IXP

Shares of Best Idea Alphabet Remain Incredibly Undervalued

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Image Shown: Alphabet Inc Class C shares are trading at bargain basement levels, in our view. By Callum Turcan Alphabet Inc (GOOG) (GOOGL) reported second quarter 2022 earnings that missed consensus top- and bottom-line estimates. However, investors were clearly expecting the tech giant to perform much worse as shares of GOOG leapt higher following the report. We continue to like Alphabet Class C shares (ticker: GOOG) as a top-weighted idea in the Best Ideas Newsletter portfolio. Our fair value estimate (adjusted for Alphabet’s recent 20:1 stock split) sits near $157 per share of GOOG, well above where shares are trading at as of this writing. Earnings Update During the second quarter of 2022, Alphabet’s GAAP revenues grew 13% year-over-year and … Read more

Three Growth Stocks That Offer Tremendous Value!

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Image: Some of the most attractive stocks on the market have both growth and value characteristics. By Brian Nelson, CFA As the market struggles to find a near term bottom, three of our favorite ideas are on sale. Meta and Alphabet are dirt cheap, in our view, while Microsoft has tremendous dividend growth prospects. We expect these three names to bounce back considerably once economic uncertainty subsides. Meta Platforms Meta Platfoms (META), formerly Facebook, has a portfolio of properties the world simply cannot do without, and the network effect that emanates from the nature of its properties creates a sizable competitive advantage where its advertising business model can proliferate, despite heightened competition from TikTok and the like. But for Meta, … Read more

Best Idea Disney’s Video Streaming Business Booms

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Image Shown: The Walt Disney Company’s video streaming growth ambitions showed signs of significant progress last fiscal quarter. Image Source: The Walt Disney Company – Third Quarter of Fiscal 2021 Earnings Press Release By Callum Turcan On August 12, The Walt Disney Company (DIS) reported third quarter earnings for fiscal 2021 (period ended July 3, 2021) that beat both consensus top- and bottom-line estimates. Disney’s video streaming services reported a sharp uptick in paid subscribers while the financial performance of the segment that includes its theme park and resort operations staged an immense rebound. We continue to be huge fans of Disney’s capital appreciation upside and include shares of DIS as an idea in the Best Ideas Newsletter portfolio. Operations … Read more

High-Yielding AT&T Remains Free Cash Flow Cow

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Image Shown: AT&T Inc’s core businesses in the wireless and fiber arenas continue to gain subscribers at a rapid pace, while its HBO/HBO Max offerings are also growing at a nice clip. Image Source: AT&T Inc – Second Quarter of 2021 IR Earnings Presentation By Callum Turcan On July 22, AT&T Inc (T) reported second quarter 2021 earnings that beat both consensus top- and bottom-line estimates. The company added 1,156,000 net postpaid customers to its core ‘Mobility’ business including 789,000 net postpaid phone customers, aided by its lowest churn rates ever at just below 0.7%. AT&T also added 174,000 net prepaid phone customers while its AT&T Fiber business added 246,000 net customers last quarter. We include shares of AT&T as … Read more

Facebook’s Growth Story Continues

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Image Shown: Shares of Facebook Inc are up ~23% year-to-date as of the end of normal trading hours on August 3. We continue to like shares of FB as a top-weighted holding in our Best Ideas Newsletter portfolio, and we see room for meaningful capital appreciate upside. By Callum Turcan On July 30, Facebook Inc (FB) reported second quarter 2020 earnings that beat consensus top- and bottom-line estimates by a mile. Advertising revenue was up 10% year-over-year last quarter, a slower growth rate than the 17% year-over-year increase posted during the first quarter of this year but still very impressive given the headwinds facing the digital advertising space due to the ongoing coronavirus (‘COVID-19’) pandemic. Facebook’s revenues and bottom-line grew … Read more

Update on High-Yielding AT&T

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Image Source: AT&T Inc – Second Quarter of 2021 IR Earnings Presentation By Callum Turcan The communications and media giant AT&T Inc (T) is pivoting back to its roots, a strategy that we think will pay off handsomely in the long run, though there have been plenty of rough bumps along the way. Management has finally found a strategy that AT&T can stick with. We include AT&T as an idea in the High Yield Dividend Newsletter portfolio and shares of T yield ~7.7% as of this writing (note that the company will rightsize its dividend in the coming quarters, resulting in a yield adjustment lower). Warner Bros. Discovery AT&T’s WarnerMedia segment is joining forces with Discovery Inc (DISCA) that will … Read more