Waste Management (WM, $104.46) to buy Advanced Disposal Services (ADSW, $32.28) for $4.9 billion
Waste Management is set to buy rival Advanced Disposal Services.
The deal, worth $4.9 billion including debt, will have the waste management & environment services company paying $33.15 a share in cash for Advanced Disposal. According to the Wall Street Journal (WSJ), the acquisition is Waste Management's biggest till date.
Business Wire reports that more than $100 Million of projected annual cost and capital expenditure synergies are expected to in a post-Synergy transaction multiple well below Waste Management's current trading multiple.
Advanced Disposal is partly owned by the Canada Pension Plan Investment Board, which has agreed to vote for the deal, according to WSJ. Advanced Disposal caters to around 2.8 million residential customers and 200,000 commercial customers.
WM in upward trend: 10-day moving average broke above 50-day moving average on October 02, 2024
The 10-day moving average for WM crossed bullishly above the 50-day moving average on October 02, 2024. This indicates that the trend has shifted higher and could be considered a buy signal. In of 15 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on October 08, 2024. You may want to consider a long position or call options on WM as a result. In of 84 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for WM just turned positive on September 30, 2024. Looking at past instances where WM's MACD turned positive, the stock continued to rise in of 43 cases over the following month. The odds of a continued upward trend are .
WM moved above its 50-day moving average on October 08, 2024 date and that indicates a change from a downward trend to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where WM advanced for three days, in of 365 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 345 cases where WM Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The Stochastic Oscillator entered the overbought zone. Expect a price pull-back in the foreseeable future.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where WM declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
WM broke above its upper Bollinger Band on October 09, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Fundamental Analysis (Ratings)
Tickeron has a negative outlook on this ticker and predicts a further decline by more than 4.00% within the next month with a likelihood of 64%.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 74, placing this stock better than average.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is seriously undervalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. WM’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (12.392) is normal, around the industry mean (5.429). P/E Ratio (37.617) is within average values for comparable stocks, (56.453). Projected Growth (PEG Ratio) (2.947) is also within normal values, averaging (2.472). Dividend Yield (0.013) settles around the average of (0.064) among similar stocks. P/S Ratio (4.241) is also within normal values, averaging (134.784).
Notable companies
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
General Information
a provider of waste management services
Industry EnvironmentalServices