Waste Management (WM) ended the recent trading session at $213.69, demonstrating a -2.03% change from the preceding day's closing price. This move lagged the S&P 500's daily gain of 0.4%. At the same time, the Dow lost 0.04%, and the tech-heavy Nasdaq gained 0.66%.
The stock of garbage and recycling hauler has risen by 1.98% in the past month, leading the Business Services sector's loss of 2.72% and the S&P 500's gain of 1.02%.
Analysts and investors alike will be keeping a close eye on the performance of Waste Management in its upcoming earnings disclosure. The company's earnings report is set to go public on October 27, 2025. On that day, Waste Management is projected to report earnings of $2.02 per share, which would represent year-over-year growth of 3.06%. Our most recent consensus estimate is calling for quarterly revenue of $6.49 billion, up 15.78% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $7.57 per share and revenue of $25.37 billion. These totals would mark changes of +4.7% and +14.98%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Waste Management. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been a 0.02% fall in the Zacks Consensus EPS estimate. Right now, Waste Management possesses a Zacks Rank of #3 (Hold).
In the context of valuation, Waste Management is at present trading with a Forward P/E ratio of 28.83. This valuation marks a discount compared to its industry average Forward P/E of 30.34.
It's also important to note that WM currently trades at a PEG ratio of 2.68. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Waste Removal Services industry stood at 2.5 at the close of the market yesterday.
The Waste Removal Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 97, putting it in the top 40% 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.
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Waste Management, Inc. (WM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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