Waste Management (WM) Dips More Than Broader Markets: What You Should Know
Waste Management (WM) closed at $159.28 in the latest trading session, marking a -1.37% move from the prior day. This change lagged the S&P 500's daily loss of 0.8%. At the same time, the Dow lost 0.3%, and the tech-heavy Nasdaq lost 0.03%.
Prior to today's trading, shares of the garbage and recycling hauler had lost 4.38% over the past month. This has was narrower than the Business Services sector's loss of 8.94% and the S&P 500's loss of 5.13% in that time.
Wall Street will be looking for positivity from Waste Management as it approaches its next earnings report date. This is expected to be October 26, 2022. On that day, Waste Management is projected to report earnings of $1.50 per share, which would represent year-over-year growth of 19.05%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.04 billion, up 8.05% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.69 per share and revenue of $19.73 billion. These totals would mark changes of +17.56% and +10.05%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Waste Management. These revisions typically reflect the latest short-term business trends, which can change frequently. 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 0.21% lower within the past month. Waste Management currently has a Zacks Rank of #4 (Sell).
Looking at its valuation, Waste Management is holding a Forward P/E ratio of 28.38. Its industry sports an average Forward P/E of 17.15, so we one might conclude that Waste Management is trading at a premium comparatively.
Investors should also note that WM has a PEG ratio of 2.08 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 2.08 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 67, which puts it in the top 27% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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
