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Waste Management (WM) Increases Yet Falls Behind Market: What Investors Need to Know

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In the latest trading session, Waste Management (WM - Free Report) closed at $226.24, marking a +0.59% move from the previous day. The stock trailed the S&P 500, which registered a daily gain of 1.77%. Elsewhere, the Dow gained 1.42%, while the tech-heavy Nasdaq added 2.28%.

The the stock of garbage and recycling hauler has fallen by 1.37% in the past month, leading the Business Services sector's loss of 7.87% and the S&P 500's loss of 5.73%.

The upcoming earnings release of Waste Management will be of great interest to investors. It is anticipated that the company will report an EPS of $1.68, marking a 4% fall compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $6.13 billion, showing a 18.85% escalation compared to the year-ago quarter.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $7.68 per share and a revenue of $25.63 billion, indicating changes of +6.22% and +16.16%, respectively, from the former year.

It is also important to note the recent changes to analyst estimates for Waste Management. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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 sporting a Zacks Rank of #3 (Hold).

Digging into valuation, Waste Management currently has a Forward P/E ratio of 29.3. This expresses a premium compared to the average Forward P/E of 26.29 of its industry.

We can also see that WM currently has a PEG ratio of 2.67. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Waste Removal Services industry had an average PEG ratio of 2.4.

The Waste Removal Services industry is part of the Business Services sector. Currently, this industry holds a Zacks Industry Rank of 177, positioning it in the bottom 30% 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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