Waste Management Outlook - A Mixed Picture with Weak Technicals and Strong Fundamentals

Market Snapshot

Headline Takeaway: Waste Management is facing a weak technical outlook with a 3.15 internal diagnostic score, but fundamentals remain strong with a 6.74 score.

News Highlights

Recent news includes major shifts in U.S. vaccine policy under Health Secretary Robert F. Kennedy Jr., which could influence public health markets, and Trump’s efforts to fast-track uranium mining in Utah. While these stories don’t directly impact Waste Management, they reflect broader economic and regulatory uncertainty that could ripple through the market. Additionally, REX Shares' plans for Ethereum and Solana ETFs highlight the evolving crypto landscape, which could affect investor sentiment and capital reallocation across sectors.

Analyst Views & Fundamentals

Average Rating Score: The simple average of analyst ratings is 3.80, while the performance-weighted rating is 5.34. Analysts show some dispersion in their views, with recent ratings ranging from "Strong Buy" to "Neutral," suggesting a lack of consensus.

Despite a recent price decline of -2.70%, market expectations are optimistic, indicating a mismatch between sentiment and current performance.

Key Fundamental Values:

• Operating revenue growth rate: 17.87% (score: 2 out of 10)
• Price-to-book (PB) ratio: 2.21 (score: 3 out of 10)
• Return on assets (ROA): 1.59% (score: 3 out of 10)
• Return on equity (ROE): 7.90% (score: 3 out of 10)
• Net income to revenue: 21.92% (score: 3 out of 10)
• Non-current liabilities to total liabilities: 84.07% (score: 4 out of 10)
• Interest coverage ratio: 4.70x (score: 3 out of 10)
• Diluted earnings per share growth rate: -2.03% (score: 2 out of 10)

Money-Flow Trends

Fund flows for Waste Management show a negative overall trend, with an internal diagnostic score of 7.74. Large and extra-large investor inflows are below average, with inflow ratios at 47.76% and 43.77%, respectively. Retail investors are also not contributing positively, with small investor inflow ratios at 49.57%. The broader block investor trend is negative at 45.76%, indicating a lack of support from institutional and high-net-worth players. This suggests a cautious stance from major market participants.

Key Technical Signals

Technically, Waste Management is in a weak position with a score of 3.15, suggesting investors should be cautious. The top indicators include:

• Williams %R Oversold: Score of 3.3 (internal diagnostic score). This indicator suggests the stock is near oversold territory, but the signal strength is limited.
• Marubozu White: Score of 2.99 (internal diagnostic score). This pattern indicates indecision in the market, and it has shown mixed historical performance with an average return of 0.01% and a win rate of 46.15%.

Recent indicators over the past five days include multiple occurrences of the WR Oversold signal, with the latest on September 8, 2025. The trend remains neutral to bearish, and momentum is unclear, with bearish indicators outnumbering bullish ones. Investors are advised to avoid the stock unless there are clear signs of reversal.

Conclusion

Waste Management is in a tricky spot. While fundamentals remain robust and fundamentals-based scores are favorable, the technical landscape is weak and volatile. The lack of consensus among analysts and the mismatch between price movement and sentiment suggest a cautious approach. For now, it may be wise to wait for clearer signs of trend reversal before entering new positions. Investors with exposure should monitor key technical levels and keep an eye on the broader economic backdrop, especially regulatory and trade-related developments that could influence investor sentiment.