Waste Management (WM) closed at $215.97 in the latest trading session, marking a -1.42% move from the prior day. This change lagged the S&P 500's 0.34% loss on the day. On the other hand, the Dow registered a loss of 0.94%, and the technology-centric Nasdaq increased by 0.16%.
Shares of the garbage and recycling hauler witnessed a gain of 4.67% over the previous month, beating the performance of the Business Services sector with its gain of 2.46%, and the S&P 500's gain of 1.19%.
The investment community will be paying close attention to the earnings performance of Waste Management in its upcoming release. The company is slated to reveal its earnings on January 28, 2026. It is anticipated that the company will report an EPS of $1.95, marking a 14.71% rise compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $6.38 billion, reflecting a 8.26% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $7.51 per share and revenue of $25.27 billion, which would represent changes of +3.87% and 0%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Waste Management. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.1% upward. Waste Management is currently sporting a Zacks Rank of #3 (Hold).
In the context of valuation, Waste Management is at present trading with a Forward P/E ratio of 26.43. This represents no noticeable deviation compared to its industry average Forward P/E of 26.43.
Also, we should mention that WM has a PEG ratio of 2.45. 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 2.23 as of yesterday's close.
The Waste Removal Services industry is part of the Business Services sector. With its current Zacks Industry Rank of 190, this industry ranks in the bottom 23% of all industries, numbering over 250.
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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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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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