Top Research Reports for Berkshire Hathaway, Procter & Gamble & Adobe

Wednesday, April 3, 2024

The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Berkshire Hathaway Inc. (BRK.B), The Procter & Gamble Company (PG) and Adobe Inc. (ADBE). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.

You can see all of today’s research reports here >>>

Berkshire Hathaway shares have outperformed the Zacks Finance sector over the past year (+36.2% vs. +25.1%) as well as the broader S&P 500 index (+36.2% vs. +24.9%). The company is one of the largest property and casualty insurance companies with numerous diverse business activities. A strong cash position supports earnings-accretive bolt-on buyouts and is indicative of its financial flexibility.

Continued insurance business growth fuels increase in float, drive earnings and generates maximum return on equity. The non-insurance businesses have also been doing well in the last few years. The addition of Pilot Travel Centers (PTC) has strengthened its energy business. A sturdy capital level provides further impetus.

However, exposure to cat loss induces earnings volatility and also affects the underwriting results. Huge capital expenditure remains a headwind. With the demise of Charles Munger, uncertainty looms over the company's performance.

(You can read the full research report on Berkshire Hathaway here >>>)

Shares of Procter & Gamble have outperformed the Zacks Soap and Cleaning Materials industry over the past year (+9.6% vs. +8.2%). The company has been gaining from robust pricing and a favorable mix, along with strength across segments.

It has been focused on productivity and cost-saving plans to boost margins. This led to bottom line beating the consensus mark for the sixth consecutive quarter in the second quarter of fiscal 2024. Consequently, PG has provided an optimistic fiscal 2024 view.

However, the company has been witnessing supply-chain issues, higher SG&A costs, higher transportation costs and rising inflation. Its significant international presence exposes it to foreign currency risks, which acts as a headwind.

(You can read the full research report on Procter & Gamble here >>>)

Adobe shares have gained +29.6% over the past year against the Zacks Computer - Software industry’s gain of +43.8%. The company’s fiscal first-quarter 2024 results were driven by strong performance of Creative Cloud, Document Cloud and Adobe Experience Cloud segments.

Further, rising subscription revenues and solid momentum across the mobile apps were positives. Growth in emerging markets, robust online video creation demand and solid adoption of Acrobat remain tailwinds. The company remains optimistic about its strong market position, compelling product lines, continued innovation, strategic acquisitions and solid adoption of cloud applications.

Also, the company’s growing generative AI efforts are a major plus. However, the ongoing tensions between Russia and Ukraine remain headwinds for Digital Media segment. Also, high acquisition expenses do not bode well for its margin expansion.

(You can read the full research report on Adobe here >>>)

Other noteworthy reports we are featuring today include Advanced Micro Devices, Inc. (AMD), AstraZeneca PLC (AZN) and QUALCOMM Incorporated (QCOM).

Director of Research

Sheraz Mian

Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>

Today's Must Read

Solid Insurance Business Aid Berkshire (BRK.B), Cat Loss Ail

P&G's (PG) Productivity & Cost Savings Plan to Aid Margins

Adobe (ADBE) Rides on Growing Adoption of Cloud Applications

Featured Reports

Robust Product Portfolio & Partnerships Aid AMD's Prospects
Per the Zacks analyst, Advanced Micro Devices is benefiting from strong adoption of fourth gen EPYC processor. Moreover, alliances with Meta, Amazon and Oracle, bode well.

Key Drugs Aid AstraZeneca (AZN) Sales; Pipeline Strong
The Zacks analyst says that AstraZeneca's key drugs like Lynparza, Tagrisso, Imfinzi, Ultomiris and Farxiga should drive sales. Its pipeline is strong with several phase III data readouts lined up.

Qualcomm (QCOM) Rides on 5G Traction, Healthy IoT Momentum
Per the Zacks analyst, Qualcomm is likely to benefit from the seamless transition from a wireless communications firm for the mobile industry to a connected processor firm for the intelligent edge.

Alibaba (BABA) Gains From International Commerce Businesses
Per the Zacks analyst, strength across AliExpress' Choice and cross-border-related value-added services is benefiting Alibaba's international commerce retail and wholesale businesses.

Strategic Pacts Aids Walgreens (WBA) Amid Stiff Rivalry
The Zacks analyst is impressed with Walgreens' partnership with TelePharm which expand its tele-pharmacy services and improve access to care. Yet, stiff rivalry remains a concern.

Solid Lab Assets Demand Aid Healthpeak (DOC), High Rates Ail
Per the Zacks Analyst, solid demand for lab assets and rising healthcare expenditure by senior citizens bode well for Healthpeak. However, competition from peers and high interest rates are woes.

H&R Block (HRB) Benefits From Block Horizons 2025 Strategy
Per the Zacks analyst, Block Horizons is expected to help H&R Block deliver sustainable revenue and operating profit growth, improve return on investments, and maintain a strong liquidity position.

New Upgrades

Strong Demand & Cost Optimization to Aid General Motors (GM)
Per the Zacks analyst, General Motors' compelling EV and ICE portfolio, with strong demand for its quality full-size pickups and full-size SUVs, bodes well. A cost reduction program is also beneficial

Robust Construction Activity & Acquisitions Aid EMCOR (EME)
Per the Zacks analyst, EMCOR benefits from robust demand in key sectors like high-tech manufacturing, network & communications, industrial and healthcare. Also, focus on acquisitions bode well.

Murphy USA (MUSA) Gains from Proximity to Walmart Stores
The Zacks analyst likes the proximity of Murphy USA's fuel stations to Walmart supercenters and the consistent traffic that these stores attract, thereby driving above-average fuel sales volume.

New Downgrades

Competition From Clean Fuel Sources Ail Arch Resources (ARCH)
Per the Zacks analyst, Arch Resources' results are adversely impacted as emissions concerns push coal back in comparison with other clean fuel sources. Strict regulations also act as a headwind.

ADTRAN (ADTN) Plagued by Soft Demand in Network Solutions
Per the Zacks analyst, sluggish demand in the Network Solutions segment, macroeconomic challenges and fierce competition from other established players will likely strain ADTRAN's margin.

Elevated Expenses, High Leverage Concern First American (FAF)
Per the Zacks analyst, First American's increase in higher personnel costs, operating expenses induces higher expenses that weigh on margin expansion. High leverage induces rise in interest expense.

Zacks Names #1 Semiconductor Stock

It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.

With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.

See This Stock Now for Free >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

AstraZeneca PLC (AZN) : Free Stock Analysis Report

QUALCOMM Incorporated (QCOM) : Free Stock Analysis Report

Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report

Procter & Gamble Company (The) (PG) : Free Stock Analysis Report

Berkshire Hathaway Inc. (BRK.B) : Free Stock Analysis Report

Adobe Inc. (ADBE) : Free Stock Analysis Report

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Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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