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In the latest trading session, Waste Management (WM) closed at $151.07, marking a +0.43% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.3%. At the same time, the Dow lost 0.46%, and the tech-heavy Nasdaq lost 0.28%.
Prior to today's trading, shares of the garbage and recycling hauler had gained 3.45% over the past month. This has outpaced the Business Services sector's gain of 2.26% and the S&P 500's gain of 1.51% 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. In that report, analysts expect Waste Management to post earnings of $1.36 per share. This would mark year-over-year growth of 7.09%. 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.
Any recent changes to analyst estimates for Waste Management should also be noted by investors. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Waste Management is holding a Forward P/E ratio of 27.11. This represents a premium compared to its industry's average Forward P/E of 18.68.
It is also worth noting that WM currently has a PEG ratio of 2.5. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Waste Removal Services industry currently had an average PEG ratio of 2.5 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 57, which puts it in the top 23% 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.
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