In the latest trading session, Waste Management (WM) closed at $165.50, marking a +1.45% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.41%. At the same time, the Dow lost 0.11%, and the tech-heavy Nasdaq lost 4.08%.
Coming into today, shares of the garbage and recycling hauler had gained 5.69% in the past month. In that same time, the Business Services sector gained 2.11%, while the S&P 500 gained 6.51%.
Investors will be hoping for strength from Waste Management as it approaches its next earnings release, which is expected to be April 26, 2023. On that day, Waste Management is projected to report earnings of $1.26 per share, which would represent a year-over-year decline of 2.33%. Meanwhile, our latest consensus estimate is calling for revenue of $4.84 billion, up 3.86% from the prior-year quarter.
WM's full-year Zacks Consensus Estimates are calling for earnings of $6 per share and revenue of $20.63 billion. These results would represent year-over-year changes of +7.33% and +4.71%, respectively.
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. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.74% lower. Waste Management is currently a Zacks Rank #3 (Hold).
Digging into valuation, Waste Management currently has a Forward P/E ratio of 27.19. This represents a premium compared to its industry's average Forward P/E of 25.
Also, we should mention that WM has a PEG ratio of 2.5. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. WM's industry had an average PEG ratio of 2.78 as of yesterday's close.
The Waste Removal Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 186, putting it in the bottom 27% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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