In the latest trading session, Waste Management (WM) closed at $235.54, marking a -4.45% move from the previous day. The stock fell short of the S&P 500, which registered a loss of 0.21% for the day. Meanwhile, the Dow lost 0.07%, and the Nasdaq, a tech-heavy index, added 0.01%.
The stock of garbage and recycling hauler has risen by 6.95% in the past month, leading the Business Services sector's loss of 1.13% and the S&P 500's loss of 2.26%.
The investment community will be paying close attention to the earnings performance of Waste Management in its upcoming release. The company's upcoming EPS is projected at $1.76, signifying a 5.39% increase compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $6.3 billion, indicating a 4.62% upward movement from the same quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $8.16 per share and a revenue of $26.5 billion, representing changes of +8.8% and +5.15%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Waste Management. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.14% higher within the past month. At present, Waste Management boasts a Zacks Rank of #3 (Hold).
Investors should also note Waste Management's current valuation metrics, including its Forward P/E ratio of 30.21. This signifies a premium in comparison to the average Forward P/E of 28.55 for its industry.
One should further note that WM currently holds a PEG ratio of 2.6. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Waste Removal Services stocks are, on average, holding a PEG ratio of 2.6 based on yesterday's closing prices.
The Waste Removal Services industry is part of the Business Services sector. This industry, currently bearing a Zacks Industry Rank of 186, finds itself in the bottom 25% echelons of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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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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