Waste Management Inc (WM): Today's Featured Materials & Construction Loser

Waste Management ( WM) pushed the Materials & Construction industry lower today making it today's featured Materials & Construction loser. The industry as a whole closed the day up 1.7%. By the end of trading, Waste Management fell 79 cents (-2.2%) to $35.29 on heavy volume. Throughout the day, 4.9 million shares of Waste Management exchanged hands as compared to its average daily volume of 2.5 million shares. The stock ranged in price between $34.98-$35.81 after having opened the day at $35.55 as compared to the previous trading day's close of $36.08. Other company's within the Materials & Construction industry that declined today were: LSB Industries ( LXU), down 9.5%, Energy Solutions ( ES), down 3%, Tri-Tech ( TRIT), down 2.8%, and Primoris Services ( PRIM), down 2%.

Waste Management, Inc., through its subsidiaries, provides waste management services to residential, commercial, industrial, and municipal customers in North America. It offers collection, transfer, recycling, and disposal services. Waste Management has a market cap of $16.65 billion and is part of the industrial goods sector. The company has a P/E ratio of 17.7, above the average materials & construction industry P/E ratio of 17.6 and equal to the S&P 500 P/E ratio of 17.7. Shares are up 10% year to date as of the close of trading on Wednesday. Currently there are no analysts that rate Waste Management a buy, two analysts rate it a sell, and six rate it a hold.

TheStreet Ratings rates Waste Management as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, attractive valuation levels, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had generally poor debt management on most measures that we evaluated.

On the positive front, Patrick Industries ( PATK), up 28%, Nobility Homes ( NOBH), up 17.3%, Ryland Group ( RYL), up 14.1%, and Beazer Homes USA ( BZH), up 9.2%, were all gainers within the materials & construction industry with PulteGroup ( PHM) being today's featured materials & construction industry winner.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the materials & construction industry could consider SPDR S&P Homebuilders ETF ( XHB) while those bearish on the materials & construction industry could consider ProShares Short Basic Materials Fd ( SBM).
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