Waste Management (WM) Outpaces Stock Market Gains: What You Should Know

In the latest trading session, Waste Management (WM) closed at $147.19, marking a +1.57% move from the previous day. This change outpaced the S&P 500's 0.95% gain on the day. Meanwhile, the Dow gained 0.64%, and the Nasdaq, a tech-heavy index, added 0.12%.

Heading into today, shares of the garbage and recycling hauler had lost 7.11% over the past month, lagging the Business Services sector's loss of 4.78% and the S&P 500's loss of 3.49% in that time.

Wall Street will be looking for positivity from Waste Management as it approaches its next earnings report date. The company is expected to report EPS of $1.36, up 7.09% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $4.84 billion, up 8.12% from the year-ago period.

WM's full-year Zacks Consensus Estimates are calling for earnings of $5.55 per share and revenue of $19.39 billion. These results would represent year-over-year changes of +14.67% and +8.13%, respectively.

Any recent changes to analyst estimates for Waste Management should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.

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. The Zacks Consensus EPS estimate remained stagnant within the past month. Waste Management is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, Waste Management is holding a Forward P/E ratio of 26.12. This valuation marks a premium compared to its industry's average Forward P/E of 18.84.

Meanwhile, WM's PEG ratio is currently 2.4. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Waste Removal Services was holding an average PEG ratio of 2.4 at yesterday's closing price.

The Waste Removal Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 60, putting it in the top 24% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
To read this article on Zacks.com click here.
Zacks Investment Research