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In the latest trading session, Waste Management (WM) closed at $237.76, marking a +0.26% move from the previous day. The stock trailed the S&P 500, which registered a daily gain of 0.4%. Elsewhere, the Dow saw an upswing of 0.28%, while the tech-heavy Nasdaq appreciated by 0.39%.
The garbage and recycling hauler's stock has climbed by 1.62% in the past month, falling short of the Business Services sector's gain of 7.08% and the S&P 500's gain of 6.69%.
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The upcoming earnings release of Waste Management will be of great interest to investors. On that day, Waste Management is projected to report earnings of $1.90 per share, which would represent year-over-year growth of 4.4%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.36 billion, up 17.8% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $7.58 per share and a revenue of $25.56 billion, indicating changes of +4.84% and +15.84%, respectively, from the former year.
Investors should also take note of any recent adjustments to analyst estimates for Waste Management. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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 varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.22% lower. At present, Waste Management boasts a Zacks Rank of #3 (Hold).
With respect to valuation, Waste Management is currently being traded at a Forward P/E ratio of 31.29. This expresses a premium compared to the average Forward P/E of 27.24 of its industry.
Also, we should mention that WM has a PEG ratio of 3.14. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. WM's industry had an average PEG ratio of 3.27 as of yesterday's close.
The Waste Removal Services industry is part of the Business Services sector. Currently, this industry holds a Zacks Industry Rank of 141, positioning it in the bottom 43% of all 250+ industries.