Monday, April 12, 2021
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 (BRK.B), Thermo Fisher Scientific (TMO), and T-Mobile US (TMUS). 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 outperformed the Zacks Insurance – Property and Casualty industry over the past year (+41.7% vs. +30.5%). The Zacks analyst believes that continued insurance business growth fuels increase in float, drive earnings and generates maximum return on equity.
Berkshire’s inorganic growth story remains impressive with strategic acquisitions. A strong cash position supports earnings-accretive bolt-on buyouts and indicates the company’s financial flexibility. The non-insurance businesses are delivering improved results with increased revenues over the past few years.
A sturdy capital level provides further impetus. However, exposure to catastrophe loss induces earnings volatility and also affects the property and casualty underwriting results of Berkshire. Huge capital expenditure remains a headwind for the company.
(You can read the full research report on Berkshire Hathaway here >>>)
Thermo Fisher’s shares have gained +2% over the last six months against the Zacks Medical Instruments industry’s loss of -1%. The Zacks analyst believes that several takeovers including Advanced Bioprocessing buyout from BD and Patheon have helped Thermo Fisher expand its inorganic growth profile.
In terms of end market, pharma and biotech registered growth on robust performance in bioproduction and pharma services in the fourth quarter of 2020. In diagnostics and healthcare, the company experienced exceptionally high demand for COVID-19 testing.
A strong capital structure looks encouraging. However, the coronavirus outbreak has massively disrupted the global supply chain. Foreign currency fluctuations and competitive landscape are major downsides.
(You can read the full research report on Thermo Fisher here >>>)
Shares of T-Mobile have gained +1.3% in the past three months against the Zacks National Wireless industry’s gain of +2.6%. The Zacks analyst believes that T-Mobile operates in a fiercely competitive and almost saturated U.S. telecom market. Also, several promotional activities to lure customers from rivals hurt its profitability.
However, the wireless carrier is confident of its ability to build the largest and fastest 5G network in the United States. Its Extended Range 5G covers 287 million people across 1.6 million square miles. It also covers 125 million people with Ultra Capacity 5G and is on track to reach 200 million by the end of 2021.
T-Mobile is considered the leader with the most Android smartphone customers in the country. It is expanding its Home Internet pilot extensively while preparing to launch the 5G Home Internet service.
(You can read the full research report on T-Mobile here >>>)
Other noteworthy reports we are featuring today include Medtronic (MDT), Philip Morris International (PM) and Square (SQ).
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
See the 5 high-tech stocks now>>
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
Global Business Aids Thermo Fisher (TMO) Amid Forex Woes
5G Network Strength to Drive T-Mobile (TMUS) Amid Competition
Strong Market Share Gain Aids Medtronic (MDT) Amid Pandemic
The Zacks analyst is upbeat about Medtronic winning share in its various businesses including Coronary and Gastrointestinal arms.
Pricing Aids Phillip Morris (PM), Travel Restrictions Hurt
Per the Zacks analyst, Phillip Morris is likely to gain on its solid pricing, which aided results in the fourth quarter.
Square (SQ) Banks on Solid Cash App Adoption, Bitcoin Growth
Per the Zacks analyst, Square is benefiting from strong Cash App engagement and its growing active customer base.
LNG Focus, Renewable Assets Additions Aid TOTAL (TOT)
Per the Zacks analyst TOTAL’s presence in the entire LNG value chain and expansion of clean energy generation through joint venture and acquisition will boost its performance.
Intuit (INTU) Rides on Product Refresh, Higher Subscriptions
Per the Zacks analyst, Intuit is benefiting from frequent product refreshes, which help it to gain customers. Moreover, an increase in subscriptions is driving stable revenue growth for the company.
Growth Investments Aids ABB Despite Soft Market Demand
Per the Zacks analyst, ABB’s organic growth investments along with diligent cost-cutting actions will boost its competency.
Eni (E) to Ride on Exploration Campaign in Offshore Angola
The Zacks analyst expects Eni’s exploration operations in offshore Angola, which led to numerous discoveries, to increase cash flow. Also, its new GreenIT renewables JV will bolster sustainability.
Cost Control, And Improving Deposits To Aid Deutsche Bank (DB)
Per the Zacks analyst, declining expenses, robust liquidity, and rising deposit balances are likely to support Deutsche Bank’s financials, amid a low interest rate and strict regulatory environment.
Toll Brothers (TOL) Rides on Buyouts & Solid Housing Market
Per the Zacks analyst, favorable housing backdrop, lack of competition in the luxury new home market, and buyout synergies have been driving Toll Brothers.
Viper Energy (VNOM) Banks on Eagle Ford & Permian Acreages
The Zacks analyst believes that Viper Energy Partners will continue to generate strong and steady royalty income from the mineral interests in oil-rich Eagle Ford and Permian acreages.
Soft Store Traffic a Concern for Tapestry’s (TPR) Top Line
Per the Zacks analyst, soft brick-&-mortar traffic, capacity limits, and shipping constraints amid the pandemic are some concerns surrounding Tapestry’s top-line performance.
Soft Global Housing Segment, High Costs Ail Assistant (AIZ)
Per the Zacks analyst, Assurant’s lower revenues from the Global Housing segment due to declines in lender-placed policies and increase in expense remains a drag.
Lower Industrial Demand to Weigh on Ashland (ASH)
According to the Zacks analyst, softer demand across certain industrial end-use markets including construction and energy amid the coronavirus pandemic will hurt its volumes and top line.
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
TMobile US, Inc. (TMUS): Free Stock Analysis Report
Thermo Fisher Scientific Inc. (TMO): Free Stock Analysis Report
Square, Inc. (SQ): Get Free Report
Philip Morris International Inc. (PM): Free Stock Analysis Report
Medtronic PLC (MDT): Get Free Report
Berkshire Hathaway Inc. (BRK.B): Free Stock Analysis Report
To read this article on Zacks.com click here.
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.