In the latest trading session, Waste Management (WM) closed at $119.09, marking a -1.29% move from the previous day. This change lagged the S&P 500's daily gain of 1.3%. Elsewhere, the Dow gained 1.41%, while the tech-heavy Nasdaq added 1.75%.
Coming into today, shares of the garbage and recycling hauler had gained 3.25% in the past month. In that same time, the Business Services sector gained 1.91%, while the S&P 500 gained 0.46%.
WM will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.15, unchanged from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4 billion, up 4.58% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.33 per share and revenue of $15.63 billion. These totals would mark changes of +3.1% and +4.81%, respectively, from last year.
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. 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.
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 has moved 0.15% higher. WM is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, WM is holding a Forward P/E ratio of 27.89. This valuation marks a premium compared to its industry's average Forward P/E of 27.68.
Also, we should mention that WM has a PEG ratio of 3.26. 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 was holding an average PEG ratio of 3.06 at yesterday's closing price.
The Waste Removal Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 72, putting it in the top 29% 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.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Waste Management, Inc. (WM) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research