Waste Management (WM) closed at $121.70 in the latest trading session, marking a -0.86% move from the prior day. This change was narrower than the S&P 500's 1.77% loss on the day. At the same time, the Dow lost 2.09%, and the tech-heavy Nasdaq lost 1.59%.
Heading into today, shares of the garbage and recycling hauler had gained 7.48% over the past month, outpacing the Business Services sector's gain of 3.96% and the S&P 500's gain of 2.04% in that time.
Investors will be hoping for strength from WM as it approaches its next earnings release, which is expected to be February 13, 2020. The company is expected to report EPS of $1.16, up 2.65% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $3.95 billion, up 2.82% from the prior-year quarter.
Investors might also notice recent changes to analyst estimates for WM. Recent revisions tend to reflect the latest near-term business trends. 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.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.15% higher. WM is currently sporting a Zacks Rank of #2 (Buy).
Investors should also note WM's current valuation metrics, including its Forward P/E ratio of 26.33. For comparison, its industry has an average Forward P/E of 30.88, which means WM is trading at a discount to the group.
It is also worth noting that WM currently has a PEG ratio of 3.19. 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. Waste Removal Services stocks are, on average, holding a PEG ratio of 3.23 based on yesterday's closing prices.
The Waste Removal Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 69, which puts it in the top 28% 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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