Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Waste Management (NYSE: WM), the nation's top trash hauler, has earned a coveted five-star ranking.

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 (1987)

Market Cap

$17.35 billion


Environmental and facilities services

Trailing-12-Month Revenue

$12.12 billion


CEO David Steiner (since 2004)
CFO Robert Simpson (since 2004)

Return on Equity (Average, Past 3 Years)



$1.17 billion / $9.62 billion

Dividend Yield



Casella Waste Systems (Nasdaq: CWST)
Republic Services (NYSE: RSG)
Waste Connections (NYSE: WCN)

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 97.5% of the 1,752 members who have rated Waste Management believe the stock will outperform the S&P 500 going forward. These bulls include nemo1107 and All-Star PsychoDr, who is ranked in the top 15% of our community.

Less than two months ago, CAPS member nemo1107 tapped Waste Management as an essential selection: "Safe investments are ones that are deemed necessary by society. Water, Food, Cemeteries, and Sanitation. No one wants to be surrounded by garbage. This company is the leader in its industry, and will continue to out-pace the market."

Waste Management's massive scale, cash flow generation, and stable business model continue to support its five-star CAPS rating. The company's strong pricing power -- gained by owning the nation's largest network of landfills -- drives returns on capital that are substantially higher than smaller rivals Republic Services, Casella, and Waste Connections. And with the shares trailing each of those same rivals over the past six months, Waste Management may be a timely opportunity, to boot.

CAPS All-Star PsychoDr sums up the bull case:

I love waste management. Not just because they pick up my trash every week, and not just because they only charge me every other month ($40.00 a pop), but because they also charge every neighbor in my neighborhood the same $40.00 a month. ... Now the really big thing for me is the methane they are using to produce electricity. ... How can you not love a company that gets people to pay them to pick up things that they then use to create other things that they sell to other people.

What do you think about Waste Management, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Waste Management and Republic Services are Motley Fool Income Investor picks. Waste Management is also an Inside Value choice, and Motley Fool Options has recommended a write covered straddle position on it. Try any of our Foolish newsletter services free for 30 days.

True to its name, The Motley Fool is made up of a motley assortment of writers and analysts, each with a unique perspective; sometimes we agree, sometimes we disagree, but we all believe in the power of learning from each other through our Foolish community. The Fool's disclosure policy always gets a perfect score.