In the last trading session, Waste Management (WM) closed at $156.65, posting a -0.51% move from the day before. This change delayed the S&P 500’s gains by 0.08% on the day. Elsewhere, the Dow Jones lost 0.56%, while the big tech Nasdaq lost 0.42%.
As of today, trash carrier and recycling stock has lost 5.17% in the last month. At the same time, the business services sector lost 16.48%, while the S&P 500 rose 0.22%.
Waste Management will look to show strength as it approaches its next earnings release, which is expected to be February 2, 2022. In this report, analysts expect Waste Management to report earnings of $1.25 per share. This represents an annual growth of 10.62%. Meanwhile, our latest consensus estimate calls for revenue of $4.59 billion, an increase of 12.88% over the prior year quarter.
It is also important to note recent changes in analyst estimates of waste management. These recent reviews tend to reflect the evolving nature of short-term business trends. With this in mind, we can take the positive rating reviews as a sign of optimism about the company’s business outlook.
Our research shows that these discretionary changes are directly correlated with near-term stock prices. Investors can take advantage of this using Zacks Rank. This model takes into account these changes in grading and provides a simple and actionable rating system.
Ranging from #1 (strong buy) to #5 (strong sell), the Zacks Rank system has an externally audited track record of outperforming, returning the #1 stock an average of +25% per year since 1988. Zacks Consensus EPS estimate has decreased by 0.1% over the past month. Waste Management currently has a Zacks rating of 4 (for sale).
When researching the appraisal, Waste Management currently has a forward P/E ratio of 28.99. For comparison, its industry has an average P/E forward of 27.77, which means waste management is trading at a premium to the group.
It’s also worth noting that WM currently has a PEG ratio of 2.31. This common metric is similar to the widely known price-earnings (P/E) ratio, with the difference that the PEG ratio also takes into account the company’s expected earnings growth rate. The waste removal services industry currently has an average PEG rate of 2.59 as of yesterday’s close.
The waste removal services industry is part of the business services sector. This group has a Zacks Industry Rating of 94, placing it in the top 37% of all 250+ industries.
Zacks Industry Ranking measures the strength of our industry groups by measuring the average Zacks rating of the individual stocks within the groups. Our research shows that industries ranked 50% outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to keep track of all these stock movement metrics and more in upcoming trading sessions.
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Waste Management, Inc. (WM): Free Stock Analysis Report
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