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Waste Management (WM) closed at $224.21 in the latest trading session, marking a -1.56% move from the prior day. The stock fell short of the S&P 500, which registered a loss of 0.76% for the day. Meanwhile, the Dow experienced a drop of 1.14%, and the technology-dominated Nasdaq saw a decrease of 0.18%.
Coming into today, shares of the garbage and recycling hauler had gained 0.74% in the past month. In that same time, the Business Services sector lost 9.99%, while the S&P 500 lost 7.29%.
Market participants will be closely following the financial results of Waste Management in its upcoming release. The company is forecasted to report an EPS of $1.69, showcasing a 3.43% downward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $6.14 billion, indicating a 19.03% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $7.68 per share and revenue of $25.63 billion, which would represent changes of +6.22% and +16.16%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Waste Management. Such recent modifications usually signify the changing landscape 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been a 0.35% fall in the Zacks Consensus EPS estimate. Currently, Waste Management is carrying a Zacks Rank of #3 (Hold).
Looking at valuation, Waste Management is presently trading at a Forward P/E ratio of 29.67. This indicates a premium in contrast to its industry's Forward P/E of 26.18.
We can additionally observe that WM currently boasts a PEG ratio of 2.71. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Waste Removal Services stocks are, on average, holding a PEG ratio of 2.51 based on yesterday's closing prices.