Core Viewpoint - UBS upgraded Waste Management from Neutral to Buy and raised the price target to $260 from $225, anticipating a positive impact from the resumption of share repurchases [1] Group 1: Shareholder Returns - The resumption of share repurchases, which had been suspended since Q1 2024, is expected to drive a 2.5-times increase in capital returned to shareholders [1] - UBS noted that following previous investment cycles, Waste Management's relative valuation had expanded by as much as 20% [2] Group 2: Financial Performance - Waste Management successfully integrated Stericycle into its WM Healthcare Solutions business and reduced leverage from 3.6x to 3.0x in Q4 2024 [2] - These actions are projected to set the stage for over 30% year-over-year growth in free cash flow in 2026 [2] Group 3: Market Trends - UBS expects a shift in investor preference towards companies that emphasize capital returns rather than continued investment in municipal solid waste, which may support a re-rating of the stock [3]

Group 1 - Waste Management Inc. (NYSE: WM) shares reached an all-time high of $242.58 last June [1]

Group 1: CFO Transition at Robinhood - Jason Warnick is retiring as CFO of Robinhood, with Shiv Verma stepping into the role, focusing on finance and strategy [2][6] - Warnick emphasizes the importance of capital allocation and influencing the CEO in a CFO's role [3] - Verma has engaged with CEO Vlad Tenev and other leaders to focus on long-term strategic decisions for Robinhood [4] Group 2: CEO-CFO Partnership - The partnership between the CEO and CFO is critical, as CFOs are seen as strategic thought partners amid rapid technological changes [5] - CFOs provide enterprise-wide visibility and help translate ambiguity into actionable decisions [5] Group 3: Robinhood's Performance and Governance - Robinhood experienced significant changes over the past seven years, including workforce reductions and a shift to a general manager model [6] - In 2024, Robinhood reported total net revenue of $2.95 billion and annual net income of $1.41 billion, and joined the S&P 500 in September [6][7] Group 4: Tesla's Q4 2025 Performance - Tesla produced over 434,000 vehicles and delivered over 418,000 vehicles in Q4 2025, with energy storage deployments reaching a record of 14.2 GWh [12] - For the full year 2025, Tesla delivered 1.64 million vehicles, a 9% decrease from 2024, while BYD sold 2.26 million electric vehicles, becoming the largest EV maker [13]

Core Viewpoint - Waste Management is set to report earnings on January 28, 2026, with expectations of a significant increase in both EPS and revenue compared to the previous year [2][3]. Financial Performance - The company is forecasted to report an EPS of $1.95, reflecting a 14.71% increase from the same quarter last year [2]. - Revenue is expected to reach $6.38 billion, indicating an 8.29% rise compared to the year-ago quarter [2]. - For the entire fiscal year, earnings are projected at $7.51 per share and revenue at $25.27 billion, showing increases of 3.87% and 14.55% respectively from the previous year [3]. Analyst Estimates - Recent changes to analyst estimates for Waste Management are crucial, as they often reflect shifts in short-term business dynamics [3]. - The Zacks Consensus EPS estimate has seen a slight decrease of 0.19% over the last 30 days, and the company currently holds a Zacks Rank of 3 (Hold) [5]. Valuation Metrics - Waste Management has a Forward P/E ratio of 29.59, which is lower than the industry average Forward P/E of 30.41 [6]. - The company’s PEG ratio stands at 2.75, compared to the industry average PEG ratio of 2.39 [6]. Industry Context - The Waste Removal Services industry is part of the Business Services sector and holds a Zacks Industry Rank of 96, placing it in the top 39% of over 250 industries [7]. - Strong industry rankings suggest that top-rated industries tend to outperform lower-rated ones by a factor of 2 to 1 [7].

Core Viewpoint - WM has announced a capital allocation program that includes a significant increase in its dividend rate and a new share repurchase authorization [1] Group 1: Dividend Increase - The Board of Directors has approved a planned 14.5% increase in the dividend rate for 2026 [1] - The planned quarterly dividend rate will be $0.945 per share in 2026, up from $0.825 per share in 2025 [1] - This marks the twenty-third consecutive year of dividend increases for the company [1] Group 2: Share Repurchase Authorization - WM has authorized a new $3 billion share repurchase program, which supersedes the previous $1.5 billion repurchase authorization announced in 2023 [1]

Core Insights - Waste Management (WM) shares have increased by 3.7% over the past month, outperforming the industry growth of 1.2% [1] - The company holds a Growth Score of B, indicating a solid assessment of its growth quality and sustainability [1] Growth Factors - WM's strong waste collection, recycling, and disposal infrastructure supports sustainable long-term growth and competitive advantages [2] - The company leads its sector by providing advanced recycling solutions and renewable energy through its extensive assets, including landfills and waste-to-energy plants [2] - WM's pricing and cost control strategy aligns price adjustments with service quality, enhancing customer satisfaction [3] - The focus on optimizing the healthcare solutions business through the Stericycle acquisition is expected to meet rising demand due to declining birth rates and an aging population [3] Dividend History - WM has consistently paid dividends since 1998, with payments of $970 million in 2021, $1.1 billion in 2022, $1.14 billion in 2023, and projected $1.21 billion in 2024, attracting long-term investors [4] Risk Factor - The company's current ratio stands at 0.84, below the industry average of 0.98, indicating potential challenges in meeting short-term obligations [5] Market Position - WM currently has a Zacks Rank of 3 (Hold), while Genpact and Palantir Technologies are better-ranked stocks in the business services sector, with Zacks Ranks of 2 (Buy) [6][7] - Genpact has a long-term earnings growth expectation of 9.6% and an average earnings surprise of 5.5% over the last four quarters [6] - Palantir Technologies boasts a long-term earnings growth expectation of 50% and an average earnings surprise of 16.3% over the last four quarters [7] Summary - WM's recent performance, growth strategies, and dividend history position it favorably in the market, despite a lower current ratio compared to industry peers [8]

