Why Waste Management, Inc. (WM) Earnings Are Stuck in Slow-Growth Mode

The rise of niche companies also takes away some expansion potential from Waste Management. Waste Connections, Inc. (NYSE:WCN) has increasingly focused on cleaning contaminated oil fields and drilling facilities as well as recovering oil from storage tanks, and that has helped the company build a name for itself that could potentially prevent Waste Management from competing effectively in the space. Similarly, with Nuverra Environmental Solutions Inc (NYSE:NES)‘s success in providing water and wastewater treatment for energy producers, it’d be hard for Waste Management to make inroads in the energy sector.

In the Waste Management earnings report, see if the company gives any guidance on where it expects its best prospects for growth in the future. In all likelihood, though, Waste Management will stay on its steady upward track, and it’ll be up to you to decide whether it’s worth paying up for shares that offer stability and a dividend yield approaching 3.5%.

The article Why Waste Management Earnings Are Stuck in Slow-Growth Mode originally appeared on Fool.com.

Fool contributor Dan Caplinger has no position in any stocks mentioned. You can follow him on Twitter @DanCaplinger. The Motley Fool recommends Republic Services and Waste Management. The Motley Fool owns shares of Nuverra Environmental Solutions and Waste Management and has the following options: long January 2014 $4 calls on Nuverra Environmental Solutions and short January 2014 $3 puts on Nuverra Environmental Solutions.

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