consensus is notably bullish (15 buy signals to 5 bearish), reinforcing the impression that WM is in a constructive setup potentially anticipating another breakout attempt.

Although oscillators like MACD and Williams %R indicate short-term cooling, these can be interpreted as natural pauses within a broader structural rally. Historically, such patterns have presented entry points for medium- and long-term growth-focused investors.

Fundamental Analysis

Waste Management’s Q1 2025 results underscore both resilience and growth potential. Quarterly revenue reached $6.018 billion, a remarkable 16.7% year-on-year increase—well above sector averages and driven by the successful expansion of its healthcare and legacy business units (the latter up 12% in the quarter). While EPS of $1.58 narrowly missed consensus by $0.04, this minor shortfall was offset by robust free cash flow and strong operating EBITDA of $1.67 billion.

The company’s current price/earnings ratio (P/E) stands at 35.7—undeniably at a premium to historical norms. Yet, this valuation reflects a powerful combination of:

• Market leadership and recurring, contract-based revenue
• Diversification into high-growth segments (healthcare, renewable energy)
• A durable competitive moat through technology innovation, recycling, and landfill gas-to-energy projects

Further, a stable 1.39% dividend yield and quarterly dividend ($0.82; ex-dividend 6 June 2025) deliver ongoing returns for patient investors.

Relative to peers, WM’s growth trajectory and margins justify renewed interest, especially given the premium multiples consistently assigned to best-of-breed operators in essential infrastructure.

Volume and Liquidity

WM continues to attract deep institutional interest, as evidenced by its average daily volume of 1.8 million shares and a public float of 401.45 million shares. This high liquidity allows for efficient entry and exit, minimising bid-ask spreads—a critical element for both retail and professional investors in the South African context looking to optimise transaction costs in US markets.

Moreover, the consistent trading volume is a strong indicator of market confidence and underpins the dynamic potential for upward valuation discovery, particularly in anticipation of new catalysts.

Catalysts and Positive Outlook

Looking ahead, several growth levers can be expected to sustain Waste Management’s upward trajectory:

• Stericycle Acquisition: Integration will unlock new revenue streams in medical and hazardous waste, amplifying WM’s margin potential and sector reach.
• Healthcare Solutions Expansion: This segment is already benefiting from double-digit growth, as regulatory scrutiny on medical waste intensifies.
• Renewable Energy Projects: Investment in converting landfill gas to energy aligns with global ESG trends and opens up high-margin ancillary revenues.
• ESG Leadership: WM’s technological advances and sustainability initiatives reinforce its brand and appeal to increasingly environmentally-conscious investors and asset allocators.

Analyst sentiment has become increasingly constructive, with 17 buy and 13 hold ratings (and no sell recommendations), and a mean 12-month target price of $247.35 (+4% vs the current price), with some models projecting a value as high as $309 over the medium term.

Investment Strategies

Given WM’s solid fundamental and technical underpinnings, the stock appears attractive under several investment time-horizons:

• Short-term: With the recent retracement towards support at $235 and technical consolidation, nimble traders may look for upward reversals off this level—especially as anticipation builds ahead of ex-dividend and integration milestones.
• Medium-term: Investors may find significant value in positioning ahead of Stericycle-driven financial updates, and as Q2 results (to be released in July/August) begin to reflect early synergies.
• Long-term: The stock’s durable market position, inflation-protected contracts, and embedded ESG upside make it a compelling anchor for defensive growth portfolios, especially for South African investors seeking to diversify from local cyclicals towards global, non-correlated assets.

Ideal positioning may involve incremental accumulation near current levels or on any brief, news-driven weakness toward $230–$235, with a view to capturing both capital gains and steadily compounding dividends.

Is It the Right Time to Buy Waste Management?

Waste Management stands out as an exceptionally well-run enterprise entrenched at the crossroads of environmental stewardship and recurring cash flows. Its Q1 performance, strategic acquisitions, and leadership continuity underscore an ongoing narrative of disciplined execution and transformative sector leadership. Supported by technical signals, high analyst conviction, and compelling macro trends around ESG and resource sustainability, the company seems poised for a new chapter of measured outperformance.

To summarise, the stock offers:

• Steady revenue growth and resilient margins
• Robust technical structure with confirmed support and upside momentum
• High liquidity and institutional sponsorship
• Sector-leading ESG innovation and new market segments

For investors seeking predictable growth in defensive, future-facing sectors, Waste Management may well represent an outstanding addition to a globally balanced portfolio. The convergence of fundamental excellence, technical clarity, and upcoming catalysts strongly justify renewed interest and active consideration at present price levels.

In summary, Waste Management appears remarkably well positioned to deliver continued value creation, and the prevailing set-up offers a persuasive case for inclusion in forward-looking investment strategies.

How to buy Waste Management stock in ZA?

