Trade-Ideas LLC identified

Waste Management

(

WM

) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Waste Management as such a stock due to the following factors:

  • WM has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $163.6 million.
  • WM has traded 27,792 shares today.
  • WM is trading at a new lifetime high.

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More details on WM:

Waste Management, Inc., through its subsidiaries, provides waste management environmental services to residential, commercial, industrial, and municipal customers in North America. The stock currently has a dividend yield of 2.8%. WM has a PE ratio of 36. Currently there are 4 analysts that rate Waste Management a buy, no analysts rate it a sell, and 7 rate it a hold.

The average volume for Waste Management has been 2.4 million shares per day over the past 30 days. Waste Management has a market cap of $26.1 billion and is part of the industrial goods sector and materials & construction industry. The stock has a beta of 0.75 and a short float of 2.4% with 4.24 days to cover. Shares are up 10.4% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Waste Management as a

buy

. The company's strengths can be seen in multiple areas, such as its expanding profit margins, good cash flow from operations and solid stock price performance. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:

  • 38.26% is the gross profit margin for WASTE MANAGEMENT INC which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 8.41% is above that of the industry average.
  • Net operating cash flow has slightly increased to $526.00 million or 1.15% when compared to the same quarter last year. In addition, WASTE MANAGEMENT INC has also modestly surpassed the industry average cash flow growth rate of 1.07%.
  • WASTE MANAGEMENT INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, WASTE MANAGEMENT INC reported lower earnings of $1.67 versus $2.80 in the prior year. This year, the market expects an improvement in earnings ($2.78 versus $1.67).
  • WM, with its decline in revenue, slightly underperformed the industry average of 2.0%. Since the same quarter one year prior, revenues slightly dropped by 5.5%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period, despite the company's weak earnings results. 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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