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

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Waste Management (WM - Free Report) closed the most recent trading day at $219.66, moving +1.53% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.64%. Elsewhere, the Dow saw an upswing of 0.47%, while the tech-heavy Nasdaq appreciated by 0.52%.

Shares of the garbage and recycling hauler witnessed a loss of 0.13% over the previous month, trailing the performance of the Business Services sector with its gain of 7.31%, and the S&P 500's gain of 3%.

The investment community will be paying close attention to the earnings performance of Waste Management in its upcoming release. The company is slated to reveal its earnings on January 28, 2026. In that report, analysts expect Waste Management to post earnings of $1.95 per share. This would mark year-over-year growth of 14.71%. Alongside, our most recent consensus estimate is anticipating revenue of $6.43 billion, indicating a 9.03% upward movement from the same quarter last year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $7.51 per share and revenue of $25.28 billion, which would represent changes of +3.87% and +14.6%, respectively, from the prior year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Waste Management. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 past month, the Zacks Consensus EPS estimate has shifted 0.18% downward. Right now, Waste Management possesses a Zacks Rank of #3 (Hold).

In the context of valuation, Waste Management is at present trading with a Forward P/E ratio of 28.8. Its industry sports an average Forward P/E of 29.9, so one might conclude that Waste Management is trading at a discount comparatively.

It is also worth noting that WM currently has a PEG ratio of 2.67. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. WM's industry had an average PEG ratio of 2.38 as of yesterday's close.

The Waste Removal Services industry is part of the Business Services sector. This industry, currently bearing a Zacks Industry Rank of 99, finds itself in the top 41% echelons of all 250+ industries.

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.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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