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Waste Management (WM) Gains As Market Dips: What You Should Know

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Waste Management (WM) closed the most recent trading day at $158.53, moving +0.01% from the previous trading session. This change outpaced the S&P 500's 0.75% loss on the day. Elsewhere, the Dow lost 0.54%, while the tech-heavy Nasdaq added 0.24%.

Coming into today, shares of the garbage and recycling hauler had lost 0.51% in the past month. In that same time, the Business Services sector lost 2.39%, while the S&P 500 gained 0.32%.

Investors will be hoping for strength from Waste Management as it approaches its next earnings release. The company is expected to report EPS of $1.37, up 7.87% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales 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.

It is also important to note the recent changes to analyst estimates for Waste Management. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. 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 28.57. This valuation marks a premium compared to its industry's average Forward P/E of 21.06.

Investors should also note that WM has a PEG ratio of 2.63 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. The Waste Removal Services industry currently had an average PEG ratio of 2.63 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 84, which puts it in the top 34% 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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