10 Best Low Beta Stocks To Buy

5. Waste Management, Inc. (NYSE:WM)

5-year Beta (monthly): 0.75

Number of Hedge Fund Holders: 49

Waste Management, Inc. (NYSE:WM) is a provider of comprehensive waste management and environmental services in North America.  The company primarily generates revenue through waste collection, which involves picking up and transporting waste to transfer stations, material recovery facilities, or landfills, with about 70% of collected waste processed at its landfills. It is the 5th best low beta stock on our list.

According to the company’s 2024 sustainability report, it is investing over $2.8 billion from 2022 to 2026 in sustainability growth initiatives. The company has established a sustainability strategy focused on three main ambitions, including repurposing materials, promoting renewable energy, and fostering thriving communities.

In 2023, Waste Management (NYSE:WM) made significant strides, adding more than 875,000 tons of recycling capacity, recovering over 15 million tons of material, and generating over 56 million MMBtus of renewable energy from captured landfill gas. Additionally, the company impacted over 525,000 individuals through targeted social programs and donated nearly $18.7 million to charitable causes.

Waste Management (NYSE:WM) is currently pursuing the acquisition of Stericycle, a medical waste collection and disposal company. The acquisition will allow the company to advance its service offerings and sustainability efforts, as Stericycle’s waste management services complement WM’s strengths. It plans to use technology to improve customer value and lower costs, estimating over $125 million in annual savings from better operations and logistics.

WM will pay $62 per share, which is a 24% premium, bringing the total value of the deal to $7.2 billion. Stericycle’s revenue is expected to grow at an annual rate of 3% to 5% from 2023 to 2027. The deal should add to the company’s earnings and cash flow within a year. The deal is expected to close in the fourth quarter of 2024, pending regulatory approvals and shareholder agreement.

In the second quarter, Waste Management’s (NYSE:WM) stock was held by 49 hedge funds, at a combined value of $8.7 billion. With 35.234 million shares, worth $7.5 billion, Bill & Melinda Gates Foundation Trust is the most dominant shareholder of the company, as of June 30.