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Strength Seen in Waste Management (WM): Can Its 3.9% Jump Turn into More Strength?
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Waste Management (WM - Free Report) shares soared 3.9% in the last trading session to close at $224.19. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 0.8% gain over the past four weeks.
The stock recorded this price increase as the company benefits from prudent pricing, automation, recycling expansion, and investments in renewable energy and buyouts.
This garbage and recycling hauler is expected to post quarterly earnings of $2.18 per share in its upcoming report, which represents a year-over-year change of +10.1%. Revenues are expected to be $6.8 billion, up 5.6% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Waste Management, the consensus EPS estimate for the quarter has been revised marginally higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on WM going forward to see if this recent jump can turn into more strength down the road.
Waste Management belongs to the Zacks Waste Removal Services industry. Another stock from the same industry, Xylem (XYL - Free Report) , closed the last trading session 0.6% higher at $103.37. Over the past month, XYL has returned -4.2%.
Xylem's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.47. Compared to the company's year-ago EPS, this represents a change of +7.3%. Xylem currently boasts a Zacks Rank of #3 (Hold).
View the Zacks #1 Rank List
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Strength Seen in Waste Management (WM): Can Its 3.9% Jump Turn into More Strength?
Waste Management (WM - Free Report) shares soared 3.9% in the last trading session to close at $224.19. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 0.8% gain over the past four weeks.
The stock recorded this price increase as the company benefits from prudent pricing, automation, recycling expansion, and investments in renewable energy and buyouts.
This garbage and recycling hauler is expected to post quarterly earnings of $2.18 per share in its upcoming report, which represents a year-over-year change of +10.1%. Revenues are expected to be $6.8 billion, up 5.6% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Waste Management, the consensus EPS estimate for the quarter has been revised marginally higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on WM going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Waste Management belongs to the Zacks Waste Removal Services industry. Another stock from the same industry, Xylem (XYL - Free Report) , closed the last trading session 0.6% higher at $103.37. Over the past month, XYL has returned -4.2%.
Xylem's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.47. Compared to the company's year-ago EPS, this represents a change of +7.3%. Xylem currently boasts a Zacks Rank of #3 (Hold).