Back to top

Image: Bigstock

Waste Management (WM) Increases Despite Market Slip: Here's What You Need to Know

Read MoreHide Full Article

Waste Management (WM - Free Report) closed the latest trading day at $211.80, indicating a +0.36% change from the previous session's end. The stock's change was more than the S&P 500's daily loss of 0.92%. Elsewhere, the Dow saw a downswing of 0.96%, while the tech-heavy Nasdaq depreciated by 1.6%.

Shares of the garbage and recycling hauler witnessed a gain of 1.7% over the previous month, trailing the performance of the Business Services sector with its gain of 3.11% and the S&P 500's gain of 2.68%.

The investment community will be paying close attention to the earnings performance of Waste Management in its upcoming release. The company is slated to reveal its earnings on October 28, 2024. The company is predicted to post an EPS of $1.86, indicating a 14.11% growth compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $5.5 billion, showing a 5.82% escalation compared to the year-ago quarter.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $7.24 per share and a revenue of $21.54 billion, signifying shifts of +16.96% and +5.47%, respectively, from the last year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Waste Management. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Within the past 30 days, our consensus EPS projection has moved 0.05% lower. Waste Management currently has a Zacks Rank of #3 (Hold).

Digging into valuation, Waste Management currently has a Forward P/E ratio of 29.17. This represents a discount compared to its industry's average Forward P/E of 29.21.

Also, we should mention that WM has a PEG ratio of 2.34. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Waste Removal Services industry currently had an average PEG ratio of 2.98 as of yesterday's close.

The Waste Removal Services industry is part of the Business Services sector. This industry, currently bearing a Zacks Industry Rank of 156, finds itself in the bottom 39% echelons of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Waste Management, Inc. (WM) - free report >>

Published in