Expecting Mid Cap and Value to Resume Leadership

Despite a tough June and second quarter for our Mid Cap and Value recommendations, we are sticking with these themes.  Client positions in the S&P Mid Cap 400 (MDY) and Russell 1000 Value (IWD) that are linked to our Market Cap and Style models will be maintained.  For clients not invested in our models but […]

Is Value Finally Going to Provide Persistent Leadership?

The are no changes to Northlake’s favored themes after the June update.  For the third consecutive month, we recommend mid cap and value.  Client positions following the models will maintain positions in the S&P 400 Mid Cap (MDY) and the Russell 1000 Value (IWD).  Clients using thematic strategies but not invested via the models will […]

Buy Home Depot. Cheaper Than Buying A House.

When Home Depot (HD) last reported earnings we noted that the company was performing extremely well, but investors were worried about the company’s ability to grow sales this year compared to the heavy spending on home upgrades during the peak of stay-at-home orders in 2020.  4Q20 also saw some pressure on margins from elevated expenses […]

Disney Traditional Businesses Provide Bridge to Renewed Streaming Growth

Disney (DIS) shares are trading down about -3% on a big up day for the market after reporting 2Q21 results.  Despite reporting results ahead of expectations on financial metrics and seeing estimates for revenue, operating income, and EPS rise, the shares are falling due to a shortfall in growth for Disney+ subscribers and management guidance […]

A Step Closer to Rewarding Patience at Activision

When Activison Blizzard (ATVI) last reported, we noted that the stock looked fully valued but the company’s excellent track record, recent business strategy enhancements, and potential for positive surprises left us willing to wait out a period of lesser stock performance.  1Q21 was a big step in the right direction with ATVI easily beating Wall […]

Nexstar Cash Flow Harvest Just Beginning

Nexstar Media Group (NXST) reported strong 1Q21 earnings highlighted by a faster than expected improvement in core advertising, continued upside in profit margins, and a big beat on EBITDA.  Management reaffirmed its key guidance metric based on the average of 2021 and 2022 free cash flow.  The cyclical nature of political spending requires use of […]

Sticking with Mid Cap and Value into the Recovery

There are no changes to the recommendations from Northlake’s Market Cap and Style modes for May.  We are sticking with Mid Cap and Value for another month.  Current client positions following the models in the S&P 400 Mid Cap (MDY) and Russell 1000 Value (IWD) will be held for at least another month.  Clients also […]

Improved Sentiment Emerging for Comcast

Comcast reported another good quarter with growth in the dominant cable business sustaining in the high single digits with margins continuing to expand.  Encouragingly, the much smaller but still material media businesses at NBC Universal and Sky are showing clear signs of emerging from the severe impacts of the pandemic.  It seems like most every […]

Facebook Growth Outlook Remains Strong

Facebook (FB) reported another blowout quarter with growth accelerating.  Strength was across the board in all geographies.  Earnings estimates for 2021 thru 2023 are moving up substantially.  If this sounds like what we wrote for Alphabet and Apple that is a fact.  You can add Amazon to the mix with a similar report.  It is […]

Apple Branches in Full Bloom

While reviewing Apple’s (AAPL) 2Q21 earnings report, I mentioned to Tim that I could almost just repost the blog reviewing 1Q21 earnings.  Just change the date and tweak it here and there.  Tim astutely pointed out that consistency is a sign of a great company; it is also especially valuable in an era when tweets […]