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Waste Management (WM) Exceeds Market Returns: Some Facts to Consider

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Waste Management (WM - Free Report) closed at $230.61 in the latest trading session, marking a +1.09% move from the prior day. The stock outperformed the S&P 500, which registered a daily gain of 0.07%. Elsewhere, the Dow saw a downswing of 0.7%, while the tech-heavy Nasdaq appreciated by 0.18%.

The stock of garbage and recycling hauler has fallen by 0.2% in the past month, lagging the Business Services sector's gain of 1.45% and the S&P 500's gain of 5.71%.

The upcoming earnings release of Waste Management will be of great interest to investors. The company's earnings report is expected on July 28, 2025. The company's upcoming EPS is projected at $1.89, signifying a 3.85% increase compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $6.34 billion, showing a 17.4% escalation compared to the year-ago quarter.

WM's full-year Zacks Consensus Estimates are calling for earnings of $7.57 per share and revenue of $25.53 billion. These results would represent year-over-year changes of +4.7% and +15.73%, respectively.

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. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been a 0.11% fall in the Zacks Consensus EPS estimate. Waste Management is holding a Zacks Rank of #3 (Hold) right now.

Looking at valuation, Waste Management is presently trading at a Forward P/E ratio of 30.13. This indicates a premium in contrast to its industry's Forward P/E of 27.94.

Meanwhile, WM's PEG ratio is currently 2.83. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. WM's industry had an average PEG ratio of 2.59 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 158, putting it in the bottom 37% of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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