Waste Management Sees Lockdown-Related Surge in Demand

Waste Management has seen a 15% to 25% surge in residential trash pickup since lockdown began

Deputy Editor
May 11, 2020 at 10:29 AM
facebook twitter linkedin

The shares of Waste Management, Inc. (NYSE:WM) are down 1.1% to trade at $99.72 this morning after the firm said it would start seeking higher fees for its home trash pick up, as demand surges due to shelter-in-place orders. Waste Management's CFO Devina Rankin added that residential trash volume has surged 15% to 25% since lockdown measures were put in place. 

Despite the dip, Stifel lifted its price target to $115 from $110 -- a roughly 16% premium to current levels. Digging deeper, sentiment surrounding WM has been split, with seven analysts saying "buy" or better, compared to six saying "hold." Meanwhile, the 12-month consensus price target of $108.92 is a 9.3% premium to WM's current perch. 

Waste Management has had difficulty rebounding back to its pre-bear gap lows near the $110 region, which coincides with the stock's 320-day moving average. The equity was able to champion its 20-day moving average in early April, but has since been stuck trading between the $96 and $103 levels. For the year, WM is down 12.3%. 

With earnings come and gone, the stock's near-term options are attractively priced at the moment. WM's Schaeffer's Volatility Index (SVI) stands at 26%, in the low 16th percentile of its annual range, indicating that now is a good time to speculate on the security's next move with options. 






These investors are using the market's volatility to their advantage and scoring triple-digit gains on many of their trades.

Even in today's sideways bear market, this trading strategy has continued to provide consistency and profitability to a small group of investors. By using this approach, these traders are removing directional risk and still hitting triple-digit returns. If you want access to this strategy, and lower risk with higher returns sounds good to you, then don't wait another minute.

Join us now to receive our next trades the moment they come out!


Common mistakes options traders make


Special Offers from Schaeffer's Trading Partners