Billionaire Ken Fisher’s 10 Industrial Stock Picks with Huge Upside Potential

4. Advanced Drainage Systems, Inc. (NYSE:WMS) 

Number of Hedge Fund Holders: 36

Upside Potential: 36.28%

Advanced Drainage Systems, Inc. (NYSE:WMS) creates and produces thermoplastic corrugated pipes and water management products across North America and worldwide. It works across four major segments: Pipe, International, Infiltrator, and Allied Products, serving home builders, commercial construction, farms, and infrastructure projects. Its diverse geographic reach and strong presence in housing and infrastructure markets give the company solid growth potential.

In fiscal Q3 ended December 31, 2024, Advanced Drainage Systems, Inc. (NYSE:WMS) brought in $691 million, up 4% from last year, partly due to the acquisition of Orenco. Adjusted EBITDA hit $191 million, down 6%, while earnings per share were $1.09, just missing targets. Free cash flow reached $374 million year-to-date, lower than the $564 million the year prior. Meanwhile, home construction sales grew 9%, and commercial sales jumped 7%, especially in southern regions.

Advanced Drainage Systems, Inc. (NYSE:WMS) also introduced new EcoStream biofiltration systems and storage chambers. The company boosted its recycling operations in Georgia and kept incorporating Orenco’s wastewater solutions. It is expected that these steps will improve the company’s long-term profit margins.

Although infrastructure sales dropped 6% compared to the previous year, Advanced Drainage Systems, Inc. (NYSE:WMS) maintains its expectation for 2025, hinting at stable prices and lower material costs. As weather conditions get harsher, demand for stormwater systems is increasing. With little competition disruption expected, the company feels good about its future. Ken Fisher owns about $3.7 million in ADS stock, roughly 0.001% of his investment portfolio.