Waste Management (WM) remains well-positioned to profit from the long-term, secular recycling and no-waste trends, and that's the main reason I'm reiterating my buy rating for the company's shares, first recommended on March 25, 2009, at a price of $25.74.

The recession hurt WM's results in 2009, as the commercial impact of reduced industrial output rippled throughout the U.S. economy. But that's just a temporary, cycling downturn. The long-term trend looks very good for WM, and here's why: 20 million customers, 267 owned/operated landfills, 16 waste-to-energy plants, 105 recycling plants, and more than 100 beneficial-use landfill gas projects.

The U.S. and global recycling trend has not only continued – its intensifying. In fact, communities are starting to shift from a theory of 'low waste' to a theory of 'no waste' – recycle or reuse everything, which is why I'm Reiterating my Buy rating for Waste Management (WM), first recommended on March 25, 2009 at a price of $25.74. If you bought WM in March, you're up about 26%.

Waste Management posted Q3 EPS of 54 cents, 1 cent above the First Call Q3 EPS estimate of 53c. Institutional investors (IIs) are looking past WM's likely 2-4% revenue decline in 2009 to volume growth in 2010, as demand for both trash and recycling services increases as the U.S. economic recovery gains steam. The First Call FY2009/FY2010 EPS estimates for WM are $1.95 to $2.13.

Here are some highlights from last week's earnings coverage from BloggingStocks:

• Alcatel-Lucent (NYSE: ALU) reported a surprise profit but is expected to return to losses next quarter.
• Coach Inc. (NYSE: COH) profit and revenue were in line with expectations, sending shares lower.
• Corning Inc. (NYSE: GLW) posted better-than-expected earnings but other concerns drove down shares.
• eHealth Inc. (NASDAQ: EHTH) reported solid Q2 numbers but Wall Street was not impressed.
• Goodyear Tire & Rubber Co. (NYSE: GT) posted a smaller-than-expected Q2 loss, sending shares higher.
• JAKKS Pacific Inc. (NASDAQ: JAKK) reported swinging to a Q2 net loss and revenues were flat.

Waste Management (NYSE: WMI - option chain) announced its earnings yesterday and dropped almost 5% on the report, but also sneaked in a little tidbit that I find amusing. WMI declared that as of 8/5, it will trade on the NYSE as WM, which until earlier this year designated Washington Mutual. How appropriate that a company that specializes in, um... waste management, has collected this trashed ticker from the curb and will recycle it for its own purposes.

WMI CEO David Steiner did not mention that connection in the company's announcement, instead saying,"From our trucks to our uniforms, the very recognizable WM represents our company and our people. The WM symbol reinforces how customers, communities and shareholders have come to think of us over the past years, and aligns our branding with our stock symbol." I guess that makes sense it you picture a green Waste Management truck or the logo attached to this post, but I imagine the board members considering the change and relishing how apt it would be.

As for the stock itself, yesterday's earnings came in a penny below expectations and guided downwards for the rest of the year, but this business is not going away any time soon. Also, yesterday's stock dip could have been the result of raised expectations, as WMI had been rising steadily for almost all of July. If you think that the stock won't fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on WMI.

I'm Reiterating my Buy rating for Waste Management (NYSE: WMI), first recommended on March 25, 2009 at a price of $25.74.

Look for rough sailing for the remainder of 2009 for Waste Management, and that should limit the topside to shares for Q3 and Q4. Still, any sign that the U.S. economy continues to strengthen will send institutional investors back into WMI, on increased demand for both trash and recycling services.