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Waste Management (WM) Suffers a Larger Drop Than the General Market: Key Insights

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Waste Management (WM - Free Report) closed at $217.16 in the latest trading session, marking a -1.03% move from the prior day. This change lagged the S&P 500's daily loss of 0.5%. On the other hand, the Dow registered a loss of 0.38%, and the technology-centric Nasdaq decreased by 0.5%.

The garbage and recycling hauler's stock has dropped by 2.84% in the past month, falling short of the Business Services sector's loss of 0.74% and the S&P 500's gain of 2.74%.

Market participants will be closely following the financial results of Waste Management in its upcoming release. The company plans to announce its earnings on October 27, 2025. The company's earnings per share (EPS) are projected to be $2.02, reflecting a 3.06% increase from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $6.49 billion, indicating a 15.71% increase compared to the same quarter of the previous year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $7.57 per share and revenue of $25.37 billion, which would represent changes of +4.7% and +14.98%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Waste Management. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

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 past month, there's been a 0.3% rise in the Zacks Consensus EPS estimate. Right now, Waste Management possesses a Zacks Rank of #3 (Hold).

In terms of valuation, Waste Management is currently trading at a Forward P/E ratio of 29. This expresses a discount compared to the average Forward P/E of 30.04 of its industry.

It's also important to note that WM currently trades at a PEG ratio of 2.68. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Waste Removal Services industry was having an average PEG ratio of 2.48.

The Waste Removal Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 149, putting it in the bottom 40% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow WM in the coming trading sessions, be sure to utilize Zacks.com.


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