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Waste Management (WM) Stock Sinks As Market Gains: What You Should Know
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In the latest trading session, Waste Management (WM - Free Report) closed at $159.74, marking a -1.3% move from the previous day. This change lagged the S&P 500's 1.12% gain on the day. Meanwhile, the Dow gained 1.01%, and the Nasdaq, a tech-heavy index, lost 0.08%.
Heading into today, shares of the garbage and recycling hauler had gained 4.3% over the past month, lagging the Business Services sector's gain of 5.67% and the S&P 500's gain of 4.63% in that time.
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, 2022. On that day, Waste Management is projected to report earnings of $1.12 per share, which would represent year-over-year growth of 5.66%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.45 billion, up 8.14% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.38 per share and revenue of $19.03 billion. These totals would mark changes of +11.16% and +6.1%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Waste Management. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 remained stagnant. Waste Management is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Waste Management is currently trading at a Forward P/E ratio of 30.11. For comparison, its industry has an average Forward P/E of 25.72, which means Waste Management is trading at a premium to the group.
It is also worth noting that WM currently has a PEG ratio of 2.73. 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. The Waste Removal Services was holding an average PEG ratio of 2.88 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 107, which puts it in the top 43% 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.
To follow WM in the coming trading sessions, be sure to utilize Zacks.com.
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Waste Management (WM) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, Waste Management (WM - Free Report) closed at $159.74, marking a -1.3% move from the previous day. This change lagged the S&P 500's 1.12% gain on the day. Meanwhile, the Dow gained 1.01%, and the Nasdaq, a tech-heavy index, lost 0.08%.
Heading into today, shares of the garbage and recycling hauler had gained 4.3% over the past month, lagging the Business Services sector's gain of 5.67% and the S&P 500's gain of 4.63% in that time.
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, 2022. On that day, Waste Management is projected to report earnings of $1.12 per share, which would represent year-over-year growth of 5.66%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.45 billion, up 8.14% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.38 per share and revenue of $19.03 billion. These totals would mark changes of +11.16% and +6.1%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Waste Management. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 remained stagnant. Waste Management is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Waste Management is currently trading at a Forward P/E ratio of 30.11. For comparison, its industry has an average Forward P/E of 25.72, which means Waste Management is trading at a premium to the group.
It is also worth noting that WM currently has a PEG ratio of 2.73. 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. The Waste Removal Services was holding an average PEG ratio of 2.88 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 107, which puts it in the top 43% 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.
To follow WM in the coming trading sessions, be sure to utilize Zacks.com.