Waste Management (WM) Stock Moves -1.5%: What You Should Know

This story originally appeared on Zacks

In the last trading session, Waste Management (WM) closed at $161.84, recording a move of -1.5% from the day before. This move was narrower than the S&P 500’s daily loss of 1.94%. Meanwhile, the Dow Jones lost 1.07%, and the tech-heavy Nasdaq lost 0.39%.

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Before today’s trading, shares of the garbage carrier and recycling company are up 0.03% over the past month. This outpaced the Business Services sector’s loss of 8.97% and retarded the S&P 500’s gain of 5.72% in that time.

Waste Management will be looking to show strength as it nears its next earnings release. On that day, Waste Management is expected to report earnings of $1.25 per share, which represents 10.62% year-over-year growth. Meanwhile, Zacks revenue estimates forecast net sales of $4.57 billion, an increase of 12.48% over the same period last year.

Investors should also note any recent changes to analysts’ estimates of waste management. These reviews help show the ever-changing nature of near-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.

Research indicates that these discretionary revisions are directly related to the stock’s near-term price momentum. 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.

The Zacks Rank system ranges from #1 (strong buy) to #5 (strong sell). The company has a successful track record, subject to external scrutiny, with the No. 1 stock having generated an average annual return of over 25% since 1988. In the past 30 days, the combined EPS forecast is down 0.12%. Waste management is currently a Zacks #4 (sell) rating.

When researching evaluation, Waste Management currently has a forward P/E ratio of 30.22. This is a premium over the industry’s forward P/E average of 28.1.

It’s also worth noting that WM currently has a PEG ratio of 2.41. The price-earnings-growth (PEG) ratio is similar to the widely used price-to-earnings (P/E) ratio, but this metric also takes into account a company’s expected earnings growth rate. Waste removal services have, on average, a PEG of 2.71 based on yesterday’s closing prices.

The waste removal services industry is part of the business services sector. This group has a Zacks Industry Rating of 105, placing it in the top 42% of all 250+ industries.

The Zacks Industry Ranking measures the strength of our individual 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.

You can find more information about all of these metrics and more at Zacks.com.

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