Waste Management (WM) Gains But Lags Market: What You Should Know
Waste Management (WM) closed the most recent trading day at $152.61, moving +0.07% from the previous trading session. This move lagged the S&P 500's daily gain of 0.25%. At the same time, the Dow added 0.08%, and the tech-heavy Nasdaq gained 7.26%.
Prior to today's trading, shares of the garbage and recycling hauler had lost 4.01% over the past month. This has lagged the Business Services sector's gain of 8.01% and the S&P 500's gain of 5.73% in that time.
Wall Street will be looking for positivity from Waste Management as it approaches its next earnings report date. This is expected to be February 1, 2023. The company is expected to report EPS of $1.41, up 11.9% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.98 billion, up 6.41% from the year-ago period.
Investors should also note any recent changes to analyst estimates for Waste Management. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 has moved 0.02% higher within the past month. Waste Management is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Waste Management has a Forward P/E ratio of 24.61 right now. This represents a premium compared to its industry's average Forward P/E of 22.26.
We can also see that WM currently has a PEG ratio of 1.96. 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 was holding an average PEG ratio of 2.15 at yesterday's closing price.
The Waste Removal Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 69, which puts it in the top 28% 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.
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