In the latest trading session, Waste Management (WM - Free Report) closed at $102.81, marking a +0.41% move from the previous day. This change outpaced the S&P 500's 2.42% loss on the day. At the same time, the Dow lost 2.84%, and the tech-heavy Nasdaq lost 2.59%.
Coming into today, shares of the garbage and recycling hauler had lost 3.86% in the past month. In that same time, the Business Services sector gained 5.04%, while the S&P 500 gained 4.5%.
WM will be looking to display strength as it nears its next earnings release. On that day, WM is projected to report earnings of $0.77 per share, which would represent a year-over-year decline of 30.63%. Meanwhile, our latest consensus estimate is calling for revenue of $3.51 billion, down 11.1% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.68 per share and revenue of $14.58 billion, which would represent changes of -16.36% and -5.69%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for WM. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 2.09% lower. WM currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, WM is holding a Forward P/E ratio of 27.8. For comparison, its industry has an average Forward P/E of 34.46, which means WM is trading at a discount to the group.
Investors should also note that WM has a PEG ratio of 4.84 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 4.84 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 151, which puts it in the bottom 41% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.