Buying Waste Management (WM) stock online is now a simple and secure process, particularly when you use a regulated broker operating in South Africa. You can invest in WM either by buying shares directly (spot buying), becoming an actual shareholder, or by trading Contracts for Difference (CFDs), which allow you to profit from price movements with leverage. Each approach offers distinct benefits, whether you aim to hold long-term or trade actively. To help you find the platform that’s right for you, you'll find a detailed broker comparison further down this page.

Cash buying

When you buy Waste Management shares "for cash," you are purchasing the actual stock and becoming a direct shareholder. This method is popular among South African investors who prefer a straightforward way to participate in global markets and potentially earn dividends. With most South African brokers, you typically pay a fixed commission per order (often around R100–R200, or approximately $5–$10 USD equivalent).

Example

If Waste Management shares are priced at $237.76 each, a $1,000 purchase (about R18,600 at an exchange rate of R18.6/USD) allows you to buy roughly 4 shares ($237.76 × 4 = $951), factoring in a $5 brokerage fee.
✔️ Gain scenario: If the share price rises by 10% to $261.54, your shares are now worth $1,100.
Result: +$100 gross gain, which is a 10% return on your investment (excluding exchange rate effects and possible dividends).

Trading via CFD

CFD trading lets you speculate on the price movements of Waste Management shares without owning the underlying stock. With CFDs, you can use leverage (borrowed funds) to increase your market exposure, but keep in mind this amplifies both gains and losses. Instead of a flat commission, CFD brokers typically charge a spread (the gap between buy and sell price) and a daily overnight financing fee if you hold positions beyond a day.

Example

Say you open a CFD position on Waste Management with $1,000 and use 5x leverage. This provides $5,000 worth of exposure to the stock.
✔️ Gain scenario: If the stock price rises by 8%, your position increases by 8% × 5 = 40%.
Result: +$400 gain on your $1,000 stake (excluding spread and overnight fees).

Final advice

Before you start, it’s crucial to compare brokers’ fees, trading conditions, and available platforms, as these can vary widely (see our comparator below). Ultimately, the best method depends on your personal objectives and risk profile: spot buying is best for long-term shareholders seeking stability and dividends, while CFD trading suits more active traders looking for flexibility and leverage. Either way, with the proper research and a regulated broker, investing in Waste Management has never been more accessible for South African investors.

Our 7 tips for buying the Waste Management stock

The latest news about Waste Management

Waste Management reported robust Q1 2025 revenue growth of 16.7%, driven by strategic integration and sector expansion.
The company’s first-quarter results, released in the past week, highlighted a significant increase in revenue to $6.018 billion compared to Q1 2024, primarily fueled by the successful integration of WM Healthcare Solutions and surging demand for environmental services. Although the reported earnings per share ($1.58) came in just shy of analyst expectations ($1.62), the top-line acceleration signals resilience and operational effectiveness—a point of interest for investors in South Africa’s ESG-focused investment landscape, where revenue momentum and sustainable business models remain central selection criteria.

Consensus among analysts remains overwhelmingly positive, with a price target above current market value and no sell recommendations issued.
As of 29 May 2025, the average analyst target price stands at $247.35, representing further expected upside from the current level, and the range of estimates is broad yet bullish ($229.00 to $277.00). The distribution of recommendations—17 buys and 13 holds, with zero sells—confirms a favourable consensus. This outlook is especially relevant for institutional investors in South Africa seeking reliable, low-beta (0.68) global defensives with stable dividend flows (1.39% yield) for portfolio diversification.

The technical analysis picture is constructive, with key moving averages and overall consensus signalling upward momentum for the stock.
Despite some short-term mixed signals from momentum indicators, all major moving averages (5, 20, 50, 100, and 200 days) have flashed buy signals, and the technical consensus rates WM as a buy (15 bullish indicators versus only 5 bearish). This trend raises confidence for South African market participants interested in technical allocations to international equities, particularly given the presence of WM in major offshore mutual funds and ETFs that are accessible through South African brokers.

Recent corporate developments, including the appointment of John J. Morris Jr. as President, support leadership continuity amid expansion.
The transition, formalized in May 2025, and previously-announced acquisition of Stericycle for $5.8 billion underscore managerial stability and ongoing strategic focus. These moves reinforce WM’s leadership in environmental services, with potential long-term benefits for South African investors who are attentive to top-tier management and M&A execution when screening for US-based industry leaders within retirement annuities and global feeder funds.

Waste Management’s focus on renewable energy and medical waste solutions aligns with sustainability mandates increasingly prioritized by South African asset managers.
WM’s continued investment in landfill gas-to-energy projects and healthcare waste management solutions not only drive growth in high-value verticals but also demonstrate a strong commitment to resource efficiency—an aspect closely tracked by local institutional allocators and regulatory frameworks in South Africa, including Prescribed Asset Requirements and ESG integration in pension portfolios. These strategic directions may offer indirect exposure and reputational alignment for South African investors leveraging international ESG-compliant mandates.

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P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.