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Waste Management (WM) Gains But Lags Market: What You Should Know
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Waste Management (WM - Free Report) closed at $155.17 in the latest trading session, marking a +0.47% move from the prior day. This move lagged the S&P 500's daily gain of 2.14%. Elsewhere, the Dow gained 1.82%, while the tech-heavy Nasdaq added 0.12%.
Prior to today's trading, shares of the garbage and recycling hauler had gained 8.94% over the past month. This has outpaced the Business Services sector's loss of 10.46% and the S&P 500's loss of 5.01% in that time.
Investors will be hoping for strength from Waste Management as it approaches its next earnings release. In that report, analysts expect Waste Management to post earnings of $1.12 per share. This would mark year-over-year growth of 5.66%. Meanwhile, our latest consensus estimate is calling for revenue of $4.45 billion, up 8.14% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.38 per share and revenue of $19.03 billion. These totals would mark changes of +11.16% and +6.1%, respectively, from last year.
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 such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
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 moved 0.29% higher. Waste Management is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Waste Management is currently trading at a Forward P/E ratio of 28.73. For comparison, its industry has an average Forward P/E of 25.83, which means Waste Management is trading at a premium to the group.
Investors should also note that WM has a PEG ratio of 2.61 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. WM's industry had an average PEG ratio of 2.82 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 180, which puts it in the bottom 30% 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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Waste Management (WM) Gains But Lags Market: What You Should Know
Waste Management (WM - Free Report) closed at $155.17 in the latest trading session, marking a +0.47% move from the prior day. This move lagged the S&P 500's daily gain of 2.14%. Elsewhere, the Dow gained 1.82%, while the tech-heavy Nasdaq added 0.12%.
Prior to today's trading, shares of the garbage and recycling hauler had gained 8.94% over the past month. This has outpaced the Business Services sector's loss of 10.46% and the S&P 500's loss of 5.01% in that time.
Investors will be hoping for strength from Waste Management as it approaches its next earnings release. In that report, analysts expect Waste Management to post earnings of $1.12 per share. This would mark year-over-year growth of 5.66%. Meanwhile, our latest consensus estimate is calling for revenue of $4.45 billion, up 8.14% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.38 per share and revenue of $19.03 billion. These totals would mark changes of +11.16% and +6.1%, respectively, from last year.
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 such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
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 moved 0.29% higher. Waste Management is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Waste Management is currently trading at a Forward P/E ratio of 28.73. For comparison, its industry has an average Forward P/E of 25.83, which means Waste Management is trading at a premium to the group.
Investors should also note that WM has a PEG ratio of 2.61 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. WM's industry had an average PEG ratio of 2.82 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 180, which puts it in the bottom 30% 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.