Strong Earnings Can’t Outpace Volume Surge as Waste Management’s Stock Dips to 186th in Activity

On September 2, Waste Management (NYSE:WM) saw a 66.35% surge in trading volume to $570 million, ranking 186th in market activity. The stock closed down 0.29% despite a robust quarterly earnings report showing $1.92 per share, exceeding estimates, and a planned $0.825 dividend on September 26. The upcoming ex-dividend date is September 12, with an annual yield of 1.39%.

Analysts remain cautiously optimistic, with a "Moderate Buy" consensus. JPMorgan upgraded its rating to "Overweight" and raised its price target to $277, while Melius initiated a "Buy" rating. Institutional investors increased stakes in Q1, including Saudi Central Bank and Westend Capital Management, reflecting confidence in the company’s 19% revenue growth year-over-year.

The stock’s beta of 0.64 highlights its defensive profile, with a 50-day average of $228.48 and a 200-day average of $229.80. Despite the recent decline, analysts project an average 12-month target price of $254.35, suggesting potential for moderate gains ahead of the dividend payout.

Backtest results indicate that investing in WM five years ago would have yielded a 132% return, outperforming the S&P 500’s 63.48% gain. The stock’s three-year total return of 40.41% underscores its resilience in the industrial sector.