Waste Management Stock: Tariff Proof, But Overbought?

Core Insights - Waste Management Inc. reported earnings with EPS of $1.67, exceeding forecasts by $0.08, while revenue was $6.02 billion, falling short of the expected $6.14 billion but showing a 16.7% year-over-year increase [1][9] - The stock dipped about 1% post-report but quickly recovered, nearing its all-time high set in early April [2] - The company is recognized for its resilience against tariffs, being a leading provider of waste management services [3] Financial Performance - WM Healthcare Solutions, a key growth sector, contributed approximately 10% to the company's revenue in Q1, with a reported margin increase of about 20% [4] - Waste Management generated $475 million in free cash flow (FCF) for the quarter, maintaining a full-year FCF outlook of $2.68 billion to $2.78 billion [8] - The company's P/E ratio stands at 34.35, aligning with its historical averages, indicating consistent valuation trends [7] Growth Initiatives - The company launched two new automated recycling projects in Q1 and plans to open seven additional next-generation recycling plants in 2025, along with eight renewable natural gas facilities this year [5][6] - Waste Management's commitment to sustainability is evident in its initiatives that enhance the circular economy [6] Market Position - Analysts have a Moderate Buy rating on Waste Management, with a 12-month price target of $243.29, suggesting a potential upside of 4.15% [7][10] - The stock is currently viewed as being within the Neutral range on the Relative Strength Index, having reached overbought levels in April [10]