Waste Management Inc Stock Upgraded (WM)
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link. NEW YORK (TheStreet) -- Waste Management (NYSE:WM) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth, good cash flow from operations, growth in earnings per share and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.
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- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Commercial Services & Supplies industry average. The net income increased by 35.7% when compared to the same quarter one year prior, rising from $168.00 million to $228.00 million.
- Despite its growing revenue, the company underperformed as compared with the industry average of 4.8%. Since the same quarter one year prior, revenues slightly increased by 1.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
- WASTE MANAGEMENT INC has improved earnings per share by 36.1% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, WASTE MANAGEMENT INC reported lower earnings of $0.21 versus $1.76 in the prior year. This year, the market expects an improvement in earnings ($2.31 versus $0.21).
- Net operating cash flow has slightly increased to $584.00 million or 1.21% when compared to the same quarter last year. Despite an increase in cash flow, WASTE MANAGEMENT INC's average is still marginally south of the industry average growth rate of 10.36%.
- Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. The stock's price rise over the last year has driven it to a level which is somewhat expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
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