Waste Management (WM) Gains As Market Dips: What You Should Know
Waste Management (WM) closed at $153.11 in the latest trading session, marking a +0.55% move from the prior day. This change outpaced the S&P 500's 0.02% loss on the day. Elsewhere, the Dow gained 0.03%, while the tech-heavy Nasdaq added 5.44%.
Coming into today, shares of the garbage and recycling hauler had lost 4.53% in the past month. In that same time, the Business Services sector gained 7.78%, while the S&P 500 gained 4.57%.
Investors will be hoping for strength from Waste Management as it approaches its next earnings release, which is expected to be February 1, 2023. On that day, Waste Management is projected to report earnings of $1.42 per share, which would represent year-over-year growth of 12.7%. Meanwhile, our latest consensus estimate is calling for revenue of $4.98 billion, up 6.41% from the prior-year quarter.
Any recent changes to analyst estimates for Waste Management should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. 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. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating 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 holding a Zacks Rank of #3 (Hold) right now.
Investors should also note Waste Management's current valuation metrics, including its Forward P/E ratio of 24.57. For comparison, its industry has an average Forward P/E of 22.41, which means Waste Management is trading at a premium to the group.
Investors should also note that WM has a PEG ratio of 1.96 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. WM's industry had an average PEG ratio of 2.14 as of yesterday's close.
The Waste Removal Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 92, which puts it in the top 37% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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