Waste Management on Tuesday topped a 230.39 buy point in a cup base. It also rose to an all-time intraday high 232.44. The breakout comes despite the current overall market correction.
The Houston-based company sports an 84 EPS Rating out of a best-possible 99. Its Composite Rating is a bit higher, at 87, near a benchmark. The Composite score combines five separate proprietary ratings into one. The best growth stocks have a Composite Rating of 90 or better.
Waste Management Stock Popular With Funds
Additionally, Waste Management has a B- Accumulation/Distribution Rating, showing that over the past 13 weeks funds have been moderately heavy buyers of its stock. On Tuesday, the company's IBD Relative Strength (RS) Rating got an upgrade from 70 to 75 — a welcome improvement, but still short of the 80 or better score The IBD Methodology investors look for.
Can You Really Time The Stock Market?
Waste Management provides waste collection, disposal and recycling services in the U.S. and Canada. The company says on its website "Our leadership serves with a focus on maximizing resource value while minimizing environmental impact so that both our economy and environment can thrive."
Watchlist candidate Waste Management's stock is still within a buy range after moving past the cup without handle buy point. The buy range extends to 5% above the purchase price, to 241.91.
Among Top 5 In Industry Group
Waste Management's sales growth rate increased every quarter this past year, rising from 5% to 6%, 8% then 13% last quarter, to $5.89 billion. Analyst consensus is for its revenue growth rate to rise again this quarter, to 19%, according to FactSet.
Earnings growth was strong until the most recent quarter. The company posted quarterly EPS growth this past year of 34%, 21% and 20%, then it dipped 2% last quarter to $1.70 per share. Analyst consensus is for EPS to dip 3% this quarter before returning to growth in Q2.
Waste Management earns the No. 4 rank among its peers in the 35-stock Pollution-Control industry group. Aris Water Solutions is the No. 1-ranked stock within the group.
IBD's unique Relative Strength Rating identifies market leadership by showing how a stock's price action over the last 52 weeks measures up against that of the other stocks in the IBD database. The best stocks tend to have an RS Rating north of 80 in the early stages of their moves. See if Waste Management can continue to show renewed price strength and hit that benchmark.
Please follow James DeTar on Twitter @JimDeTar
RELATED:
Which Stocks Are Showing Rising Relative Strength?
Why Should You Use IBD's Relative Strength Rating?
Get Timely Buy & Sell Alerts With IBD Leaderboard
IBD Live: A Great Tool For Daily Stock Market Analysis
Ready To Grow Your Investing Skills? Join An IBD Meetup Group!
