Dear Reader,

Management just put nearly $100 million behind one decision.

It bought back 2.8 million shares at an average price of $35.26 in a single quarter.

That is not a forecast. It is not a slogan. It is real money aimed at its own stock.

Click here to watch the briefing that connects this buyback, Wall Street ownership and the Palantir AI edge.

The institutional picture is even harder to ignore.

Institutions reportedly control approximately 83% of the shares.

BlackRock reportedly owns roughly 32 million shares worth about $716 million. Vanguard owns approximately 48 million shares worth nearly $1.1 billion.

Then there is the operating edge.

This profitable American energy producer signed a multi-year, multimillion-dollar agreement with Palantir.

Palantir's technology helps monitor equipment in real time, improve well performance and tighten raw-material logistics across a sprawling energy operation.

I do not view that as a side project. I view it as a potential moat: better information, fewer operational surprises and more disciplined production.

While Main Street debates the loudest AI stocks, management and major institutions are already putting serious capital around this one.

Click here to watch my full Ultimate Stock Unicorn briefing and see why I believe that gap can close fast.

Yours in smart speculation,

Karim Rahemtulla, Head Fundamental Tactician
Monument Traders Alliance

P.S. The buyback is only one piece. In the first six months of 2026, this company generated $2.3 billion in operating cash flow and $1.2 billion in net income.

Watch the presentation for the complete cash-flow, ownership and AI case.

AeroVironment’s $465 Million Army Laser Win Expands Its Counter-Drone Opportunity

Written by Ryan Hasson. Originally Published: 9/3/2026.

Defense technology has been one of the market's most volatile and widely discussed themes in 2026, apart from artificial intelligence, of course. But gains across the sector have been far from evenly distributed.

AeroVironment (NASDAQ: AVAV) is proof of that. While many of its peers have climbed, AVAV has fallen nearly 40% from where it began the year, leaving the drone and loitering-munitions maker as one of the sector's clear laggards. That is precisely what makes this week's news worth a closer look. The company just landed a landmark contract that could reframe the investment case, and the news arrives with the stock trading near its 52-week low.

A Landmark Directed-Energy Award

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A drilling crew near the Grand Canyon uncovered a clean energy well producing nearly eight times the output of Saudi Arabia's largest oil field, with potential to last two million years.

While the One Big Beautiful Bill Act eliminated federal credits for solar, wind, and EVs, this energy source was reclassified alongside oil and nuclear power and given eight years of tax credits. Google signed a 15-year contract, and Bill Gates committed $100 million.

One company controls the entire supply chain behind this discovery.

See the ticker behind this Grand Canyon energy breakthrough now

On Sept. 2, AeroVironment announced that the U.S. Army had awarded it a $464.8 million contract for its Enduring-High Energy Laser (E-HEL) program. Under the agreement, the company will produce dozens of its LOCUST X3 laser weapon systems over the next several years to defend against the small, low-flying drones that have reshaped the modern battlefield, a category the Pentagon labels Group 1 through 3.

What makes this more than just another defense contract is its historic nature. The award represents the first-ever production contract for directed-energy systems in U.S. history, marking the moment laser weapons officially graduated from prototype to full-scale production. The LOCUST X3 is a 30-kilowatt, platform-agnostic system designed to integrate with vehicles such as the Army's Joint Light Tactical Vehicle, and it builds on years of successful field testing. For AVAV, the contract validates the company's bet on directed energy and suggests it is beginning to pay off in a meaningful way.

What the Company Does

For those less familiar with the name, AeroVironment is a defense technology company best known as a pioneer in Unmanned Aerial Systems (UAS) and loitering munitions. Its Switchblade drones have become a staple of modern warfare, and the company has steadily expanded into counter-drone technology, an area of surging demand as militaries worldwide scramble to defend against cheap, proliferating aerial threats. The LOCUST award fits directly into that growing counter-UAS portfolio, adding a high-value production program to a business already anchored by a backlog of roughly $1.2 billion.

Fundamentals and Valuation

The fundamental picture is more mixed than the contract headline suggests, and investors should, as always, weigh both sides. AVAV generates nearly $2 billion in annual revenue, and analysts project earnings growth of close to 30% in the year ahead. However, the company is currently unprofitable on a trailing basis, having posted a net loss of roughly $265 million over the past 12 months. As a result, the stock trades at a forward multiple in the mid-40s rather than a trailing earnings multiple, which is not meaningful when earnings are negative. That forward valuation assumes the anticipated growth will materialize, leaving little to no room for disappointment.

