Waste Management (WM) Upgraded to Outperform as Baird Sees Upside Potential Ahead

Waste Management, Inc. (NYSE:WM) ranks among the stocks in Bill Gates’ portfolio that analysts are watching. On November 4, Baird raised its price target from $238 to $242 and upgraded Waste Management (NYSE:WM) from Neutral to Outperform.

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Despite several challenges, Baird was optimistic about Waste Management’s 2026 prospects, pointing out that the company’s present valuation “looks well-grounded and leaves solid upside for a large-cap name.”

The rating follows the company’s third-quarter adjusted earnings on October 27 which came in below analyst forecasts. The waste collection and disposal company revealed revenue of $6.44 billion, which was below the consensus forecast of $6.5 billion, and adjusted earnings per share of $1.98, which fell short of the analyst forecasts of $2.03.

The company maintained its free cash flow projection between $2.8 billion to $2.9 billion and its full-year adjusted operating EBITDA forecast at $7.475 billion and $7.625 billion.

However, Waste Management, Inc. (NYSE:WM) reduced its total company revenue forecast to around $25.275 billion, the low end of its previous guidance range, citing continuing decreases in recycled commodity pricing and somewhat lower revenue projections from WM Healthcare Solutions.

Waste Management, Inc. (NYSE:WM) is a waste collection and disposal industry leader with a dominant market share and unequaled landfill ownership.

While we acknowledge the potential of WM to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than WM and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.