Waste Management's EPS Growth and Revenue Insights Ahead

In its latest report, Waste Management shows promise with upcoming earnings expected to reveal a 14.11% increase in year-over-year EPS. Revenue projections also stand at $5.5 billion with a 5.82% growth. Investors should monitor these figures closely as they could significantly impact stock performance.

Date: 02-10-2024

AI Rating: 7

Waste Management (WM) recently closed at $207.93, reflecting a slight gain of +0.16%, which is an outperformance compared to the S&P 500 that lost 0.93%. However, shares show a month-to-month decline of 2.09%, trailing both the Business Services sector (1.6%) and the S&P 500 (2.17%).

Looking ahead, Waste Management is due to report earnings on October 28, 2024, with an Earnings Per Share (EPS) projected at $1.86. This would signify a year-over-year growth of 14.11%. Additionally, the company expects to generate $5.5 billion in revenue, which marks a 5.82% increase compared to the same quarter last year. These estimates suggest a robust outlook, particularly in earnings growth.

For the full year, the consensus forecast anticipates annual EPS of $7.24, a 16.96% increase from the previous year, alongside total revenue projections of $21.54 billion, reflecting a 5.46% growth. Positive changes in analyst estimates often correlate with favorable stock performance, and with the Zacks Consensus Estimates reporting no changes over the last 30 days, this stability might instill confidence among investors.

The current Zacks Rank designation of #3 (Hold) may indicate that while the forecast is stable, there is not overwhelming bullish sentiment driving the holdings. Investors should also take note of the Forward P/E ratio of Waste Management, currently at 28.68, which exceeds the industry average of 27.17, indicating a premium valuation in the market. Furthermore, the PEG ratio stands at 2.32, which is favorable relative to the industry's average of 2.88.

Although the Waste Removal Services industry is in the lower tier (173 out of over 250 sectors) according to the Zacks Industry Rank, this position within the lower 32% might suggest underlying industry headwinds despite individual company growth potential. Combined, these factors illustrate that while current figures reveal growth potential in Waste Management’s operations, the competitive industry landscape and premium valuation could contribute to stock price volatility.

Stocks: WM