Waste Management (WM) closed the most recent trading day at $113.87, moving +1.76% from the previous trading session. This change outpaced the S&P 500's 0.26% gain on the day. Meanwhile, the Dow gained 0.13%, and the Nasdaq, a tech-heavy index, added 0.4%.
Heading into today, shares of the garbage and recycling hauler had lost 6.77% over the past month, lagging the Business Services sector's loss of 0.37% and the S&P 500's gain of 3.92% in that time.
Wall Street will be looking for positivity from WM as it approaches its next earnings report date. In that report, analysts expect WM to post earnings of $1.15 per share. This would mark no growth from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $4 billion, up 4.58% from the year-ago period.
WM's full-year Zacks Consensus Estimates are calling for earnings of $4.33 per share and revenue of $15.63 billion. These results would represent year-over-year changes of +3.1% and +4.81%, respectively.
It is also important to note the recent changes to analyst estimates for WM. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. WM is currently sporting a Zacks Rank of #2 (Buy).
Looking at its valuation, WM is holding a Forward P/E ratio of 25.86. This valuation marks a discount compared to its industry's average Forward P/E of 27.73.
It is also worth noting that WM currently has a PEG ratio of 3.02. 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 2.9 as of yesterday's close.
The Waste Removal Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 53, putting it in the top 21% 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.
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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