Monday, June 29, 2020
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), Intel (INTC) and American Tower (AMT). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
Berkshire Hathaway’s shares have outperformed the Zacks Insurance – Property and Casualty industry over the past year (-18.3% vs. -19.4%). The Zacks analyst believes that Berkshire’s inorganic growth story remains impressive with strategic acquisitions.
A strong cash position supports earnings-accretive bolt-on buyouts and indicates its 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. Also, huge capital expenditure remains a headwind.
Shares of Intel have lost -3.6% over the past six months against the Zacks General Semiconductor industry’s rise of +13%. The Zacks analyst believes that Intel is benefiting from momentum across both PC-centric and Data-centric domains.
Robust mix of high-performance second-generation Xeon Scalable processors and solid demand from Cloud service providers are expected to drive near-term growth. Moreover, the company is making advancements in the IoT space, courtesy of product introductions and tie ups. Additionally, Intel is witnessing strong momentum for its first 10-nanometer (nm) mobile CPU.
Notably, the company has not provided 2020 guidance citing coronavirus crisis-induced business uncertainty. Also, declining PC total addressable market, higher expenses pertaining to 10-nm ramp up and constrained supply amid coronavirus outbreak remain concerns.
American Tower’s shares have gained +6.9% over the past three months against the Zacks REIT and Equity Trust industry’s rise of +7.4%. The Zacks analyst believes that the increasing demand for the company’s telecom towers will likely continue to support American Tower’s leasing activities and drive organic tenant-billing growth over the long term.
Moreover, the company is expanding its international presence, opening growth avenues. American Tower also remains committed to increase shareholder value through dividend hikes.
However, amid the coronavirus-led volatility in foreign currency exchange rates, the company lowered the 2020 outlook. Additionally, consolidation trends in the telecom sector is concerning. Furthermore, stiff competition in the tower industry is a headwind.
Other noteworthy reports we are featuring today include NextEra Energy (NEE), Bayer (BAYRY) and Booking Holdings (BKNG).
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
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>>>