Waste Management (WM - Free Report) closed the most recent trading day at $114.87, moving -0.11% from the previous trading session. This change was narrower than the S&P 500's 1.23% loss on the day. At the same time, the Dow lost 1.28%, and the tech-heavy Nasdaq lost 1.13%.
Coming into today, shares of the garbage and recycling hauler had lost 3.64% in the past month. In that same time, the Business Services sector lost 2.73%, while the S&P 500 gained 1.95%.
Wall Street will be looking for positivity from WM as it approaches its next earnings report date. This is expected to be October 23, 2019. The company is expected to report EPS of $1.15, unchanged from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $4 billion, up 4.58% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.33 per share and revenue of $15.63 billion, which would represent changes of +3.1% and +4.81%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for WM. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Within the past 30 days, our consensus EPS projection remained stagnant. WM is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, WM is holding a Forward P/E ratio of 26.58. For comparison, its industry has an average Forward P/E of 27.64, which means WM is trading at a discount to the group.
We can also see that WM currently has a PEG ratio of 3.11. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Waste Removal Services industry currently had an average PEG ratio of 2.98 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 159, which puts it in the bottom 38% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.