We’re Trimming This Holding Before Earnings and Following a Big Run
Severe winter weather poses a headwind for this stock and some others in the Pro Portfolio.
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| Symbol | Transaction Type | # Shares Traded | Recent Price $ | Shares Owned After Trade | % Portfolio |
|---|---|---|---|---|---|
WM | Sell | 100 | 231.50 | 900 | 3.75 |
After you receive this Alert, we will sell 100 shares of Waste Management (WM) at or near $231.50. Following the trade, WM shares will account for roughly 3.75% of the Pro Portfolio.
Following what we can only describe as a considerable run in WM shares from their November low near $197 to the current share price above $231, we are taking some chips off the table. Helping influence our decision, the shares are in an overbought condition with an RSI of more than 71.
We recognize WM will report its quarterly results after Wednesday’s market close, but the reality is the almost 18% move over the last several weeks likely means the market is expecting a sizable upside surprise. The risk we see on that front is the impact of winter storm Fern and the potential for this weekend’s storm, Gianna, to become a Bomb Cyclone.
That disruption could be a headwind in WM Q1 2026 guidance, but remember, we’re playing the longer game with WM shares that focuses on the benefits of incremental automation and cost reductions as well as the continued integration of the medical waste business. Based on what we learn on those fronts, we will revisit our current $255 price target as needed and potentially our One rating.
Why aren’t we downgrading WM shares as we lock in this slice of gains? Fair question, and the short answer is we don’t want to whipsaw our rating should WM full-year 2026 outlook surprise to the upside.
Connecting the Winter Weather Dots
Because we’re fans of connecting the dots, our comment about Fern and Gianna and the guidance headwind extends to United Rentals (URI) . Extreme winter weather makes it pretty tough sledding for construction activity. That also explains why we’re seeing shares of Martin Marietta (MLM) fetch a downgrade today from Loop Capital. I wouldn’t be surprised if we see the same for former Pro Portfolio holding Vulcan Materials (VMC) .
(Please note that we are looking to execute these trades at or near the share price mentioned above. Once the trade is completed, subscribers can see the trade's executed price here. Be sure to toggle the chart to sort by Purchase Date.)
At the time of publication, TheStreet Pro Portfolio was long WM, URI.
