Top Research Reports for Berkshire Hathaway, Walmart, and P&G

Tuesday, January 3, 2023

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), Walmart Inc. (WMT) and The Procter & Gamble Company (PG). 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 >>>

Shares of Berkshire Hathaway have gained +0.2% over the past year against the Zacks Insurance – Property and Casualty industry’s gain of +2.1% and the -21.2% decline in the S&P 500 index. The company is one of the largest property and casualty insurance companies measured by premium volume. Berkshire’s inorganic growth story remains impressive with strategic acquisitions. A strong cash position supports earnings-accretive bolt-on buyouts and indicates the financial flexibility.

Continued insurance business growth fuels increase in float, drive earnings and generates maximum return on equity. The non-insurance businesses are delivering improved results with increased revenues over the past few years. A sturdy capital level provides further impetus.

On the flip side, Berkshire’s name is synonemous with that of Warren Buffett and it is reasonable for investors to be wary of the sustainability of the stock’s impressive performance in the post-Buffett period, whenever that is.

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

Shares of Walmart have declined -0.2% over the past year against the Zacks Retail – Supermarkets industry’s decline of -0.4% and the -21.2% decline in the broader market. The company’s consolidated operating income and earnings per share view still suggest a decline from the year-ago period figures. The company is encountering cost inflation, and expects it to remain elevated.

However, Walmart has been benefiting from its robust omnichannel operations due to its efforts to enhance both store and online experience. Walmart has been particularly gaining from its efforts to boost delivery services through acquisitions and partnerships.

The company’s U.S. comp sales continued to benefit from an increased market share in grocery in the third quarter of fiscal 2023, wherein the top and bottom lines surpassed the Zacks Consensus Estimate and increased year over year. A robust third-quarter show encouraged management to raise its overall guidance for fiscal 2023.

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

Shares of Procter & Gamble have declined -7.3% over the past year against the Zacks Soap and Cleaning Materials industry’s decline of -8.1%, but have held up far better than the broader market’s -21.2% pullback. The company is facing commodity cost inflation, increase in freight costs, product and packaging investments and other impacts hurt margins. Also, it issued a drab fiscal 2023 view due to inflation, higher freight and currency woes.

However, Procter & Gamble posted better-than-expected top and bottom lines in the quarter, wherein revenues beat estimates for the 10th straight time. Sales improved year over year driven by robust pricing and a favorable mix, along with strength across segments.

Improved productivity amid cost headwinds has also aided the results. It witnessed SG&A expense leverage, owing to savings from overhead and marketing expenses, and cost leverage gains due to higher sales and real estate.

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

Other noteworthy reports we are featuring today include Cisco Systems, Inc. (CSCO), Zoetis Inc. (ZTS) and Moody’s Corporation (MCO).

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

Berkshire (BRK.B) Poised to Grow on Solid Insurance Business

Walmart (WMT) Benefits from Impressive E-Commerce Operations

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

Featured Reports

Cisco (CSCO) Benefits From Strong Security Products Adoption
Per Zacks analyst, Cisco is benefiting from a rapidly growing security market driven by robust adoption of identity and access, advanced threat and unified threat management security solutions.

Dermatology, Parasiticides Fuel Zoetis (ZTS), Poultry Weak
Per the Zacks analyst, Zoetis companion animal business driven by Apoquel and Simparica maintains growth amid challenges for poultry products. The launch of innovative products should fuel growth.

Buyouts, Diversification Aid Moody’s (MCO), High Costs Ails
Per the Zacks analyst, synergies from buyouts and efforts to diversify revenues will aid Moody’s. Mounting costs, tough operating backdrop and pricing pressure due to stiff competition are concerns.

Solid Product Suite Aid Avantor (AVTR) Amid Stiff Competition
The Zacks analyst is upbeat about Avantor’s robust product portfolio, including a comprehensive range of products and services, despite its operation in a highly competitive market.

Verisk Financial Buyout Aids TransUnion (TRU), Liquidity Low
Per the Zacks Analyst, the acquisition of Verisk Financial is helping TransUnion to offer enhanced solutions, and improve fraud prevention and risk management. Low liquidity remains a concern.

Solid Bookings & Fleet Expansion to Aid Royal Caribbean (RCL)
Per the Zacks analyst, Royal Caribbean is likely to benefit from solid booking volumes, relaxation in COVID-related protocols and digital innovations. Also, focus on fleet expansion efforts bode well.

Viper Energy (VNOM) Banks On Oil-Rich Permian Basin Acreages
The Zacks analyst is upbeat about Viper Energy’s 26,789 net royalty acres in the Eagle Ford and Permian Basins, which will boost oil production volume. Yet, its massive debt load is concerning.

New Upgrades

Nutrition Segment to Drive Archer Daniel’s (ADM) Growth
Per the Zacks analyst, Archer Daniels gains from strength in the Nutrition segment on continued demand in the human nutrition unit. It expects operating profit growth of 15-20% in 2022 for this unit.

Strength in gas utilities sector to Benefit MRC Global (MRC)
Per the Zacks analyst, MRC Global is poised to gain from several contract wins from the largest gas utilities in the United States and new home construction activities in its gas utilities sector.

EverQuote (EVER) Boasts Revenue Growth, Solid Balance Sheet
Per the Zacks analyst, consumer traffic, quote request volume and innovative advertiser products and services drive EverQuote revenues. Its strong balance sheet enables it to fulfill debt obligations.

New Downgrades

Clean Fuel Use, JV Termination Ail Arch Resources (ARCH)
Per the Zacks analyst, Arch Resources prospects has been impacted by rising usage of clean fuel and termination of joint venture agreement with Peabody Energy might hinder growth prospects.

InterDigital (IDCC) Marred by Margin Woes, Integration Risks
Per the Zacks analyst, high research and development costs due to products with high technological obsolescence strain InterDigital’s margins, while its acquisition spree adds to integration risks.

Supply Chain Woes & High Debt Load to Hurt Itron (ITRI)
Per the Zacks analyst, Itron’s performance is affected due to unexpected supplier decommitments and inadequate component deliveries. Stiff competition and leveraged balance sheet is an added concern.

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Moody’s Corporation (MCO) : Free Stock Analysis Report

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

Walmart Inc. (WMT) : Free Stock 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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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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