Top Analyst Reports for Berkshire Hathaway, Cisco Systems & Raytheon Technologies

Tuesday, November 1, 2022
 
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), Cisco Systems, Inc. (CSCO) and Raytheon Technologies Corporation (RTX). 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 gained +2.5% over the past year against the Zacks Insurance - Property and Casualty industry’s gain of +3.8%. 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 company's 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.

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 >>>)

Cisco Systems shares have performed in-line with the Zacks Computer - Networking industry over the past two years (+26.5% vs. +26.3%). The company is benefiting from healthy uptake of identity and access, advanced threat and unified threat management security solutions amid high growth in Internet traffic.

The buyout of Acacia is key catalyst. Cisco’s expanding portfolio with the launch of Silicon One-based 8000 routers, Nexus Cloud, Calisti and Panoptica. Cisco also announced AppDynamics Cloud, a next-gen version of its observability platform for cloud native applications.

Cisco’s investments across its security business, focusing on cloud-based offerings, is expected to drive growth. Cisco provided strong outlook for first-quarter fiscal 2023 and fiscal 2023.

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

Raytheon Technologies shares have outperformed the Zacks Aerospace - Defense Equipment industry over the past year (+8.0% vs. -0.1%). The company continues to receive ample orders for its combat-proven defense products from the Pentagon.

A steady recovery in commercial air traffic has been boosting commercial OEM as well as commercial aftermarket sales for Raytheon in the recent times. The stock holds a solid solvency position yet it is feeling the pinch of economic sanctions imposed by governments in response to Russia’s invasion in Ukraine.

However, a comparative analysis of its trailing 12-month Price/Book ratio reflects a relatively gloomy picture. The appreciating U.S. dollar along with inflationary pressure has been burdening airlines, which may pose a risk to the stock.

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

Other noteworthy reports we are featuring today include Adobe Inc. (ADBE), The TJX Companies, Inc. (TJX), and Bayer Aktiengesellschaft (BAYRY).

Sheraz Mian
 
Director of Research

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

Cisco (CSCO) Benefits From Strong Security Products Adoption

Order Growth Aids Raytheon (RTX) Amid Jet Fuel Price Hike

Featured Reports

Adobe (ADBE) Rides on Growing Adoption of Cloud Applications
Per the Zacks analyst, solid momentum across Creative Cloud, Document Cloud and Experience Cloud services is aiding Adobe's cloud business which generates significant amount of revenues.

The TJX Companies (TJX) Gains From Store & E-Commerce Growth
Per the Zacks analyst, The TJX Companies is gaining on its store and e-commerce growth efforts. The company aims at growing its global store base by at least another 1,500 stores in current locations.

Recent Drug Approvals Aid Bayer (BAYRY), Stiff Rivalry a Woe
Per the Zacks analyst, Bayer has undertaken several initiatives to strengthen its portfolio. However, competition from generic threats remains a concern

Higher Production Costs Weigh on Freeport (FCX)
According to the Zacks analyst, higher unit net cash costs per pound of copper resulting from an increase in energy and freight expenses will hurt the company's margins in 2022.

Pinterest (PINS) Poised to Benefit from Holistic Growth
Per the Zacks analyst, Pinterest is poised to benefit from enhanced product offerings, new conversion insights, wider Pinner base and simplified ad systems post the accretive buyout of The Yes.

PerkinElmer's (PKI) Expanding Product Range Offsets Headwinds
Per the Zacks analyst PerkinElmer's expanding product portfolio along with accretive acquisition provides growth opportunity amid unfavorable foreign exchange and a sluggish European macro environment

Strong Rental Demand Aids Ryder (R) Despite Liquidity Woes
The Zacks analyst is impressed with strong rental demand and favorable pricing. Ryder's weak liquidity position is, however, a concern.

New Upgrades

Solid Investments & Rate Base Growth to Aid PG&E Corp (PCG)
Per the Zacks Analyst, solid capital expenditures in infrastructure bode well for PG&E Corp in the long haul. Also, favorable decision from CPUC is expected to boost its rate base growth.

RPC (RES) Banks on Contributions From Technical Services
The Zacks analyst likes RPC since improved customer activity levels and increased pricing are aiding the oilfield service provider's Technical Services business unit.

Core Labs (CLB) to Gain from Low Capital Expenditure Needs
The Zacks analyst likes Core Labs' low capital expenditure needs and service-oriented nature, which differentiates it from peers and allows it to generate substantial free cash flows.

New Downgrades

Low Production & Prices to Hurt Wheaton Precious (WPM)
The Zacks analyst is concerned that Wheaton Precious' results will bear the brunt of lower production levels and the recent downtrend in gold and silver prices.

Forex Volatility, High Debt Concern Manulife Financial (MFC)
Per the Zacks analyst, Manulife Financial has been witnessing increase in financial leverage over the last few years. Foreign exchange volatility raises financial risk.

Inflation & Adverse Currency Ails Newell's (NWL) Performance
Per the Zacks analyst, Newell has been witnessing reduced consumer discretionary spending stemming from inflation and the impact of a stronger dollar. These headwinds are likely to persist in 2022.

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The TJX Companies, Inc. (TJX) : Free Stock Analysis Report
 
Cisco Systems, Inc. (CSCO) : Free Stock Analysis Report
 
Berkshire Hathaway Inc. (BRK.B) : Free Stock Analysis Report
 
Bayer Aktiengesellschaft (BAYRY) : Free Stock Analysis Report
 
Adobe Inc. (ADBE) : Free Stock Analysis Report
 
Raytheon Technologies Corporation (RTX) : Free Stock Analysis Report
 
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