10 Best Stocks to Buy According to the Bill & Melinda Gates Foundation Trust

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

Bill & Melinda Gates Foundation Trust’s Stake: $6.5 billion

Number of Hedge Fund Holders: 67

Waste Management, Inc. (NYSE:WM) is a waste collection and disposal industry leader with a dominant market share and unequaled landfill ownership. In the first week of April, WM celebrated the grand openings of four important projects, including recycling facilities in Baltimore and in Central Texas, as well as RNG facilities in Chicago and Philadelphia. These openings are part of the company’s broader initiative, with over $323 million already committed in these sites.

Jefferies recently boosted its price target for Waste Management, Inc. (NYSE:WM) shares to $257, highlighting the company’s strong financial quarter, with revenue and EBITDA above consensus estimates. Meanwhile, Stifel maintained a Buy rating with a target price of $252, citing Waste Management’s outstanding fourth-quarter results and bullish outlook for 2025.

Waste Management, Inc. (NYSE:WM) reported a decent Q4 2024 revenue of roughly $5.9 billion, up 13% year-over-year, driven by strong market demand, continued asset network expansions, and Collection and Disposal service efficiencies. However, the company’s adjusted EPS fell 2.3% to $1.70 due to higher operating costs.

Diamond Hill Large Cap Concentrated Fund stated the following regarding Waste Management, Inc. (NYSE:WM) in its Q4 2024 investor letter:

“As valuations have continued rising and the economic cycle has gotten relatively long in the tooth, we’ve thought carefully about where and how we are exposed to more cyclical stocks. As such, we initiated just three new positions in Q4: Berkshire Hathaway, Aon and Waste Management, Inc. (NYSE:WM).

Waste Management is one of the US’s largest providers of waste-collection services. Its leading footprint of landfill assets provides the company with long-term pricing power. Further, Waste Management has invested heavily in recent years in recycling and renewable natural gas projects — which we believe the market is underappreciating given the value these investments will create as the projects wind down and come online.”