We came across a bullish thesis on Waste Management, Inc. (WM) on Substack by Francesco Ferrari. In this article, we will summarize the bulls’ thesis on WM. Waste Management, Inc. (WM)'s share was trading at $230.91 as of April 17^th. WM’s trailing and forward P/E were 33.91 and 29.85 respectively according to Yahoo Finance.

Waste Management (WM), a $92.29 billion market cap company in the Commercial Services and Supplies sector, exemplifies a market-beating stock with low volatility. Over the past decade, WM has delivered a compound annual growth rate (CAGR) of 15.3% while maintaining a beta of just 0.67, showcasing its ability to generate consistent alpha without wild price swings. This makes it an ideal holding for investors seeking stable yet strong long-term returns, especially those sensitive to portfolio volatility. The company’s financial performance is equally compelling, with a 9.5% return on invested capital (ROIC), 7.2% revenue growth over the past three years, and an 8.4% CAGR in gross profits. WM also boasts solid profitability, supported by a 39.3% gross margin and a 19.5% operating margin, along with a healthy EBITDA-to-interest expense ratio of 11. These financial metrics reflect a resilient business model capable of sustaining growth and delivering market outperformance, even in uncertain market conditions.

Waste Management, Inc. (WM) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 67 hedge fund portfolios held WM at the end of the fourth quarter which was 54 in the previous quarter. While we acknowledge the risk and potential of WM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than WM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article was originally published at Insider Monkey.