10 Best Paper Stocks to Buy According to Hedge Funds

4. Weyerhaeuser Company (NYSE:WY)

Number of Hedge Fund Holders: 37

​​Weyerhaeuser Company (NYSE:WY) is a US-based REIT and one of the largest private owners of timberlands in North America, managing approximately 10.4 million acres in the US alone and additional lands in Canada under long-term licenses. The company’s Timberlands segment focuses on sustainable forest management, including the harvesting and sale of logs for domestic and export markets. The Wood Products segment manufactures structural lumber, strand board, and engineered wood products and distributes building materials for both residential and commercial construction.

Weyerhaeuser Company (NYSE:WY) reported full-year 2024 GAAP earnings of $0.54 per diluted share on net sales of $7.1 billion, with adjusted EBITDA totaling $1.3 billion for the year. Despite challenging market conditions, the company made significant progress across multiple strategic initiatives, including growing Timberlands through acquisitions in Alabama, announcing plans to expand the engineered wood products portfolio, advancing the Natural Climate Solutions business, and capturing operational excellence improvements. The company returned $735 million to shareholders in 2024, including $153 million in share repurchases, while also increasing the base dividend by more than 5%.

A major strategic development for Weyerhaeuser Company (NYSE:WY) was the announcement of a $500 million investment to build a state-of-the-art facility in Arkansas, which is expected to generate over $100 million of annual adjusted EBITDA once fully operational. The Natural Climate Solutions business showed strong growth, with full-year adjusted EBITDA reaching $84 million, a 79% increase compared to 2023, and remains on track to reach $100 million of adjusted EBITDA by the end of 2025. The company demonstrated the durability of its portfolio and the flexibility of its capital allocation framework across market cycles, maintaining strong financial performance despite what was described as the most challenging lumber market in about 15 years. The large projects planned represent a great opportunity for WY to capitalize on a potential market recovery, which makes it one of the best paper stocks to buy now.