In the latest close session, Waste Management (WM) was up +2.17% at $218.09. The stock's change was more than the S&P 500's daily loss of 0.48%. Elsewhere, the Dow lost 0.29%, while the tech-heavy Nasdaq lost 0.56%.
Shares of the garbage and recycling hauler witnessed a loss of 4.94% over the previous month, trailing the performance of the Business Services sector with its loss of 2.87%, and the S&P 500's loss of 0.82%.
Market participants will be closely following the financial results of Waste Management in its upcoming release. The company is forecasted to report an EPS of $2.18, showcasing a 10.1% upward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $6.79 billion, indicating a 5.34% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $8.13 per share and revenue of $26.35 billion, which would represent changes of +8.4% and +4.54%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Waste Management. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Over the past month, the Zacks Consensus EPS estimate has shifted 0.11% downward. Waste Management is currently a Zacks Rank #3 (Hold).
With respect to valuation, Waste Management is currently being traded at a Forward P/E ratio of 26.26. This indicates a premium in contrast to its industry's Forward P/E of 25.84.
It's also important to note that WM currently trades at a PEG ratio of 2.69. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Waste Removal Services stocks are, on average, holding a PEG ratio of 2.68 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 104, finds itself in the top 43% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Waste Management, Inc. (WM): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).