Recs

17

5-Star Stocks Poised to Pop: Waste Management

Based on the aggregated intelligence of 120,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, trash handler Waste Management (NYSE: WMI  ) has earned a coveted five-star ranking. Our data has shown that five-star stocks outperform the market by a significant margin; conversely, one-star stocks have woefully lagged the market average.

With that in mind, let's take a closer look at Waste Management's business, and see what CAPS investors are saying about the stock right now.

Waste Management facts

Headquarters (founded)

Houston, Texas (1894)

Market Cap

$15.56 billion

Industry

Environment and facilities services

TTM Revenue

$13.64 billion

Management

CEO David Steiner (since 2004)
COO Lawrence O'Donnell III (since 2004)

Return on Equity (average last three years)

19.2%

Dividend Yield

3.4%

Competitors

Waste Connections (NYSE: WCN  )
Republic Services (NYSE: RSG  )

CAPS members bullish on WMI also bullish on

General Electric (NYSE: GE  )
Bank of America (NYSE: BAC  )

CAPS members bearish on WMI also bearish on

Starbucks (Nasdaq: SBUX  )
National City (NYSE: NCC  )

Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS. TTM = trailing 12 months.

Over on CAPS, fully 965 of the 999 members who have rated Waste Management -- some 97% -- believe the stock will outperform the S&P 500 going forward. These bulls include CAPS All-Star CHICMAGG and SlowRichard.

Last month, CHICMAGG didn't waste words in describing Waste Management: "i love the yield and it's a leader in the industry. it takes our waste and converts it into electricity, and sells it to power companies for a profit...works for me!"

In a pitch from last week, SlowRichard shares that sentiment, focusing on the stock's intriguing future potential:

There is always waste and it's profitable by itself. But [Waste Management] is also working to capture the methane produced by garbage they were paid to haul away years ago. With a supportive new government pushing for renewable energy, can you imagine how profitable [Waste Management] will become if they can efficiently turn their billions of tons of decaying garbage into a transportable usable gas?

What do you think about Waste Management, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 120,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.

Best Odds in the Universe!
If you're interested in a 98.79% chance at beating the market... and a 70.84% chance at DOUBLING the market's return – Motley Fool Supernova could be just what you're looking for. And get this: We arrived at these odds from 10,000 random back-tested portfolios composed of Motley Fool Co-founder David Gardner's personal stock picks.

It's why David recently handpicked a small team of world-class portfolio managers. You see, he thinks these odds can get even better! And he'd like to prove it to you...

Simply enter your email address. And the answer to the question everybody is asking will be delivered to your inbox!

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Waste Management, Republic Services, and Bank of America are Motley Fool Income Investor picks. Waste Management is also an Inside Value selection. Starbucks is a choice of both Inside Value and Stock Advisor, and the Fool owns shares of it. The Fool's disclosure policy always gets a perfect score.


Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On December 17, 2008, at 1:04 PM, Johnrap wrote:

    This idea was stolen from me...perhaps via some technology that remotely reads my brain waves. Bottom line is, I thought of this first and have been a fan of WMI for a while.

Add your comment.

Compare Brokers

Fool Disclosure

DocumentId: 796438, ~/Articles/ArticleHandler.aspx, 2/11/2012 2:10:18 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 3 hours ago Sponsored by:
DOW 12,801.23 -89.23 -0.69%
S&P 500 1,342.64 -9.31 -0.69%
NASD 2,903.88 -23.35 -0.80%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

8/4/2009 4:00 PM
WMI $28.50 Down +0.00 +0.00%
Waste Management,… CAPS Rating: *****
RSG $30.15 Up +0.06 +0.20%
Republic Services,… CAPS Rating: ****
SBUX $48.82 Down -0.38 -0.77%
Starbucks CAPS Rating: ***
WCN $31.48 Down -0.11 -0.35%
Waste Connections,… CAPS Rating: ***
BAC $8.07 Down -0.11 -1.34%
Bank of America Co… CAPS Rating: ***
GE $18.88 Down -0.26 -1.33%
General Electric C… CAPS Rating: ****
NCC $1.81 Down +0.00 +0.00%
National City Corp CAPS Rating: *

Advertisement