Analysts highlight Waste Management’s steady cash flow and $3.8 billion free cash flow target for 2026 as key defensive traits.
Waste Management (NYSE: WM) is positioned as a defensive industrial stock due to its non-discretionary demand and resilient revenue streams. The company’s garbage collection services remain unaffected by economic downturns, ensuring consistent performance.
The company expects free cash flow to approach $3.8 billion in 2026, supported by a 23-year streak of dividend increases and high return on equity. Its competitive moat, driven by hard-to-replicate landfill infrastructure, further strengthens its market position.
Waste Management’s expansion into renewable natural gas and medical waste through acquisitions like Stericycle adds growth potential. Analysts suggest its stability makes it an attractive buy during market declines.