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Waste Management (WM) Stock Declines While Market Improves: Some Information for Investors

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In the latest close session, Waste Management (WM - Free Report) was down 2.36% at $223.39. The stock fell short of the S&P 500, which registered a gain of 0.48% for the day. At the same time, the Dow lost 0.02%, and the tech-heavy Nasdaq gained 0.94%.

The garbage and recycling hauler's shares have seen a decrease of 4.74% over the last month, not keeping up with the Business Services sector's loss of 0.6% and the S&P 500's gain of 5.13%.

Market participants will be closely following the financial results of Waste Management in its upcoming release. The company plans to announce its earnings on July 28, 2025. The company's earnings per share (EPS) are projected to be $1.89, reflecting a 3.85% increase from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $6.35 billion, up 17.49% from the prior-year quarter.

For the full year, the Zacks Consensus Estimates project earnings of $7.58 per share and a revenue of $25.55 billion, demonstrating changes of +4.84% and +15.8%, respectively, from the preceding year.

It is also important to note the recent changes to analyst estimates for Waste Management. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.03% decrease. As of now, Waste Management holds a Zacks Rank of #3 (Hold).

From a valuation perspective, Waste Management is currently exchanging hands at a Forward P/E ratio of 30.2. This expresses a premium compared to the average Forward P/E of 28.22 of its industry.

We can also see that WM currently has a PEG ratio of 3.03. 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. Waste Removal Services stocks are, on average, holding a PEG ratio of 3.13 based on yesterday's closing prices.

The Waste Removal Services industry is part of the Business Services sector. This industry, currently bearing a Zacks Industry Rank of 156, finds itself in the bottom 37% echelons of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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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