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Waste Management (WM) Gains But Lags Market: What You Should Know

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In the latest trading session, Waste Management (WM) closed at $152.75, marking a +0.4% move from the previous day. This change lagged the S&P 500's 0.59% gain on the day. At the same time, the Dow added 0.15%, and the tech-heavy Nasdaq lost 0.02%.

Prior to today's trading, shares of the garbage and recycling hauler had gained 5.66% over the past month. This has lagged the Business Services sector's gain of 8.38% and the S&P 500's gain of 7.25% 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 July 27, 2022. On that day, Waste Management is projected to report earnings of $1.36 per share, which would represent year-over-year growth of 7.09%. Our most recent consensus estimate is calling for quarterly revenue of $4.84 billion, up 8.12% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.55 per share and revenue of $19.39 billion. These totals would mark changes of +14.67% and +8.13%, 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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

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 remained stagnant. Waste Management is holding a Zacks Rank of #3 (Hold) right now.

Investors should also note Waste Management's current valuation metrics, including its Forward P/E ratio of 27.42. For comparison, its industry has an average Forward P/E of 20.31, which means Waste Management is trading at a premium to the group.

Also, we should mention that WM has a PEG ratio of 2.52. 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 Waste Removal Services was holding an average PEG ratio of 2.52 at yesterday's closing price.

The Waste Removal Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 59, putting it in the top 24% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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