5 Best Waste Management Stocks to Buy Now

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

Number of Hedge Fund Holders: 44

Waste Management, Inc. (NYSE:WM) specializes in environmental and waste solutions, catering to residential, commercial, industrial, and municipal customers in the United States and Canada. On February 9, Waste Management, Inc. (NYSE:WM) announced the pricing of $1.25 billion senior notes, consisting of $750 million senior notes with a 4.625% interest rate and maturing on February 15, 2030, and $500 million senior notes with the same interest rate and maturing on February 15, 2033. The proceeds from the offering will be utilized to pay off borrowings under the company’s commercial paper program for working capital, repay $500 million of outstanding 2.40% senior notes due in May 2023, and for general corporate purposes. 

On February 2, Citi analyst Bryan Burgmeier reiterated a Buy recommendation on Waste Management, Inc. (NYSE:WM) but lowered the firm’s price target on the shares to $180 from $183 following the Q4 results. The analyst believes there is a clear path to achieving sustainable free cash flow improvement.

According to Insider Monkey’s Q4 data, 44 hedge funds were bullish on Waste Management, Inc. (NYSE:WM), compared to 41 funds in the prior quarter. Bill & Melinda Gates Foundation Trust is the biggest position holder in the company. 

Here is what Diamond Hill Large Cap Fund has to say about Waste Management, Inc.(NYSE:WM) in its Q1 2022 investor letter:

“We also initiated a position in Waste Management (NYSE:WM), one of the largest providers of waste collection services in the US. We believe it is a high-quality business with ownership of key landfill assets that provide pricing power over the long term. Its stock was trading at a discount to our estimate of intrinsic value due to short-term market concerns over an increase in growth investments—we expect these investments to be value-creating over the long term.”

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