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Waste Management (WM) Gains But Lags Market: What You Should Know

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In the latest trading session, Waste Management (WM - Free Report) closed at $162.80, marking a +0.54% move from the previous day. This change lagged the S&P 500's 0.99% gain on the day.

Coming into today, shares of the garbage and recycling hauler had lost 3.23% in the past month. In that same time, the Business Services sector gained 0.6%, while the S&P 500 gained 0.42%.

Waste Management will be looking to display strength as it nears its next earnings release. In that report, analysts expect Waste Management to post earnings of $1.53 per share. This would mark year-over-year growth of 6.25%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.22 billion, up 3.8% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $6.03 per share and revenue of $20.65 billion, which would represent changes of +7.87% and +4.81%, respectively, from the prior year.

Any recent changes to analyst estimates for Waste Management should also be noted by investors. These revisions help to show the ever-changing nature of near-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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

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. Over the past month, the Zacks Consensus EPS estimate has moved 0.01% higher. Waste Management is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, Waste Management is holding a Forward P/E ratio of 26.83. This represents a premium compared to its industry's average Forward P/E of 16.39.

It is also worth noting that WM currently has a PEG ratio of 2.66. 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 2.79 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 168, putting it in the bottom 34% 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

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