12 Most Promising Green Stocks According to Hedge Funds

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

Number of Hedge Fund Investors: 54

Waste Management, Inc. (NYSE:WM) is a leader in waste collection, disposal, and recycling services in North America. The company focuses on landfill gas-to-energy projects, recycling initiatives, and innovative waste reduction strategies. Waste Management, Inc. (NYSE:WM) plays a key role in minimizing environmental impact and promoting recycling.

Waste Management, Inc. (NYSE:WM) is making substantial investments in sustainability and renewable energy projects to drive growth and lessen its environmental impact. The company has pledged to invest approximately $3 billion in sustainability-related projects, including the development of renewable natural gas (RNG) projects, recycling facilities, and other initiatives. These investments are expected to contribute to significant earnings growth and free cash flow, with the company forecasting $800 million in EBITDA from these initiatives by 2027.

Waste Management, Inc. (NYSE:WM) is also leveraging technology and automation to enhance its operations, improve efficiency, and lower costs. The company has integrated various technologies, such as automated routing systems, scheduling and planning tools, and advanced mapping systems, to optimize its collection and disposal processes. Additionally, Waste Management, Inc. (NYSE:WM) has automated over 800 routes in its residential fleet to reduce labor reliance and boost performance. These technological investments are expected to drive margin growth and operational efficiency, with the company aiming to significantly lower operating expenses as a percentage of revenue.

Waste Management, Inc. (NYSE:WM) is also pursuing strategic acquisitions to broaden its service offerings and expand its market presence. On November 4, the company completed the acquisition of Stericycle, a leading provider of medical waste management services. This acquisition is anticipated to enhance the company’s business portfolio, generate synergies, and promote growth through expanded service offerings.