Waste Management Shows Positive EPS Forecast Amid Challenges

In a recent report, Waste Management's stock price reached $208.46, a gain of +1.82%, surpassing broader market indexes. Anticipated earnings of $1.86 per share indicate a robust growth trajectory, while revenue is expected to rise to $5.5 billion, reflecting investor optimism ahead of the earnings disclosure.

Date: 10-09-2024

AI Rating: 7

In the latest report, Waste Management (WM) has demonstrated a slight increase in stock value, closing at $208.46 with a percentage change of +1.82%. This performance outpaced the broader market, including the S&P 500, which recorded a gain of 1.16%. Such positive movement, however, comes against a backdrop where WM had seen a slight dip of 0.26% over the past month, while the Business Services sector overall gained 5.19%.

Investors are notably anticipating the upcoming earnings report from Waste Management. Analysts project an earnings per share (EPS) of $1.86, which marks a significant increase of 14.11% compared to the same quarter from the previous year. The consensus estimate for quarterly revenue is forecasted to be $5.5 billion, reflecting a year-over-year increase of 5.82%.

Additionally, the full-year consensus estimates forecast an EPS of $7.24 and a total revenue of $21.54 billion, illustrating year-over-year increases of 16.96% and 5.46%, respectively. These strong projections for both EPS and revenue suggest that Waste Management is positioned for growth, which is encouraging for potential and existing investors.

The report also highlighted that the Zacks Consensus EPS estimates have remained stable over the last month. This lack of change, while indicating slow variability, may reflect analysts' confidence in the current business performance and future profit potential, even despite the stock's recent performance lag compared to the sector.

Furthermore, Waste Management's current Forward P/E ratio stands at 28.28, which is on par with the industry average, suggesting that the stock is fairly valued relative to its peers. Additionally, the PEG ratio, a metric that accounts for expected earnings growth rate, is recorded at 2.29, again showing relative strength compared to the industry average of 2.67.

Given that the Waste Management sector holds a Zacks Industry Rank of 207, placing it in the bottom 19% of all industries, investors may take this into account when assessing the stock’s potential long-term growth in a competitive landscape.

Stocks: WM