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Waste Management (WM) Gains But Lags Market: What You Should Know
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Waste Management (WM - Free Report) closed at $173.71 in the latest trading session, marking a +0.18% move from the prior day. The stock lagged the S&P 500's daily gain of 1.06%. At the same time, the Dow added 0.71%, and the tech-heavy Nasdaq gained 0.18%.
Heading into today, shares of the garbage and recycling hauler had gained 0.97% over the past month, outpacing the Business Services sector's loss of 3.38% and the S&P 500's loss of 1.14% 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 $1.50, up 19.05% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.05 billion, up 8.33% from the year-ago period.
WM's full-year Zacks Consensus Estimates are calling for earnings of $5.70 per share and revenue of $19.77 billion. These results would represent year-over-year changes of +17.77% and +10.27%, 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Waste Management is currently sporting a Zacks Rank of #2 (Buy).
Digging into valuation, Waste Management currently has a Forward P/E ratio of 30.4. Its industry sports an average Forward P/E of 20.92, so we one might conclude that Waste Management is trading at a premium comparatively.
Meanwhile, WM's PEG ratio is currently 2.57. 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. WM's industry had an average PEG ratio of 2.57 as of yesterday's close.
The Waste Removal Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 64, which puts it in the top 26% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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 (WM) Gains But Lags Market: What You Should Know
Waste Management (WM - Free Report) closed at $173.71 in the latest trading session, marking a +0.18% move from the prior day. The stock lagged the S&P 500's daily gain of 1.06%. At the same time, the Dow added 0.71%, and the tech-heavy Nasdaq gained 0.18%.
Heading into today, shares of the garbage and recycling hauler had gained 0.97% over the past month, outpacing the Business Services sector's loss of 3.38% and the S&P 500's loss of 1.14% 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 $1.50, up 19.05% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.05 billion, up 8.33% from the year-ago period.
WM's full-year Zacks Consensus Estimates are calling for earnings of $5.70 per share and revenue of $19.77 billion. These results would represent year-over-year changes of +17.77% and +10.27%, 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Waste Management is currently sporting a Zacks Rank of #2 (Buy).
Digging into valuation, Waste Management currently has a Forward P/E ratio of 30.4. Its industry sports an average Forward P/E of 20.92, so we one might conclude that Waste Management is trading at a premium comparatively.
Meanwhile, WM's PEG ratio is currently 2.57. 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. WM's industry had an average PEG ratio of 2.57 as of yesterday's close.
The Waste Removal Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 64, which puts it in the top 26% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.