Thematic Signals And The Start Of Q4 2018 Earnings Season

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Includes: AAPL, F, M, MSFT, YUM
by: Tematica Research
Summary

The Q4 2018 earning season has started and out of the gate it's a mixed bag with retail taking it on the chin and the smartphone ecosystem under pressure.

Despite renewed concerns over the speed of the economy and EPS growth in 2019, companies are continuing to architect moves and partnerships that will garner them a firmer footing.

Microsoft is teaming with Walgreen Boots Alliance to tap into our Aging of the Population theme, as is Apple with the Apple Watch and Medicare.

Pizza Hut, owned by Yum Brands, is rolling out beer delivery to seven states in the hopes of capture incremental spending on a great combination.

The Q4 2018 earnings season has begun and thus far we’ve had a number of high profile companies, including Apple (AAPL), Samsung, Ford (F), Sherwin Williams (SHW), and Macy’s (M), preannounce weaker than expected results for the quarter. This follows the continued flow of economic data pointing to a slowing global economy. All of this makes for a tenuous earnings season as the velocity of those reports kicks into high gear over the next few weeks.

We discuss all of that on this week’s podcast and also share several thematic signals that have caught our attention. These span our Aging of the Population, Digital Lifestyle, Disruptive Innovators, Rise of the New Middle-Class and Guilty Pleasure investing themes. Some of the companies making noise in these signals are Apple, Microsoft (MSFT), Walgreens Boots Alliance (WBA), and Yum Brands’ (YUM) Pizza Hut. Tune into what we have to say about those signals and how they confirm the tailwinds associated with those investing themes.

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.