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

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 Materials & Construction industry higher today making it today's featured materials & construction winner. The industry as a whole closed the day up 1.2%. By the end of trading, Waste Management rose $0.47 (1.1%) to $41.50 on light volume. Throughout the day, 1,342,246 shares of Waste Management exchanged hands as compared to its average daily volume of 2,377,400 shares. The stock ranged in a price between $41.04-$41.50 after having opened the day at $41.04 as compared to the previous trading day's close of $41.03. Other companies within the Materials & Construction industry that increased today were: MagneGas Corporation ( MNGA), up 11.2%, Comstock ( CHCI), up 11.1%, India Globalization Capital ( IGC), up 7.8% and Layne Christensen Company ( LAYN), up 5.0%.
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Waste Management, Inc. provides waste management services to residential, commercial, industrial, and municipal customers in North America. It offers collection, transfer, recycling and resource recovery, and disposal services. Waste Management has a market cap of $19.2 billion and is part of the industrial goods sector. The company has a P/E ratio of 23.5, above the S&P 500 P/E ratio of 17.7. Shares are up 21.6% year to date as of the close of trading on Monday. Currently there is 1 analyst that rates Waste Management a buy, no analysts rate it a sell, and 8 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 solid stock price performance. We feel these strengths outweigh the fact that the company shows low profit margins.

On the negative front, China Ceramics ( CCCL), down 9.1%, Tri-Tech ( TRIT), down 7.8%, Gafisa ( GFA), down 5.3% and Integrated Electrical Services ( IESC), down 3.8%.

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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