Waste Management (WM) Stock Sinks As Market Gains: What You Should Know
Waste Management (WM) closed the most recent trading day at $153.58, moving -0.57% from the previous trading session. This change lagged the S&P 500's 0.17% gain on the day. At the same time, the Dow added 0.6%, and the tech-heavy Nasdaq gained 0.67%.
Heading into today, shares of the garbage and recycling hauler had gained 2.08% over the past month, outpacing the Business Services sector's loss of 1.93% and the S&P 500's gain of 0.25% in that time.
Waste Management will be looking to display strength as it nears its next earnings release, which is expected to be April 26, 2023. On that day, Waste Management is projected to report earnings of $1.29 per share, which would represent no growth from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $4.87 billion, up 4.4% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.04 per share and revenue of $20.63 billion. These totals would mark changes of +8.05% and +4.75%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Waste Management. These revisions help to show the ever-changing nature of near-term business trends. 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 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 25.55 right now. This represents a premium compared to its industry's average Forward P/E of 21.67.
Meanwhile, WM's PEG ratio is currently 2.35. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Waste Removal Services was holding an average PEG ratio of 2.56 at yesterday's closing price.
The Waste Removal Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 190, which puts it in the bottom 25% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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