The balance sheet offers some reassurance, with a low debt-to-equity ratio of 0.17 and a current ratio slightly above 4. Those figures indicate no immediate short-term solvency issues and leave the company some room to fund its expansion. Production for the new contract will be supported by a $30 million investment in its Albuquerque, New Mexico, facility, announced earlier this year, suggesting that management had anticipated the ramp.

Institutional and Analyst Sentiment

Despite the beaten-down share price, the professional community remains overwhelmingly bullish. The stock carries a Moderate Buy consensus rating from the 24 analysts covering it, and the average price target of $266.68 implies a striking 81% upside from current levels.

Despite its clear year-to-date (YTD) underperformance, institutions appear to view AVAV as mispriced and a long-term opportunity. Over the prior 12 months, institutions have purchased $3.85 billion of AVAV stock, versus just $1.14 billion in sales. That resulted in an impressive net inflow and current institutional ownership of slightly more than 86%.

Catalyst Meets Caution

AVAV has begun the month with a complex yet intriguing setup: a beaten-down defense innovator that just secured a historic, first-of-its-kind production contract, with analysts pointing to substantial upside. Another major catalyst is just around the corner: The company is set to announce its Q1 2027 earnings on Sept. 9 after the market closes.

The central question raised by the LOCUST award is whether directed energy can become a meaningful new growth pillar for the company, and this contract is the strongest evidence yet that it can. The risks are just as real, though, from trailing losses and margin pressures to a share price that has spent the year falling. The LOCUST award does not erase a difficult year, but it gives investors a concrete reason to take a fresh look at a name the market had largely written off.

Turning Trash to Cash: A $129M Bet on Waste

Written by Jeffrey Neal Johnson. Originally Published: 9/16/2026.

During shifting interest-rate cycles, institutions tend to rotate out of cyclical growth stocks and into businesses rooted in the physical economy.

Few industries offer the defensive predictability of municipal solid waste management. Essential public services, high regulatory barriers and contractually guaranteed price adjustments give the sector structural durability.

Trump goes "all-in" on Grand Canyon energy breakthrough (Ad)

A drilling crew near the Grand Canyon uncovered a clean energy well producing nearly eight times the output of Saudi Arabia's largest oil field, with potential to last two million years.

While the One Big Beautiful Bill Act eliminated federal credits for solar, wind, and EVs, this energy source was reclassified alongside oil and nuclear power and given eight years of tax credits. Google signed a 15-year contract, and Bill Gates committed $100 million.

One company controls the entire supply chain behind this discovery.

See the ticker behind this Grand Canyon energy breakthrough now

Cascade Investment, Bill Gates' private investment vehicle, underscored this dynamic through open-market purchases totaling approximately $129.3 million in Republic Services, Inc. (NYSE: RSG).

The accumulation of 580,710 shares across multiple trading sessions highlights how smart money is positioning against macroeconomic volatility. The mechanics behind this capital deployment demonstrate why waste infrastructure serves as a dependable foundation for long-term investors.

Gates Hauls in $129 Million of Republic Services Stock

Disclosures filed with the Securities and Exchange Commission confirm that Cascade Investment acquired 580,710 shares of Republic Services, Inc. in mid-September 2026. The purchases occurred in sequential blocks, including 256,000 shares and 324,810 shares, at an average outlay between $222 and $223 per share. These purchases follow earlier accumulations throughout the month, reinforcing a multidecade holding that makes Republic Services one of Gates' largest public equity positions outside of Microsoft (NASDAQ: MSFT).

Major institutional peers mirror this commitment. The California State Teachers' Retirement System holds approximately 16.26% of outstanding shares, while BlackRock Inc. (NYSE: BLK) controls about 5.79%. When prominent institutional capital absorbs supply at current price levels, it can provide downside support for the trading float and establish a defensive baseline against broader pullbacks.

