Alphabet (GOOG/GOOGL) reported slightly disappointing 4Q19 results compared to elevated expectations that existed thanks to a +10% gain in the shares in January to all-time highs. Looking more closely at the quarter, the headline miss in revenues was heavily concentrated in hardware sales, an area where Northlake has little concern. Overall advertising revenues at search […]
Northlake’s Style model shifted to a full growth recommendation after spending two months neutral on the growth vs. value themes. The Market Cap model continues to recommend mid cap for the third consecutive month. Client positions in the Russell 1000 Value (IWD) have been sold and the proceeds reinvested in the Russell 1000 Growth (IWF). […]
Apple reported a strong 1Q20 and guided the current quarter nicely ahead of estimates on all key financial metrics. This is clearly a positive for Apple shares. However, the stock has soared recently, up 21% since Thanksgiving. Northlake sees the latest good news as largely reflected in the current price of Apple shares. Fundamentals are […]
Comcast reported solid 4Q19 results with strength in the cable business offset by a modest shortfall at NBC Universal’s broadcast and cable TV networks, theme parks, and film studio. As often seems to be the case over the past year, Comcast’s conference call snatched defeat from the jaws of victory when the company discussed specific […]
IBM’s 4Q19 earnings report was a big step in the right direction for Northlake’s bullish thesis on IBM shares. As a reminder, we see the potential for an expansion in the company’s depressed P-E multiple if the company can return to modest revenue growth due to improvement in the company’s growth businesses – hybrid cloud, […]
Northlake’s Market Cap and Style models begin 2020 as they ended 2019, favoring mid caps and neutral on growth vs. value. This means that client positions following the models will stay invested in the S&P 400 Mid Cap (MDY), the Russell 1000 Growth (IWF), the S&P 500 Growth (SPYG), and Russell 1000 Value (IWD) for […]
There are no changes to Northlake’s thematic models for December. The new signals initiated at the start of November remain in place. The Market Cap model is recommending mid cap and the Style model is neutral on growth vs value. With no changes to the signals, client positions following the models held in the S&P […]
Nexstar Media Group (NXST) has been one of Northlake’s best performing stocks this year. The shares are up 38%, including a gain of about 10% since the company reported third quarter earnings last week. NXST has attracted investors due to its highly accretive acquisition of Tribune, which makes NXST the largest owner of local TV […]
CBS reported 3Q19 earnings in line with reduced Wall Street expectations in its last quarter as standalone company. The merger of Viacom and CBS to create ViacomCBS should close in the first half of December. CBS shares represent the newco as Viacom shareholders will exchange their shares for CBS shares. CBS shares have declined sharply […]
Following a disappointing result in the June quarter with unexpected weakness in Disney’s core business segments, September quarter earnings were improved with stabilization or improvement in theme parks and acquired 21st Century Fox film and TV operations. This led to a relief rally of 3% in DIS shares which had pulled back from $140 to […]
