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

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Waste Management (WM - Free Report) closed the most recent trading day at $171.40, moving -1.16% from the previous trading session. This change lagged the S&P 500's daily gain of 0.12%. Elsewhere, the Dow gained 0.03%, while the tech-heavy Nasdaq added 5.14%.

Waste Management will be looking to display strength as it nears its next earnings release, which is expected to be July 25, 2023. The company is expected to report EPS of $1.27, down 11.81% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $5.22 billion, up 3.79% from the year-ago period.

WM's full-year Zacks Consensus Estimates are calling for earnings of $6.03 per share and revenue of $20.64 billion. These results would represent year-over-year changes of +7.87% and +4.77%, respectively.

Investors should also note any recent changes to analyst estimates for Waste Management. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

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

Looking at its valuation, Waste Management is holding a Forward P/E ratio of 28.74. For comparison, its industry has an average Forward P/E of 22.5, which means Waste Management is trading at a premium to the group.

Also, we should mention that WM has a PEG ratio of 2.85. 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 3.06 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 112, putting it in the top 45% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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