Advertisement
Australia markets closed
  • ALL ORDS

    8,205.50
    -3.10 (-0.04%)
     
  • AUD/USD

    0.6598
    -0.0021 (-0.32%)
     
  • ASX 200

    7,963.70
    -7.40 (-0.09%)
     
  • OIL

    77.49
    +0.53 (+0.69%)
     
  • GOLD

    2,414.80
    +7.50 (+0.31%)
     
  • Bitcoin AUD

    100,769.65
    -587.66 (-0.58%)
     
  • CMC Crypto 200

    1,369.32
    +3.43 (+0.25%)
     

Waste Management (WM) Outperforms Broader Market: What You Need to Know

Waste Management (WM) closed at $201.71 in the latest trading session, marking a +0.58% move from the prior day. The stock's performance was ahead of the S&P 500's daily gain of 0.26%. At the same time, the Dow added 0.18%, and the tech-heavy Nasdaq gained 0.35%.

The garbage and recycling hauler's shares have seen a decrease of 5.17% over the last month, not keeping up with the Business Services sector's loss of 0.47% and the S&P 500's gain of 3.25%.

Investors will be eagerly watching for the performance of Waste Management in its upcoming earnings disclosure. The company is predicted to post an EPS of $1.81, indicating a 19.87% growth compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $5.41 billion, reflecting a 5.7% rise from the equivalent quarter last year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $7.31 per share and revenue of $21.55 billion, indicating changes of +18.09% and +5.49%, respectively, compared to the previous year.

ADVERTISEMENT

Investors should also pay attention to any latest changes in analyst estimates for Waste Management. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 last 30 days, the Zacks Consensus EPS estimate has moved 0.7% higher. Right now, Waste Management possesses a Zacks Rank of #3 (Hold).

Looking at valuation, Waste Management is presently trading at a Forward P/E ratio of 27.44. For comparison, its industry has an average Forward P/E of 28.04, which means Waste Management is trading at a discount to the group.

Investors should also note that WM has a PEG ratio of 2.33 right now. 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 average PEG ratio for the Waste Removal Services industry stood at 2.49 at the close of the market yesterday.

The Waste Removal Services industry is part of the Business Services sector. At present, this industry carries a Zacks Industry Rank of 141, placing it within the bottom 45% of over 250 industries.

The Zacks Industry Rank gauges the strength of our individual 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Waste Management, Inc. (WM) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research