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In the latest trading session, Waste Management (WM) closed at $150.43, marking a -0.4% move from the previous day. This change was narrower than the S&P 500's daily loss of 0.45%. At the same time, the Dow lost 0.67%, and the tech-heavy Nasdaq lost 0.05%.
Heading into today, shares of the garbage and recycling hauler had gained 3.72% over the past month, outpacing the Business Services sector's loss of 1.77% and the S&P 500's loss of 1.89% 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%. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Waste Management is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that Waste Management has a Forward P/E ratio of 27.22 right now. Its industry sports an average Forward P/E of 18.47, so we one might conclude that Waste Management is trading at a premium comparatively.
It is also worth noting that WM currently has a PEG ratio of 2.51. 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. Waste Removal Services stocks are, on average, holding a PEG ratio of 2.51 based on yesterday's closing prices.
The Waste Removal Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 47, putting it in the top 19% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Waste Management, Inc. (WM) : Free Stock Analysis Report
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