Waste Management (WM): One of the Best Defensive Stocks to Buy?

We just covered the 14 Best Defensive Stocks to Invest In Now and Waste Management, Inc. (NYSE:WM) ranks 12th on this list.

Waste Management, Inc. (NYSE:WM) is often termed one of the most reliable sleep-well-at-night stocks in the market. Described as a legal monopoly, it provides an essential service that is entirely decoupled from consumer discretionary spending. The fundamental reason WM is defensive is that trash collection is not optional. Whether the economy is in a boom or a recession, households and businesses must dispose of waste. This creates a revenue stream that is far more stable than tech, retail, or even some healthcare sectors. Starting a waste company requires massive capital, regulatory permits, and landfill ownership. Because WM owns the largest network of landfills in North America, it acts as the leader for the industry, as competitors often have to pay WM tipping fees to dump trash in their sites.

In an environment where energy and labor costs are volatile, Waste Management, Inc. (NYSE:WM) has superior pricing power. Most of WM’s municipal and commercial contracts include CPI-linked price escalators. This means that when inflation rises, the firm is legally allowed to raise its prices automatically, protecting its profit margins from being squeezed by rising costs. In Q1 2026, the company reported an expansion in its EBITDA margins to nearly 30%, driven by the rollout of automated collection trucks and AI-driven routing that reduced fuel consumption. The firm’s capital allocation strategy provides a significant margin of safety as well. The board recently authorized a $1.5 billion share repurchase program.

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