Waste Management Inc (WM): Today's Featured Industrial Goods Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Waste Management ( WM) pushed the Industrial Goods sector lower today making it today's featured Industrial Goods laggard. The sector as a whole closed the day up 0.3%. By the end of trading, Waste Management fell 45 cents (-1.4%) to $31.63 on average volume. Throughout the day, 4.6 million shares of Waste Management exchanged hands as compared to its average daily volume of 4.2 million shares. The stock ranged in price between $31.55-$32.12 after having opened the day at $32.07 as compared to the previous trading day's close of $32.08. Other companies within the Industrial Goods sector that declined today were: NACCO Industries ( NC), down 65.3%, China Valves Technology ( CVVT), down 49.5%, Tyco International ( TYC), down 49.3%, and Highpower International ( HPJ), down 5.7%.
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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 $14.84 billion and is part of the materials & construction industry. The company has a P/E ratio of 16.3, above the average materials & construction industry P/E ratio of 16.2 and below the S&P 500 P/E ratio of 17.7. Shares are down 1.9% year to date as of the close of trading on Friday. Currently there are no analysts that rate Waste Management a buy, three 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, reasonable valuation levels, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the positive front, Ceradyne ( CRDN), up 43.1%, Ballard Power Systems ( BLDP), up 21.2%, THT Heat Transfer Technology ( THTI), up 20.4%, and A123 Systems ( AONE), up 20%, were all gainers within the industrial goods sector with Textron ( TXT) being today's featured industrial goods sector leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the industrial goods sector could consider Industrial Select Sector SPDR ( XLI) while those bearish on the industrial goods sector could consider ProShares Short Dow 30 ( DOG).

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