Two Major Events May Decide If The Rally Resumes

Join TradeAlgo's Free Live Trading Session ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ [EARN WHILE YOU LEARN! JOIN OUR FREE LIVE TRADING SESSION!]( Hello investor, Two Major Events May Decide If The Rally Resumes The market recovered from its weeks-long slump just before its busiest week of first-quarter earnings. These reports will be a high-stakes one. About 180 S&P 500 companies will report this week — including several Big Tech companies such as Microsoft, Alphabet, Meta Platforms and Tesla. Investors expect these Magnificent Seven companies’ profits to jump by about 40% from a year ago. Clearly, the expectations are high. (Photo: Amber Bragdon/Getty Images) And the market desperately needs these companies to deliver. Matt Maley at Miller Tabank + Co. believes that guidance will be critical. The future profit growth is what investors are valuing the most right now — rather than the previous quarter results. - “Just beating consensus estimates for earnings won’t be enough this time around,” said Matt Maley at Miller Tabak + Co. “We’re going to have to see much better guidance from Corporate America if the stock market is going to resume its advance.” Sticky inflation (which raised the two-year yields) and geopolitical conflicts led to the recent sell-off. Now it is on the earnings. However, inflation data will be out this Friday which could play into the market’s short-term direction. - “There are probably two dynamics at work behind the better tone in global stock markets … the decline in gold and oil prices, and the steadiness (rather than rise) in the USD,” said Thierry Wizman, global FX and rates strategist at Macquarie. - “For one, concern over a spreading regional war in the Middle East has faded. The movement away from a wider conflagration, and back to a shadow war is probably why US bond yields are higher today.” Ultimately, the market needs good news. Positive inflation data and strong earnings guidance can get the rally back on track. This Business Picks Up Your Garbage — and Can Be a Steady Stock for Decades Today’s Stock Pick: Republic Services (RSG) Republic Services does a dirty job for America. It is the second largest provider of waste disposal in the United States (after Waste Management). So, it is an essential business in a $114 billion environmental services industry. And best of all, about 80% of its revenue has an “annuity-type” profile. (Source: Republic Services) Its footprint is vast. They make about 5 million daily pickups for 13 million customers. In the map below, you can see how the company has operations around the country — with some opportunities to expand through consolidations. (Source: Republic Services) The world is shifting toward environmental and economic sustainability, right? Republic Services plays a key role in this shift. It has partnered with experts to turn landfill gas into renewable energy. The company expects that business to add $100 million in incremental EBITDA annually by 2028. (Source: Republic Services) The company certainly knows how to grow its business steadily. Its 5-year total shareholder return was 148% versus 107% for the S&P 500. How? Through 20 consecutive years of annual dividend increase and $2.5 billion cash returned to shareholders over the last three years. (Source: Republic Services) Moreover, its adjusted EPS jumped 16% CAGR since 2021: (Source: Republic Services) Lastly, Republic Services expects its adjusted EPS to grow modestly this year — just below a double-digit rate. Once again, it is not a sexy business. It is going to grow steadily over the years due to its essential nature. If you are looking for a solid stock that could perform above the S&P 500 over the next few years, Republic Services may be the perfect candidate. [EARN WHILE YOU LEARN! JOIN OUR FREE LIVE TRADING SESSION!](       © All Rights Reserved, Trade Alliance [Unsubscribe]( | [Manage Preferences](