Waste ManagementWM

is proving that one investor’s trash is another’s treasure. While market turbulence has many stocks taking a beating, this refuse collection giant’s shares are up 14% this year, outpacing the S&P 500’s 6% decline. The company’s defensive nature has made it an attractive safe haven during recent market volatility, with its latest results reinforcing that strength.

Beyond the dumpster dive: WM delivered its first-quarter results on Monday, posting earnings that beat expectations thanks to better pricing initiatives and its newly acquired WM Healthcare Solutions business. That said, net income slipped to $637M year-over-year, while revenue rose 16.7% to $6.02B — just shy of Wall Street’s forecast. Regardless, CEO Jim Fish remained upbeat, saying, “Our first quarter results reflect the strong track record of the WM team as we started the year delivering on each of our strategic priorities.”

• Its healthcare division added $619M in revenue and $95M in adjusted EBITDA, keeping the company on track for expected savings of up to $100M in 2025.
• WM’s legacy business achieved an adjusted operating EBITDA margin of 30% for the fourth consecutive quarter, with operating costs down 0.5% from last year.

Dirty Work, Clean Profits

Waste Management has rewarded investors with regular dividends for over two decades, distributing $1.2B in 2024 alone — making it a reliable option for those seeking stable returns. Motley Fool called WM a “recession-resilient” stock that’s better positioned than its peers. With consistent 12% annual earnings growth over five years and solid gains across healthcare and retail clients, Waste Management has continued to earn analyst upgrades:

• Citigroup analysts kept their Buy rating and raised the price target to $274, pointing to a potential 21% upside.
• HSBC upgraded WM from Hold to Buy, lifting its target to $265, citing stronger confidence in its defensive model and sustainability efforts.

Expansion revolution: The company’s strategy includes upskilling employees for new roles as facilities become more automated, with former hand sorters now working in system operations. Recently, WM marked the opening of four state-of-the-art recycling and renewable natural gas (RNG) facilities, including its new Elkridge site in Maryland — now the organization’s largest recycling operation by capacity. By 2026, WM plans to complete 39 new or upgraded recycling facilities and 20 new RNG plants, potentially enough to power 1.7M homes. With rising demand for environmental solutions and relative insulation from tariff concerns, Waste Management is carving out a bigger role in the essential services sector —  turning yesterday’s waste into tomorrow’s resources.