Cashing in on Trash: Inside the Inflation-Proof Moat

To understand why defensive capital gravitates toward solid waste, examine how these operators generate cash. Unlike standard industrial businesses that can suffer margin compression from elevated labor and fuel costs during inflationary cycles, waste management operates with distinctive pricing structures. Republic Services provides collection, transfer, disposal and recycling services across the United States and Puerto Rico. A significant share of this business relies on exclusive, multiyear municipal contracts.

These agreements incorporate annual price adjustments tied to the Consumer Price Index (CPI) or specialized waste-collection indexes. When headline inflation increases, contract rates adjust upward on a scheduled timeline. For commercial and industrial accounts outside municipal boundaries, Republic Services has greater flexibility to adjust core pricing in the open market and pass expenses directly to clients.

Recent financial performance confirms the strength of these levers. In its latest quarterly earnings report, Republic Services posted adjusted diluted earnings per share (EPS) of $1.85, surpassing consensus estimates of $1.81. Quarterly revenue rose 4.6% year over year, supporting trailing annual sales of approximately $16.89 billion.

Beyond ordinary trash collection, Republic Services is finding additional growth in renewable natural gas (RNG) and specialized environmental services, the latter boosted by acquisitions such as US Ecology. By capturing landfill methane and converting it into commercial-grade pipeline fuel, Republic Services transforms an environmental mandate into a predictable, high-margin revenue stream.

Waste Wars: Republic Services Takes on Waste Management

For investors evaluating defensive positioning, comparing Republic Services with industry peer Waste Management, Inc. (NYSE: WM) reveals clear differences in financial architecture. Both operators trade with exceptionally low market volatility, reflected in Republic Services' beta of 0.40 and Waste Management's beta of 0.42.

The divergence emerges in operating profitability and balance-sheet leverage. Republic Services generates a net margin of 12.94% and a pretax margin of 15.18%, compared with Waste Management's 11.11% net margin and 14.12% pretax margin. This margin spread underscores efficient operational conversion and pricing capture across Republic Services' route networks.

Balance-sheet composition matters more when interest rates remain higher for longer. Republic Services carries a relatively conservative debt-to-equity ratio of 1.12, supported by a book value of approximately $38.66 per share.

Waste Management holds higher financial leverage, with a debt-to-equity ratio of 2.24 and a book value of roughly $24.80 per share. Although Waste Management achieves a higher return on equity (31.68%) than Republic Services (18.69%), much of that spread comes from higher debt rather than superior operating margins.

Insider trends illustrate a similar divergence. While Cascade steadily increased its ownership in Republic Services, Waste Management logged insider selling, highlighted by Chief Accounting Officer John Carroll's disposition of 1,365 shares on Sept. 9, 2026.

Sizing Up the Landfills: Price Targets Reveal Room to Run

Beginning a position in this essential infrastructure requires balancing valuation against income generation. Waste Management offers a trailing dividend yield of 1.74%, with an ex-dividend date of Sept. 11 and a distribution date of Sept. 25. Republic Services provides a dividend yield of 1.19%, with an upcoming ex-dividend date of Oct. 2 and payment scheduled for Oct. 15.

Valuation multiples also show a subtle variance. Republic Services trades at approximately 32 times trailing earnings and 31 times forward earnings, carrying a slight premium to Waste Management's forward multiple of 27.

Wall Street price targets average $245.26 for Republic Services, implying approximately 19% upside across 22 covering analysts. Waste Management carries an average price target of $258.89, suggesting a 19% gain across 19 analysts.

Investors should consider risks such as potential slowdowns in commercial construction volumes and the capital intensity of landfill development. Even with these challenges, Republic Services maintains projected earnings growth of approximately 10.04% and generates annual cash flow of about $13.46 per share, supporting consistent capital reinvestment and distribution stability.

Building Wealth With Municipal Waste

Monitoring insider accumulation provides valuable insight into how experienced institutional capital positions itself amid market uncertainty. Cascade Investment's deployment of approximately $129.3 million into Republic Services reflects strong confidence in the company's contractual moat, disciplined debt profile and reliable cash generation.

Investors seeking defensive ballast against equity-market swings may want to add Republic Services to their radar. Those prioritizing current quarterly income may prefer Waste Management's higher nominal yield, while investors seeking stronger balance-sheet insulation and wider operating margins could watch for entry points in Republic Services during short-term dips.