Sell Waste Management?

Updated

In the following video, Fool analysts Blake Bos and Austin Smith discuss three reasons that investors in Waste Management might consider selling the stock.

Investors need to stay aware of changing trends that affect the amount of trash people generate, Blake says, including a trend toward greener products.

With current economic conditions, Waste Management may also be bumping up against its ceiling in terms of what it can charge cash-strapped municipalities for waste disposal, Austin says.


Investors should keep an eye on Waste Management's push to mine its own own resources for energy, such as natural gas. This strategy leaves the company more susceptible to commodity price changes and could potentially shrink margins.

Lastly, Waste Management's position as dominant market leader puts it in an almost monopoly-like position but also restricts its potential avenues for growth.

See more in the following video.

These areas of concern may be among the reasons Waste Management's stock price has dragged, leaving many investors wanting more. But there are also many reasons to like the stock. If you're wondering whether this dividend dynamo is a buy today, you should read our premium analyst report on the company today. Just click here now for access.

The article Sell Waste Management? originally appeared on Fool.com.

Austin Smith and The Motley Fool own shares of Waste Management. Blake Bos has no positions in the stocks mentioned above. Motley Fool newsletter services recommend Republic Services and Waste Management. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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