Yahoo Finance Waste Management (WM) Stock Declines While Market Improves: Some Information for Investors
In the latest market close, Waste Management (WM) reached $212.06, with a -0.18% movement compared to the previous day. This change lagged the S&P 500's 0.09% gain on the day. Elsewhere, the Dow lost 0.1%, while the tech-heavy Nasdaq added 0.16%.
Shares of the garbage and recycling hauler witnessed a gain of 1.74% over the previous month, beating the performance of the Business Services sector with its gain of 1.04% and underperforming the S&P 500's gain of 2.83%.
The investment community will be closely monitoring the performance of Waste Management in its forthcoming earnings report. It is anticipated that the company will report an EPS of $1.81, marking a 19.87% rise compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $5.41 billion, up 5.7% from the prior-year quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $7.31 per share and a revenue of $21.55 billion, indicating changes of +18.09% and +5.48%, respectively, from the former year.
It is also important to note the recent changes to analyst estimates for Waste Management. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
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. The Zacks Consensus EPS estimate has moved 0.03% lower within the past month. Waste Management presently features a Zacks Rank of #3 (Hold).
From a valuation perspective, Waste Management is currently exchanging hands at a Forward P/E ratio of 29.07. Its industry sports an average Forward P/E of 29.8, so one might conclude that Waste Management is trading at a discount comparatively.
Also, we should mention that WM has a PEG ratio of 2.47. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. WM's industry had an average PEG ratio of 2.64 as of yesterday's close.
The Waste Removal Services industry is part of the Business Services sector. This industry, currently bearing a Zacks Industry Rank of 200, finds itself in the bottom 21% echelons of all 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Waste Management, Inc. (WM) : Free Stock Analysis Report
