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Waste Management (WM) Falls More Steeply Than Broader Market: What Investors Need to Know

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Waste Management (WM - Free Report) ended the recent trading session at $219.71, demonstrating a -1.08% change from the preceding day's closing price. This move lagged the S&P 500's daily loss of 0.74%. Meanwhile, the Dow experienced a drop of 0.63%, and the technology-dominated Nasdaq saw a decrease of 0.76%.

Heading into today, shares of the garbage and recycling hauler had gained 3.53% over the past month, outpacing the Business Services sector's gain of 2.83% and the S&P 500's gain of 0.79%.

The investment community will be closely monitoring the performance of Waste Management in its forthcoming earnings report. The company is scheduled to release its earnings on January 28, 2026. The company is forecasted to report an EPS of $1.95, showcasing a 14.71% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $6.38 billion, showing a 8.29% escalation compared to the year-ago quarter.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $7.51 per share and a revenue of $25.27 billion, indicating changes of +3.87% and +14.55%, respectively, from the former year.

Any recent changes to analyst estimates for Waste Management should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.19% decrease. At present, Waste Management boasts a Zacks Rank of #3 (Hold).

Digging into valuation, Waste Management currently has a Forward P/E ratio of 29.59. This denotes a discount relative to the industry average Forward P/E of 30.41.

Investors should also note that WM has a PEG ratio of 2.75 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. WM's industry had an average PEG ratio of 2.39 as of yesterday's close.

The Waste Removal Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 96, which puts it in the top 39% 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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