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Waste Management (WM) closed at $203.80 in the latest trading session, marking a -0.99% move from the prior day. The stock's change was less than the S&P 500's daily gain of 0.73%. At the same time, the Dow added 0.16%, and the tech-heavy Nasdaq gained 0.98%.
The garbage and recycling hauler's shares have seen a decrease of 8.28% over the last month, not keeping up with the Business Services sector's gain of 0.33% and the S&P 500's gain of 0.34%.
Market participants will be closely following the financial results of Waste Management in its upcoming release. The company plans to announce its earnings on January 29, 2025. The company is expected to report EPS of $1.80, up 3.45% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $5.89 billion, indicating a 12.86% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $7.32 per share and revenue of $22.06 billion, which would represent changes of +18.26% and +7.99%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Waste Management. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
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, there's been a 0.03% fall in the Zacks Consensus EPS estimate. At present, Waste Management boasts a Zacks Rank of #3 (Hold).
Digging into valuation, Waste Management currently has a Forward P/E ratio of 28.12. This signifies no noticeable deviation in comparison to the average Forward P/E of 28.12 for its industry.
We can additionally observe that WM currently boasts a PEG ratio of 2.28. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Waste Removal Services was holding an average PEG ratio of 2.6 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 197, which puts it in the bottom 22% of all 250+ industries.