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 forecasts in first quarter sales and earnings, marking the 10th consecutive time that sales have beaten forecasts. 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 >>>
today’s must read
Berkshire (BRK.B) poised for growth with solid insurance business
Walmart (WMT) benefits from impressive e-commerce business
Productivity and Cost Reduction Plans to Boost Profit Margins at P&G (PG)
Featured Report
Cisco (CSCO) Benefits from Adopting Strong Security Products
According to Zacks analysts, Cisco benefits from a rapidly growing security market driven by robust adoption of identity and access, advanced threat, and integrated threat management security solutions.
Dermatology, Parasiticide Fuel Zoetis (ZTS), Poultry Weak
Zoetis’ companion animal business, driven by Apoquel and Simparica, maintains growth amid poultry product challenges, according to analysts at Zacks. Innovative product launches should drive growth.
Buyouts, Diversification Moody’s (MCO), High Cost Ailes
Acquisition synergies and efforts to diversify earnings will boost Moody’s, analysts at Zacks said. Pricing pressures from rising costs, a challenging business environment and stiff competition are concerns.
Solid product suite Aid Avantor (AVTR) in tough competition
Zacks analysts are optimistic about Avantor’s robust product portfolio, which includes comprehensive products and services, despite operating in a highly competitive market.
Verisk Financial Buyout Backs TransUnion (TRU), Low Liquidity
According to Zacks analysts, the acquisition of Verisk Financial is helping TransUnion offer enhanced solutions and improve fraud prevention and risk management. Poor liquidity remains a concern.
Solid bookings and fleet expansion to support Royal Caribbean (RCL)
Analysts at Zacks say Royal Caribbean is likely to benefit from strong bookings, easing of COVID-related protocols and digital innovation. Also, the focus on fleet expansion efforts is a good sign.
Viper Energy (VNOM) is banking on acreage in the oil-rich Permian Basin
Sachs analysts are optimistic about Eagle Ford and Viper Energy’s 26,789 acres of net royalties in the Permian Basin, which will boost oil production. Still, its massive debt burden is alarming.
new upgrade
Nutrition segment driving growth for Archer Daniel’s (ADM)
Archer Daniels is benefiting from its strength in the nutrition sector due to continued demand in the human nutrition sector, according to analysts at Zachs. The unit sees her 15-20% operating profit growth in 2022.
Gas Utility Sector Strengths to Benefit MRC Global (MRC)
Analysts at Zacks said MRC Global is poised to benefit from multiple contract wins from the nation’s largest gas utility, as well as new homebuilding activity in its gas business.
EverQuote (EVER) boasts revenue growth and a solid balance sheet
According to Zacks analysts, consumer traffic, volume of quote requests and innovative advertiser products and services drive EverQuote’s revenue. Its strong balance sheet enables it to meet its obligations.
new downgrade
Using Clean Fuels, JV Termination Ail Arch Resources (ARCH)
Analysts at Zacks said Arch Resources’ outlook has been impacted by increased use of clean fuels, and the termination of its joint venture agreement with Peabody Energy could hamper growth prospects.
InterDigital (IDCC) is plagued by margin issues and consolidation risks
Zacks analysts say high R&D costs driven by technologically obsolete products are squeezing InterDigital’s profit margins, and a spate of acquisitions is increasing integration risks.
Supply chain woes and heavy debt hurt Itron (ITRI)
Zacks analysts say Itron’s performance has been impacted by unexpected supplier terminations and inadequate component deliveries. Intense competition and a leveraged balance sheet are additional concerns.
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Moody’s Corporation (MCO): Free Stock Analysis Report
Procter & Gamble Company The (PG) : Free Inventory Analysis Report
Walmart Inc. (WMT) : Free Inventory Analysis Report
Cisco Systems, Inc. (CSCO): Free Stock Analysis Report
Berkshire Hathaway Inc. (BRK.B): Free Stock Analysis Report
Zoetis Inc. (ZTS): Free Stock Analysis Report
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