Waste Management, Inc. (WM Quick QuoteWM - Free Report) has had an impressive run over the past month. The stock has gained 6.3%, outperforming the 2.9% rise of the industry it belongs to and the 4.3% growth of the Zacks S&P 500 composite.

Let’s delve into the factors that have contributed to the company’s performance.

Earnings and Revenue Surprise

Waste Management has an impressive earnings surprise history, with earnings surpassing the Zacks Consensus Estimate in three of the four trailing quarters and missing once, with an average surprise of 1.6%. Except for the last quarter, WM beat the revenue and earnings estimates in all three previous quarters. The better-than-expected results are supported by solid waste business, strong organic growth and strong cost control.

Year-Over-Year Increase in Earnings and Revenues

The company’s earnings and revenues grew year over year in the four trailing quarters. In the first quarter of 2023, it reported earnings of $1.31, indicating a 1.6% increase from the year-ago reported figure. Revenues for the quarter came in at $3.37 billion, which increased 9.4% year over year.

The Zacks Consensus Estimate for 2023 earnings is pegged at $6.03, indicating 7.9% year-over-year growth. The consensus estimate for 2023 revenues is pegged at $20.64 billion, indicating a 4.8% increase year over year.

Consistent Dividend Payer

Waste Management has a consistent record of rewarding its shareholders through dividends and share repurchases. In 2022, 2021 and 2020, the company repurchased shares worth $1.5 billion, $1.4 billion and $402 million, respectively. It paid $1.1 billion, $970 million and $927 million in dividends during 2022, 2021 and 2020, respectively. Such moves indicate WM’s commitment to boosting shareholders’ value and underline its confidence in its business.

Zacks Rank and Stocks to Consider

Waste Management currently carries a Zacks Rank #3 (Hold).

Investors interested in the Zacks Business Services sector can consider the following better-ranked stocks:

Maximus (MMS Quick QuoteMMS - Free Report) : MMS sports a Zacks Rank of 1 (Strong Buy) at present and has a VGM Score of B. You can see the complete list of today’s Zacks #1 Rank stocks here.

The company has an impressive earnings surprise history, beating the consensus mark in three of the trailing four quarters and missing once, the average surprise being 9.6%.

Green Dot (GDOT Quick QuoteGDOT - Free Report) : GDOT currently carries a Zacks Rank #2 (Buy) and has a VGM Score of A.

The company has an impressive earnings surprise history, beating the Zacks Consensus Estimate in all the trailing four quarters, with an average surprise of 37.3%.