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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 the most recent trading day at $216.18, moving -1.09% from the previous trading session. The stock's performance was behind the S&P 500's daily loss of 0.19%. Meanwhile, the Dow experienced a drop of 0.8%, and the technology-dominated Nasdaq saw a decrease of 0.1%.

Coming into today, shares of the garbage and recycling hauler had gained 0.11% in the past month. In that same time, the Business Services sector lost 0.17%, while the S&P 500 gained 2.26%.

Investors will be eagerly watching for the performance of Waste Management in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on January 28, 2026. The company's earnings per share (EPS) are projected to be $1.95, reflecting a 14.71% increase from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $6.38 billion, up 8.26% from the prior-year quarter.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $7.51 per share and revenue of $25.27 billion. These totals would mark changes of +3.87% and 0%, respectively, from last year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Waste Management. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.09% higher. At present, Waste Management boasts a Zacks Rank of #3 (Hold).

In terms of valuation, Waste Management is currently trading at a Forward P/E ratio of 26.38. Its industry sports an average Forward P/E of 25.74, so one might conclude that Waste Management is trading at a premium comparatively.

We can additionally observe that WM currently boasts a PEG ratio of 2.45. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Waste Removal Services was holding an average PEG ratio of 2.22 at yesterday's closing price.

The Waste Removal Services industry is part of the Business Services sector. This industry, currently bearing a Zacks Industry Rank of 181, finds itself in the bottom 27% echelons of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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