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Waste Management (WM) Sees a More Significant Dip Than Broader Market: Some Facts to Know

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In the latest market close, Waste Management (WM - Free Report) reached $209, with a -1.25% movement compared to the previous day. This change lagged the S&P 500's daily loss of 0.39%. Meanwhile, the Dow experienced a drop of 0.61%, and the technology-dominated Nasdaq saw a decrease of 0.32%.

Shares of the garbage and recycling hauler witnessed a loss of 3.06% over the previous month, trailing the performance of the Business Services sector with its gain of 3% and the S&P 500's gain of 3.6%.

The investment community will be closely monitoring the performance of Waste Management in its forthcoming earnings report. The company's upcoming EPS is projected at $1.80, signifying a 3.45% increase compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.88 billion, up 12.74% from the year-ago period.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $7.32 per share and revenue of $22.05 billion, indicating changes of +18.26% and +7.96%, respectively, compared to the previous year.

Investors might also notice 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, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.22% higher. Waste Management is holding a Zacks Rank of #3 (Hold) right now.

With respect to valuation, Waste Management is currently being traded at a Forward P/E ratio of 28.91. This denotes no noticeable deviation relative to the industry's average Forward P/E of 28.91.

One should further note that WM currently holds a PEG ratio of 2.34. 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 industry currently had an average PEG ratio of 2.66 as of yesterday's close.

The Waste Removal Services industry is part of the Business Services sector. With its current Zacks Industry Rank of 198, this industry ranks in the bottom 22% of all industries, numbering over 250.

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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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