Is Waste Management (WM) a Defensive Stock?
Parnassus Investments, an investment management company, released the 'Parnassus Core Equity Fund' first quarter 2025 investor letter. A copy of the letter can be downloaded here. The Fund (Investor Shares) fell -2.44% (net of fees) in the quarter, outperforming the S&P 500 Index's -4.27% return. U.S. equities fell in the first quarter, showing a shift from the robust gains of the previous quarter. In addition, please check the fund's top five holdings to know its best picks in 2025.
In its first-quarter 2025 investor letter, Parnassus Core Equity Fund highlighted stocks such as Waste Management, Inc. (NYSE:WM). Waste Management, Inc. (NYSE:WM) is a waste management company that offers collection services, including picking up and transporting waste and recyclable materials. The one-month return of Waste Management, Inc. (NYSE:WM) was -3.86%, and its shares gained 7.48% of their value over the last 52 weeks. On June 25, 2025, Waste Management, Inc. (NYSE:WM) stock closed at $228.58 per share, with a market capitalization of $91.982 billion.
Parnassus Core Equity Fund stated the following regarding Waste Management, Inc. (NYSE:WM) in its Q1 2025 investor letter:
"Waste Management, Inc. (NYSE:WM), along with other consumer-facing service companies, benefited from investors fleeing risk as uncertainty gripped the markets. The stock is viewed as defensive because its core business is relatively unaffected by an economic slowdown and tariffs."
Aerial view of a Waste Management Transfer Station, highlighting the scale of its operations.
Waste Management, Inc. (NYSE:WM) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 66 hedge fund portfolios held Waste Management, Inc. (NYSE:WM) at the end of the first quarter, which was 67 in the previous quarter. While we acknowledge the potential of Waste Management, Inc. (NYSE:WM) as an investment, our conviction lies in the belief that 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 as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains.
In another article, we covered Waste Management, Inc. (NYSE:WM) and shared the list of best 52-week high stocks to buy according to analysts. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors. While we acknowledge the potential of WM as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.
Disclosure: None. This article is originally published at Insider Monkey.
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