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

In the latest trading session, Waste Management (WM) closed at $165.38, marking a -0.01% move from the previous day. This move lagged the S&P 500's daily gain of 0.09%. At the same time, the Dow lost 0.03%, and the tech-heavy Nasdaq lost 2.51%.

Coming into today, shares of the garbage and recycling hauler had gained 6.8% in the past month. In that same time, the Business Services sector gained 3.21%, while the S&P 500 gained 6.17%.

Wall Street will be looking for positivity from Waste Management as it approaches its next earnings report date. This is expected to be April 26, 2023. The company is expected to report EPS of $1.26, down 2.33% from the prior-year quarter. 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.

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Investors should also note any recent changes to analyst estimates for Waste Management. Recent revisions tend to reflect the latest 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 shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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 holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, Waste Management is holding a Forward P/E ratio of 27.57. This valuation marks a premium compared to its industry's average Forward P/E of 22.53.

It is also worth noting that WM currently has a PEG ratio of 2.53. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. WM's industry had an average PEG ratio of 2.88 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 178, putting it in the bottom 30% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within 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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Waste Management, Inc. (WM) : Free Stock Analysis Report

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