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Waste Management (WM) Outpaces Stock Market Gains: What You Should Know

In the latest market close, Waste Management (WM) reached $206.38, with a +1.35% movement compared to the previous day. The stock's change was more than the S&P 500's daily gain of 0.77%. Meanwhile, the Dow gained 0.49%, and the Nasdaq, a tech-heavy index, added 0.95%.

The garbage and recycling hauler's shares have seen a decrease of 3.23% over the last month, not keeping up with the Business Services sector's loss of 0.77% and the S&P 500's gain of 3.71%.

Market participants will be closely following the financial results of Waste Management in its upcoming release. The company is forecasted to report an EPS of $1.81, showcasing a 19.87% upward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $5.41 billion, up 5.7% from the year-ago period.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $7.31 per share and revenue of $21.55 billion. These totals would mark changes of +18.09% and +5.48%, respectively, from last year.

Investors should also take note of any recent adjustments to analyst estimates for Waste Management. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.23% increase. Waste Management currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, Waste Management is holding a Forward P/E ratio of 27.86. Its industry sports an average Forward P/E of 28.72, so one might conclude that Waste Management is trading at a discount comparatively.

It's also important to note that WM currently trades at a PEG ratio of 2.37. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Waste Removal Services was holding an average PEG ratio of 2.53 at yesterday's closing price.

The Waste Removal Services industry is part of the Business Services sector. At present, this industry carries a Zacks Industry Rank of 186, placing it within the bottom 27% of over 250 industries.

The Zacks Industry Rank is ordered 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.

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

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Waste Management, Inc. (WM) : Free Stock Analysis Report

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Zacks Investment Research