CBS's (CBS) recent decision to pull back some of its streaming content from Netflix's (NFLX) library comes at a surprise to the rental company. Although Netflix has moved into offering its own content, CBS still competes more directly with companies like Disney (DIS), News Corp. (NWS), Time Warner (TWX) and Viacom (VIA). So what value does CBS see in pulling its content?

CBS (CBS) announced last week that it will acquire Clicker Media, a guide to Internet TV, and appoint Clicker's CEO, Jim Lanzone, to head CBS Interactive. CBS competes with other media conglomerates like Walt Disney (DIS), News Corp. (NWSA), Time Warner (TWX) and Viacom (VIA). While this move looks like one to strengthen its position in digital media, CBS also needs to better understand consumer habits and use it to its own advantage.

We take this opportunity to look at Clicker's business, the importance to CBS Interactive (the company's digital arm) and what CBS might be thinking with this move.

Our price estimate for CBS is $26.34, which is roughly a 10% premium to market price.

CBS (CBS) competes with other media conglomerates like Disney (DIS), News Corp. (NWSA), Time Warner (TWX) and Viacom (VIA) in the media and entertainment business.

The company recently released its fourth quarter 2010 earnings. Based on observed improvements in margins across all categories, an improving advertising environment and continued growth in the local broadcasting segment, we have updated our price estimate for CBS stock to $26.34. Our price estimate for CBS stands at 18% premium to the market price.

CBS Corporation (CBS) issued its fourth-quarter report after the bell today. The results should make shareholders happy. Adjusted net income rose an incredible 77% to 46 cents per share, according to the press release. That number went beyond the estimate by two pennies as indicated by TheFly.

Considering how the stock has fared over the past twelve months, one would have expected a good earnings report. The 52-week low for the shares is $12.26 while the 52-week high is $22.25. The chart communicates a company backed by some solid momentum.

For investors, online music operators have been extremely risky. Of course, the main problem has been the lawsuits over copyright infringement. As a result, there have been no IPOs in the online music sector since 2002. That was when Napster went bust.

But over the past couple of years, the environment has been getting better. Just look at Pandora, which is an Internet-radio company. It has filed for a $100 million IPO.

As everyone knows by now, the Apple (AAPL) iPhone is headed for Verizon's (VZ) reportedly more reliable network. With so much excitement over the announcement, traders and investors can look at various ways to profit off of this.

The obvious beneficiary is Apple, but there are additional ways to play it, such as the advertising companies, as Verizon hits the airwaves to promote the iPhone, even at the expense of the Android. A few ideas to consider include names like CBS (CBS) and Viacom (VIA), which should win no matter which platform wins.

CBS (CBS) has had a great year. Take a look at the twelve-month chart. Sure, it wasn't a straight line up, but the price action in the stock indicates potential confidence in the business on the part of Wall Street institutions. Many investors are certainly wondering how this idea will fare in 2011.

The shares have bounced between a relatively narrow range. The 52-week low is $12.26; the 52-week high is $19.65. On Thursday, the stock closed with a quote of $19.05. Volume, as you might expect, was very low, which is typical at this time of year.

Analyst Upgrades

• Oracle (ORCL) to outperform from perform at Oppenheimer.
• Accenture (ACN) to buy from hold at Jefferies.
• Advanced Energy (AEIS) and Applied Materials (AMAT) to overweight from equal weight at Barclays.
• Spreadtrum (SPRD) to buy from hold at Auriga.
• Healthcare Realty Trust (HR) and Tortoise Energy Capital (TYY) to outperform from neutral at RW Baird.
• Global Payments (GPN) to equal weight from underweight at Morgan Stanley.
• CBS (CBS) to buy from neutral at BofA/Merrill.
• Sonic (SONC) to outperform from neutral at Cowen.

CBS (CBS) reported third-quarter earnings last Thursday after the bell. On Friday, the shares closed down 3.7% to $17.01. The 52-week high for the stock is $18.20. Although the one-year chart doesn't show a smooth uptrend, it does indicate that the shares have exhibited a certain amount of strength. But does the sell-off on Friday, which was backed by strong volume, tell us that the stock should be avoided?

I've been cautious about this company. I have to admit, though, that it delivered a decent Q3. The press release says that adjusted profit jumped 40% to 35 cents per share. According to the Associated Press, that figure beat projections by four pennies. The AP article also mentioned something not so surprising: advertising dedicated to political races helped the period.

CBS (CBS) closed yesterday's session at a price of $17.51. Volume wasn't great, but it was a holiday, so I'm sure that affected the trading. What made me take note of the movement was the fact that the shares are not far at all from the 52-week high of $17.64.

I've been wary of buying the broadcasting company. Back in August, when I took a look at the Q2 report, I expressed some reticence toward the technical quality of the stock compared to other opportunities. Besides that concern, I suppose one always has to be careful with significant exposure to network television, as many consider such a traditional business challenging in an age of digital distribution and intense competition from cable channels.

Viacom's B shares (VIA.B) closed today's session at $33.70. They were down a little less than 1%. Volume was strong. Those who were hoping that the second-quarter earnings report, which was released earlier in the morning, would turn out to be an exciting catalyst were unfortunately disappointed.

The media company, whose colleagues include CBS Corporation (CBS) and The Walt Disney Company (DIS), said it made 69 cents per share this time around versus income of 46 cents per share in the year-ago period. On an adjusted basis, profit from continuing operations was 68 cents per share, which was two pennies ahead of estimates.

Have you been thinking about buying CBS (CBS)? It's not too far away from its 52-week high. At the end of Tuesday's regular session, the stock, whose colleagues include Disney (DIS), General Electric's (GE) NBC Universal, and News Corp. (NWS), settled out at a price of $15.01; the high for the year is $16.98. The one-year chart tells an interesting story: The trend over the last twelve months has been up, but lately, there's been a healthy amount of sideways action, which, of course, might not be healthy for growth investors.

Then again, for longer-term investors, at least the shares have been holding up, right? And now we come to the second-quarter report, released Tuesday after the bell. What does it tell us about the situation?