Waste Management (WM) Sees a More Significant Dip Than Broader Market: Some Facts to Know

Zacks04-08

In the latest market close, Waste Management (WM) reached $216.47, with a -1.85% movement compared to the previous day. This change lagged the S&P 500's 1.57% loss on the day. On the other hand, the Dow registered a loss of 0.84%, and the technology-centric Nasdaq decreased by 2.15%.

Shares of the garbage and recycling hauler witnessed a loss of 3.17% over the previous month, beating the performance of the Business Services sector with its loss of 11.36% and the S&P 500's loss of 12.16%.

Investors will be eagerly watching for the performance of Waste Management in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on April 28, 2025. The company's earnings per share (EPS) are projected to be $1.68, reflecting a 4% decrease from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $6.12 billion, up 18.69% from the year-ago period.

For the full year, the Zacks Consensus Estimates project earnings of $7.63 per share and a revenue of $25.62 billion, demonstrating changes of +5.53% and +16.12%, respectively, from the preceding year.

Investors might also notice recent changes to analyst estimates for Waste Management. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. Within the past 30 days, our consensus EPS projection has moved 0.66% lower. As of now, Waste Management holds a Zacks Rank of #3 (Hold).

Looking at its valuation, Waste Management is holding a Forward P/E ratio of 28.92. This indicates a premium in contrast to its industry's Forward P/E of 24.24.

It is also worth noting that WM currently has a PEG ratio of 2.64. 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. As of the close of trade yesterday, the Waste Removal Services industry held an average PEG ratio of 2.24.

The Waste Removal Services industry is part of the Business Services sector. With its current Zacks Industry Rank of 171, this industry ranks in the bottom 32% of all industries, numbering over 250.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow WM in the coming trading sessions, be sure to utilize Zacks.com.

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This article originally published on Zacks Investment Research (zacks.com).

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