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Waste Management (WM) Stock Moves -0.83%: What You Should Know

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In the latest trading session, Waste Management (WM - Free Report) closed at $153.55, marking a -0.83% move from the previous day. This change was narrower than the S&P 500's daily loss of 1.23%. At the same time, the Dow lost 1.29%, and the tech-heavy Nasdaq lost 0.14%.

Heading into today, shares of the garbage and recycling hauler had gained 9.4% over the past month, outpacing the Business Services sector's gain of 3.03% and the S&P 500's gain of 5.04% in that time.

Investors will be hoping for strength from Waste Management as it approaches its next earnings release. The company is expected to report EPS of $1.12, up 5.66% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.45 billion, up 8.14% from the year-ago period.

WM's full-year Zacks Consensus Estimates are calling for earnings of $5.38 per share and revenue of $19.03 billion. These results would represent year-over-year changes of +11.16% and +6.1%, respectively.

Investors might also notice recent changes to analyst estimates for Waste Management. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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 past month, the Zacks Consensus EPS estimate has moved 0.29% higher. Waste Management is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, Waste Management currently has a Forward P/E ratio of 28.8. This valuation marks a premium compared to its industry's average Forward P/E of 26.23.

It is also worth noting that WM currently has a PEG ratio of 2.61. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Waste Removal Services was holding an average PEG ratio of 2.84 at yesterday's closing price.

The Waste Removal Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 163, which puts it in the bottom 36% 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.

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