US Stocks Reach Record Highs as Inflation Weakens: Investor Anxiety Diminishes, Greed Index Stays in 'Fear' Territory
Market Sentiment: The CNN Money Fear and Greed index showed a slight increase in fear, with a current reading of 33.1, indicating continued caution among investors despite a rise in U.S. stocks to all-time highs.
Inflation Data: The annual headline inflation rate for September 2025 was reported at 3%, slightly above August's 2.9% but below expectations, while core inflation fell to 3% year-over-year.
Stock Performance: Ford Motor Co. saw a significant 12% increase in its stock price after reporting strong third-quarter earnings, while Inhibrx Biosciences Inc. surged 102% following positive trial results for its cancer drug.
Earnings Reports: Investors are anticipating earnings results from companies such as Keurig Dr Pepper Inc., Nucor Corp., and Waste Management Inc. as they continue to monitor market trends.
Trade with 70% Backtested Accuracy
Analyst Views on WM
About WM
About the author
Investors Turn to Emerging Dividend Aristocrats for Stability
- Market Haven: In 2026, investors are turning to stable dividend payers due to concerns over artificial intelligence, with Wolfe Research noting that the Dividend Aristocrats ETF (NOBL) has risen over 9% year-to-date, demonstrating the effectiveness of its defensive strategy amid economic uncertainty.
- Telecom Performance: Verizon has raised its dividend for 19 consecutive years, with a 20% stock price increase in 2026 and a current dividend yield of about 5.8%; despite cautious analyst sentiment, Daiwa Capital Markets upgraded it to buy, highlighting its stable profits and dividends.
- Costco's Steady Growth: Costco has consistently raised its dividend over the past 20 years, recently increasing its quarterly payout from $1.16 to $1.30, with a 14% stock price rise in 2026, and analysts predict it will be a key beneficiary in a stimulated consumer environment, with a projected 6% upside in stock price over the next year.
- Emerging Dividend Aristocrats List: In addition to Verizon and Costco, Wolfe Research identified companies like BlackRock, Hershey Co, and Waste Management as emerging dividend aristocrats, highlighting their appeal and stability in an uncertain market.
Waste Management's Investment Returns Set to Materialize
- Shareholder Return Expectations: Waste Management anticipates a 29% year-over-year free cash flow growth in 2026, marking the largest jump since COVID, indicating that after years of investment, cash flow is rebounding, allowing for substantial shareholder returns.
- Capital Expenditure Strategy: The company deployed approximately $11.6 billion in 'planting' capital from FY2022 to FY2025, with $7.5 billion allocated to the acquisition of Stericycle, successfully creating a medical waste management segment that generated $2 billion in revenue and achieved a 16% profit margin in its first year, demonstrating the effectiveness of strategic investments.
- Infrastructure Modernization: WM invested about $1.8 billion in infrastructure, establishing seven landfill gas-to-energy plants now producing pipeline-quality natural gas, while also integrating robotics and AI across nine recycling facilities, enhancing operational efficiency and market competitiveness.
- Market Performance Analysis: Waste Management's stock surged from November lows, reclaiming both the 50-day and 200-day moving averages, currently consolidating between $238 and $240, with a decisive breakout above $240 indicating entry into blue-sky territory, reflecting strong market confidence and effective risk management.
Will RSG Stock Transform Guidance into Profits by 2026?
Earnings Report: Republic Services, Inc. reported fourth-quarter earnings per share of $1.76, exceeding forecasts of $1.62, but slightly missed revenue expectations with $4.14 billion, which was 1.6% below the forecasted $4.21 billion.
Future Guidance: The company provided guidance for full-year 2026 revenue between $17.05 billion and $17.15 billion, indicating a 3% year-over-year increase, and EPS guidance between $7.20 and $7.28, also reflecting a similar growth rate.
Stock Performance: Despite a negative total return of around 2.2% over the last 12 months, Republic Services' stock is showing signs of a bullish reversal, with analysts suggesting a potential upside of about 15% and a price target near $245.
Market Trends: Investors are adopting a more defensive posture amid concerns about growth sustainability in the artificial intelligence sector, while Republic Services is expected to benefit from ongoing consolidation trends in the waste management industry.
BMO Increases Target Price for Waste Management Inc. to $237, Up from $226
Waste Management Inc. Update: Waste Management Inc. has raised its target price to $237 from $226.
Market Reaction: The increase in target price reflects positive market sentiment and expectations for the company's performance.
