Tuesday, January 3, 2023
Zacks Research Daily features the best research from our team of analysts. Today’s Research His Daily features new research reports on 16 major stocks, including Berkshire Hathaway (BRK.B), Walmart (WMT) and The Procter & Gamble Company (PG). These research reports are handpicked from nearly 70 reports published today by our team of analysts.
You can do it Click here for today’s report >>>
shares of Berkshire Hathaway Zachs Insurance – +0.2% over the past year compared to a +2.1% rise in the P&C industry and a -21.2% decline in the S&P 500 Index. The company is he one of the largest property and casualty insurers measured by premium size. Berkshire’s inorganic growth story remains impressive with strategic acquisitions. Strong cash position supports revenue-increasing bolt-on buyouts and demonstrates financial flexibility.
Continued insurance business growth drives float growth, drives earnings and maximizes return on equity. The non-insurance business has improved in earnings and performance over the last few years. A healthy capital level will provide further impetus.
On the flip side, Berkshire’s name is synonymous with Warren Buffett’s, and it makes sense for investors to be vigilant about the sustainability of the stock’s impressive performance in the post-Buffett period.
(You can do it Read the full research report on Berkshire Hathaway >>>)
shares of walmart Zacks Retail – Down -0.2% over the past year compared to -0.4% in the Supermarkets industry and -21.2% in the broader market. The company’s consolidated operating profit and earnings per share still show declines from the same period last year. The company is facing cost inflation and expects it to continue to rise.
However, Walmart has benefited from a robust omnichannel operation due to efforts to enhance both in-store and online experiences. Walmart has particularly benefited from its efforts to strengthen its delivery services through acquisitions and partnerships.
The company’s U.S. comp sales continued to benefit from increased grocery market share in the third quarter of fiscal 2023, with top and bottom lines exceeding Zacks Consensus estimates and year-over-year growth. A strong third-quarter show allowed management to raise its overall guidance for fiscal 2023.
(You can do it Read the full Walmart research report here >>>)
shares of Procter & Gamble The -7.3% decline over the past year is far better than the -21.2% decline in the broader market, compared to the -8.1% decline in the Saks soap and cleaning materials industry. We are facing higher prices, higher shipping costs, investment in products and packaging, and other impacts that are reducing our profit margins. Inflation, rising fares and a weak currency have also made the outlook for fiscal year 2023 monotonous.
However, Procter & Gamble beat expectations in first quarter sales and earnings, marking the 10th consecutive time that sales have exceeded expectations. Strong pricing, favorable mix, and overall segment strength led to year-over-year sales growth.
Improved productivity amid cost headwinds also contributed to the results. We saw increased SG&A leverage from savings in overhead and marketing costs, and increased cost leverage from higher sales and real estate.
(You can do it Read the full Procter & Gamble research report here >>>)
Other notable reports featured today include Cisco Systems, Inc. (CSCO), Zoetis Inc. (ZTS), and Moody’s Corporation (MCO).
Director of Research
Sheraz Mian
Note: Sheraz Mian is the head of Zacks Equity Research and a recognized total return expert. He is frequently cited in print and electronic media and publishes a weekly magazine. Performance trends When Earnings preview report. If you would like to receive an email notification whenever Sheraz publishes a new article, click here >>>
