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Waste Management (WM) Stock Dips While Market Gains: Key Facts

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The latest trading session saw Waste Management (WM - Free Report) ending at $213.14, denoting a -0.3% adjustment from its last day's close. This change lagged the S&P 500's 0.47% gain on the day. Elsewhere, the Dow gained 0.79%, while the tech-heavy Nasdaq added 0.28%.

Prior to today's trading, shares of the garbage and recycling hauler had gained 5.25% over the past month. This has outpaced the Business Services sector's gain of 2.97% and the S&P 500's gain of 3.48% in that time.

The upcoming earnings release of Waste Management will be of great interest to investors. The company's earnings report is expected on October 28, 2024. The company's earnings per share (EPS) are projected to be $1.86, reflecting a 14.11% increase from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $5.5 billion, indicating a 5.82% upward movement from the same quarter last year.

For the full year, the Zacks Consensus Estimates project earnings of $7.24 per share and a revenue of $21.54 billion, demonstrating changes of +16.96% and +5.47%, respectively, from the preceding year.

Investors should also note any recent changes to analyst estimates for Waste Management. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.01% higher. Waste Management is currently a Zacks Rank #3 (Hold).

In the context of valuation, Waste Management is at present trading with a Forward P/E ratio of 29.53. For comparison, its industry has an average Forward P/E of 29.03, which means Waste Management is trading at a premium to the group.

We can also see that WM currently has a PEG ratio of 2.39. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Waste Removal Services industry held an average PEG ratio of 2.93.

The Waste Removal Services industry is part of the Business Services sector. This industry, currently bearing a Zacks Industry Rank of 192, finds itself in the bottom 24% echelons of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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