Core Insights - The article discusses the expertise of Brett Ashcroft Green, a CERTIFIED FINANCIAL PLANNER™, who specializes in private credit and commercial real estate mezzanine financing [1] Group 1: Professional Background - Brett Ashcroft Green has over 10 years of experience in the financial sector, particularly in investment banking and real estate [1] - He holds an MBA and has worked with high-net-worth and ultra-high-net-worth individuals globally [1] - His family operates a real estate brokerage in Nevada, known for its tax advantages for retirement and estate planning [1] Group 2: Language and Cultural Proficiency - Brett is fluent in Mandarin Chinese, which he uses in both business and legal contexts [1] - He has spent a significant portion of his career in China and Asia, enhancing his understanding of the regional market [1] Group 3: Industry Connections - Brett has collaborated with leading commercial real estate developers, including The Witkoff Group, Kushner Companies, The Durst Organization, and Fortress Investment Group [1]

Group 1 - Brett Ashcroft Green is a CERTIFIED FINANCIAL PLANNER™ with extensive experience in private credit and commercial real estate mezzanine financing [1] - He has worked with high-net-worth and ultra-high-net-worth individuals globally, indicating a strong focus on affluent clientele [1] - His professional background includes collaboration with leading commercial real estate developers such as The Witkoff Group and Fortress Investment Group [1] Group 2 - The article does not provide any specific financial data or performance metrics related to companies or industries [2][3][4]

Core Viewpoint - Waste Management has a strong dividend history and cash flow coverage, despite recent earnings volatility, raising questions about the sustainability of its dividend amidst financial pressures [1][10]. Dividend Information - The annual dividend is $3.225 per share, yielding 1.51% with a recent increase of 7.1% [1]. - The company has maintained over 20 consecutive years of dividend increases, including during the pandemic [6]. - The five-year compound annual growth rate (CAGR) for dividends is 5.3%, with 2025 marking the largest increase in years at 7.1% [8][7]. Cash Flow and Payout Ratios - In 2024, Waste Management paid $1.21 billion in dividends against $2.16 billion in free cash flow, resulting in a 56.0% free cash flow payout ratio [2]. - The earnings payout ratio is 41.6%, indicating a healthy distribution of earnings [3]. - Operating cash flow coverage is strong at 4.5 times, with operating cash flow increasing by 69% from $3.18 billion in 2017 to $5.39 billion in 2024 [3]. Debt and Leverage - The company has a total debt of $23.36 billion against $9.52 billion in equity, leading to a debt-to-equity ratio of 2.45x, which is considered elevated [4]. - The net debt-to-EBITDA ratio stands at 3.19x, which is manageable for a capital-intensive business [5]. - Interest coverage is adequate at 4.4x, providing a cushion for debt obligations [5]. Management Perspective - CEO Jim Fish describes Waste Management as a "forever stock," emphasizing the company's strategy to generate consistent long-term value [9]. - In 2024, the company returned $1.47 billion to shareholders through dividends and buybacks, with a shift towards dividends reinforcing confidence among income investors [9]. Dividend Safety - The dividend is considered safe due to the 56% free cash flow payout ratio and 50.9% earnings payout ratio, providing a substantial cushion against earnings volatility [10]. - Management projects a return to targeted leverage levels by mid-2026, with synergies from the Stericycle acquisition tracking positively [10].

Investment Rating - The report maintains a positive outlook for diversified companies and specific sectors such as aerospace, defense technology, and data centers, indicating strong growth potential for 2026 [1][3][7]. Core Insights - Diversified companies are optimistic about 2026, with Endvent expecting significant order fulfillment and Mirion anticipating a record order quarter of $175 million [1][4]. - The aerospace sector shows robust fundamentals, with demand for new aircraft models exceeding supply, and strong pricing power observed [5]. - Defense technology companies like AeroVironment and Andro are highlighted for their growth potential, with Andro projecting revenues of approximately $5 billion in 2026 [6]. - The data center and AI sectors are expected to see substantial capital expenditure growth, with predictions of 79% and 36% increases in 2025 and 2026, respectively [7]. Summary by Sections Diversified Companies - 18 diversified companies participated in the conference, with 13 expressing optimism for 2026, despite challenges in the chemicals sector [3]. - LyondellBasell Industries has seen a downgrade in performance expectations, with most basic industry companies anticipating a 1% to 5% decline in EBITDA [3][11]. Aerospace and Defense - The aerospace industry is experiencing strong demand, with a notable performance from Embraer in the business jet market [5]. - Defense technology firms are focusing on growth opportunities, with AeroVironment identifying 12 potential billion-dollar projects [6]. Data Centers and AI - The report indicates a strong outlook for data centers, with significant capital investments anticipated [7]. - Companies like Flex are investing in capacity to meet the growing demand driven by AI applications [8]. Industrial Technology - Belden's core industrial business is showing positive trends, with a recovery in discrete manufacturing and growth in Europe and China [9][10]. - The waste management sector is facing challenges but shows signs of optimism regarding pricing, particularly in landfill operations [18][19]. Transportation - The transportation sector is recovering, with signs of stabilization in truck transportation and improved pricing discipline [12]. Public Infrastructure - There is a positive sentiment regarding public construction spending, with expectations for continued growth in related projects [21].