Waste Management (WM) Up 4% Since Last Earnings Report: Can It Continue?

Waste Management (WM) shares have increased by 4% since its last earnings report, underperforming the S&P 500, with analyst estimates remaining flat over the past month. The stock holds a Zacks Rank #3 (Hold), suggesting an expected in-line return in the coming months. In comparison, Pentair plc (PNR), another stock in the Waste Removal Services industry, has gained 10.5% over the past month, with an anticipated 9% increase in EPS for the current quarter.

Analysis

Waste Management (WM) shares have appreciated approximately 4% since its last earnings disclosure, a gain that lags the S&P 500's performance over the identical timeframe. Crucially, analyst earnings estimates for WM have remained unchanged in the past month, signaling a lack of upward revision momentum. The company currently holds a Zacks Rank #3 (Hold), suggesting expectations for an in-line market return over the next few months. WM's VGM Scores present a mixed profile: a favorable 'B' for Growth is contrasted by a weak 'F' for Momentum and a 'D' for Value, culminating in an overall VGM Score of 'C'. For comparison, Pentair plc (PNR), a peer in the Waste Removal Services industry, achieved a more significant 10.5% share price increase over the past month. Pentair's last reported quarterly revenue was $1.01 billion, a slight 0.7% year-over-year decrease, while its EPS rose to $1.11 from $0.94. Pentair projects a 9% EPS increase for the current quarter and also has a Zacks Rank #3 (Hold), but its overall VGM Score is an 'F'.

Key Decisions for Investors

• Given Waste Management's Zacks Rank #3 (Hold) and flat earnings estimate revisions, investors might consider maintaining current positions while awaiting fresh catalysts for potential upside.
• The stock's recent 4% gain underperforming the S&P 500, coupled with its weak Momentum (F) and Value (D) scores, warrants caution; closely monitor upcoming earnings for signs of fundamental improvement before considering new investments.
• Investors should assess if WM's 'B' Growth score can translate into stronger overall performance, especially as its current VGM score of 'C' and stagnant estimates suggest a need for careful evaluation against industry peers like Pentair, which has shown greater recent share price momentum despite also holding a 'Hold' rank.