Waste Management, Inc. WM is benefiting from a strong solid waste business, which is witnessing consistent increase in cash and earnings.In a year’s time, shares of the company have gained 18.4%, significantly outperforming the 11.1% rally of the industry it belongs to.With an expected long-term earnings per share growth rate of 11.9% and a market cap of $38.6 billion, Waste Management seems to be a stock that investors should retain in their portfolio for now.Factors Driving Waste Management’s PerformanceWaste Management continues to execute its core operating objectives of focused differentiation and continuous improvement, and instil price and cost discipline to achieve better margins. Focused differentiation through capitalization of extensive assets ensures profitable growth and competitive advantages.Also, the company’s solid waste business is in great shape. Notably, the second quarter of 2018 marked the fifth consecutive quarter of more than 2% growth in price and volume. Waste Management expects yield momentum to continue in its solid waste lines of business in the forthcoming quarters.Waste Management is increasingly focusing on maximizing return on disposal network. A strong economy and benefits of volumes from third-party haulers selecting the company’s close-end disposal sites is leading to increased volume being disposed at its facilities. Also, it is seeing an opportunity to leverage on logistical benefits of its disposal network and increase the returns on large investment in that network.The company's cost-reduction initiatives have helped it to accomplish gross margin expansion and EBITDA growth over the quarters, and the trend is expected to continue in the upcoming quarters.To ConcludeDespite riding on significant growth prospects, Waste Management is not free from overhangs. The company has a debt-laden balance sheet and faces seasonal fluctuations in revenues. However, we believe that a robust solid waste business and cost-reduction initiatives will continue to boost Waste Management’s top and bottom lines.Zacks Rank and Stocks to ConsiderCurrently, Waste Management carries a Zacks Rank #3 (Hold).Some better-ranked stocks in the broader Business Services sector include Core-Mark Holding Company CORE, H&R Block HRB and Paychex PAYX. While Core-Mark sports a Zacks Rank #1 (Strong Buy), H&R Block and Paychex carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.The long-term expected earnings per share growth rate for Core-Mark, H&R Block and Paychex is 13%, 10% and 8.4%, respectively.Today's Stocks from Zacks' Hottest StrategiesIt's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.See Them Free>>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Core-Mark Holding Company, Inc. (CORE): Free Stock Analysis Report Paychex, Inc. (PAYX): Free Stock Analysis Report Waste Management, Inc. (WM): Free Stock Analysis Report H&R Block, Inc. (HRB): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research