Housing Market May Be Stabilizing: Building Supplies Company QXO Anticipates Recovery
- Company Overview: QXO is a building-supplies company led by Brad Jacobs, known for his history of acquiring businesses.
- Recent Activity: The company has recently announced another acquisition deal, continuing its trend of expansion through acquisitions.
WASTE MANAGEMENT INC: JEFFERIES INCREASES TARGET PRICE FROM $258 TO $263
- Company Update: Jeffries has raised its price target for Waste Management.
- New Price Target: The new target price is set at $263, up from the previous $258.
Investors Turn to Emerging Dividend Aristocrats for Stability
- Market Haven: In 2026, investors are turning to stable dividend payers due to concerns over artificial intelligence, with Wolfe Research noting that the Dividend Aristocrats ETF (NOBL) has risen over 9% year-to-date, demonstrating the effectiveness of its defensive strategy amid economic uncertainty.
- Telecom Performance: Verizon has raised its dividend for 19 consecutive years, with a 20% stock price increase in 2026 and a current dividend yield of about 5.8%; despite cautious analyst sentiment, Daiwa Capital Markets upgraded it to buy, highlighting its stable profits and dividends.
- Costco's Steady Growth: Costco has consistently raised its dividend over the past 20 years, recently increasing its quarterly payout from $1.16 to $1.30, with a 14% stock price rise in 2026, and analysts predict it will be a key beneficiary in a stimulated consumer environment, with a projected 6% upside in stock price over the next year.
- Emerging Dividend Aristocrats List: In addition to Verizon and Costco, Wolfe Research identified companies like BlackRock, Hershey Co, and Waste Management as emerging dividend aristocrats, highlighting their appeal and stability in an uncertain market.
Waste Management's Investment Returns Set to Materialize
- Shareholder Return Expectations: Waste Management anticipates a 29% year-over-year free cash flow growth in 2026, marking the largest jump since COVID, indicating that after years of investment, cash flow is rebounding, allowing for substantial shareholder returns.
- Capital Expenditure Strategy: The company deployed approximately $11.6 billion in 'planting' capital from FY2022 to FY2025, with $7.5 billion allocated to the acquisition of Stericycle, successfully creating a medical waste management segment that generated $2 billion in revenue and achieved a 16% profit margin in its first year, demonstrating the effectiveness of strategic investments.
- Infrastructure Modernization: WM invested about $1.8 billion in infrastructure, establishing seven landfill gas-to-energy plants now producing pipeline-quality natural gas, while also integrating robotics and AI across nine recycling facilities, enhancing operational efficiency and market competitiveness.
- Market Performance Analysis: Waste Management's stock surged from November lows, reclaiming both the 50-day and 200-day moving averages, currently consolidating between $238 and $240, with a decisive breakout above $240 indicating entry into blue-sky territory, reflecting strong market confidence and effective risk management.
Will RSG Stock Transform Guidance into Profits by 2026?
Earnings Report: Republic Services, Inc. reported fourth-quarter earnings per share of $1.76, exceeding forecasts of $1.62, but slightly missed revenue expectations with $4.14 billion, which was 1.6% below the forecasted $4.21 billion.
Future Guidance: The company provided guidance for full-year 2026 revenue between $17.05 billion and $17.15 billion, indicating a 3% year-over-year increase, and EPS guidance between $7.20 and $7.28, also reflecting a similar growth rate.
Stock Performance: Despite a negative total return of around 2.2% over the last 12 months, Republic Services' stock is showing signs of a bullish reversal, with analysts suggesting a potential upside of about 15% and a price target near $245.
Market Trends: Investors are adopting a more defensive posture amid concerns about growth sustainability in the artificial intelligence sector, while Republic Services is expected to benefit from ongoing consolidation trends in the waste management industry.
BMO Increases Target Price for Waste Management Inc. to $237, Up from $226
Waste Management Inc. Update: Waste Management Inc. has raised its target price to $237 from $226.
Market Reaction: The increase in target price reflects positive market sentiment and expectations for the company's performance.
Housing Market May Be Stabilizing: Building Supplies Company QXO Anticipates Recovery
- Company Overview: QXO is a building-supplies company led by Brad Jacobs, known for his history of acquiring businesses.
- Recent Activity: The company has recently announced another acquisition deal, continuing its trend of expansion through acquisitions.
WASTE MANAGEMENT INC: JEFFERIES INCREASES TARGET PRICE FROM $258 TO $263
- Company Update: Jeffries has raised its price target for Waste Management.
- New Price Target: The new target price is set at $263, up from the previous $258.
