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Waste Management (WM) Rises As Market Takes a Dip: Key Facts

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Waste Management (WM - Free Report) closed at $208.20 in the latest trading session, marking a +0.83% move from the prior day. This change outpaced the S&P 500's 0.95% loss on the day. Elsewhere, the Dow lost 1.09%, while the tech-heavy Nasdaq lost 0.84%.

The garbage and recycling hauler's stock has dropped by 1.58% in the past month, falling short of the Business Services sector's loss of 0.45% and the S&P 500's gain of 1.78%.

Market participants will be closely following the financial results of Waste Management in its upcoming release. The company plans to announce its earnings on April 24, 2024. The company is forecasted to report an EPS of $1.51, showcasing a 15.27% upward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $5.2 billion, indicating a 6.22% increase compared to the same quarter of the previous year.

WM's full-year Zacks Consensus Estimates are calling for earnings of $6.88 per share and revenue of $21.71 billion. These results would represent year-over-year changes of +11.15% and +6.31%, respectively.

Any recent changes to analyst estimates for Waste Management should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.3% decrease. Waste Management currently has a Zacks Rank of #3 (Hold).

In the context of valuation, Waste Management is at present trading with a Forward P/E ratio of 30. For comparison, its industry has an average Forward P/E of 27.68, which means Waste Management is trading at a premium to the group.

Also, we should mention that WM has a PEG ratio of 3.13. 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 2.78 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 171, which puts it in the bottom 33% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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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