Cramer's Lightning Round: Waste Management is a Buy

In Jim Cramer's latest "Lightning Round" segment on CNBC's "Mad Money," the investing guru shared his bullish outlook on Waste Management (WM), the leading provider of environmental solutions in the United States and Canada. Cramer praised the company's strong economic moat, driven by its scale, pricing power, and vertical integration, which ensures high profitability and market leadership in waste collection and disposal. He also highlighted Waste Management's strategic acquisitions, such as Stericycle, which contribute to organic growth and enhance the company's competitive position in the waste management industry.



Cramer also pointed out Waste Management's investments in recycling and renewable natural gas (RNG) projects, which align with the company's sustainability ambitions and create new revenue streams. These projects, along with the company's disciplined cost control and strong organic revenue growth, have driven record margins and earnings growth. In the third quarter of 2024, Waste Management reported an adjusted operating EBITDA margin of 30.5%, a record high, and is on track to deliver about $6.5 billion in adjusted operating EBITDA in 2024, near the upper end of its guidance range.

Analysts have taken notice of Waste Management's strong performance, with the average rating for WM stock being "Buy." The 12-month stock price forecast is $231.67, an increase of 8.43% from the latest price. Cramer's enthusiasm for Waste Management is rooted in the company's ability to deliver consistent financial performance, grow through strategic acquisitions, and invest in sustainable technologies that drive long-term value for shareholders.



In conclusion, Cramer's Lightning Round segment on Waste Management highlights the company's strong economic moat, strategic acquisitions, investments in recycling and RNG projects, and positive analyst ratings. With its record margins, earnings growth, and bullish analyst outlook, Waste Management is an attractive investment opportunity for investors seeking exposure to the waste management industry.