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Berkshire Hathaway's Strategic Endeavors to Boost Growth
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PacifiCorp, a unit of Berkshire Hathaway Inc. (BRK.B - Free Report) , recently announced its intention to invest $3.5 billion on clean energy projects, according to a media release. Per reports, the company is likely to put in funds for 3 gigawatts of wind and solar farms. The company will develop 1.1 gigawatts of wind projects, mainly in Wyoming, as well as upgrade 900 megawatts of present wind capacity by 2020. This apart, PacifiCorp will build 859 megawatts of wind power and more than 1 gigawatt of solar farms between 2028 and 2036.
Per sources, PacifiCorp will also begin construction on a 140-mile transmission line to send power from wind farms in southwestern Wyoming.
The announcement of this huge investment reinstates bullishness on clean energy. We remind investors that the prospects of Barack Obama's Clean Power Plan has been lurking in uncertainty since Donald Trump's campaign days when he continuously endorsed fossil fuel (primarily coal). In fact, Trump forged ahead with his plans and signed the Energy Independence Executive Order in the last week of March.
Per the U.S. Energy Information Administration (EIA) release, Wind energy capacity is expected to be 95 GW by year-end 2018. Solar power, with total utility-scale capacity of 31 GW by the end of 2018, is expected to account for 1.4% of total utility-scale electricity generation in the year. Investment in clean energy seems a strategic endeavor by Berkshire Hathaway to capitalize on the opportunity.
In a separate development, a newspaper chain owned by Berkshire Hathaway, announced its decision to do away with about 289 positions. The job cuts are intended to lower cost as advertising and circulation revenues are decreasing. Stiff competition due to the shift toward digitization is likely to the main reason for the waning revenues.
Apparently, Berkshire Hathaway is leaving no stone unturned to ramp up its growth profile. The company increased its investment in Apple (increasing stake fourfold) and in the four biggest U.S. airlines (increasing sevenfold) in Feb 2017, exuding confidence in the improving business environment under the new President.
Shares of this Zacks Rank #3 (Hold) insurer gained 17.79% in a year’s time, outperforming the Zacks categorized Property and Casualty Insurance industry’s increase of 17.12%. We expect Berkshire Hathaway to benefit from its growing Insurance, Manufacturing, Service and Retailing, and Finance and Financial Products segments amid an improving economy. Strategic acquisitions should also boost growth.
Stocks to Consider
Some better-ranked stocks from the insurance industry are American Financial Group, Inc. (AFG - Free Report) , The Progressive Corporation (PGR - Free Report) and Radian Group Inc. (RDN - Free Report) .
American Financial Group engages primarily in P&C insurance with focus on specialized commercial products for businesses. Shares of the company gained 40.72% in a year’s time. The stock sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Progressive offers personal and commercial P&C insurance, and other specialty P&C insurance and related services, primarily in the U.S. Shares of the company gained 12.88% over the last year. The stock has a Zacks Rank #1.
Radian Group supports homebuyers, mortgage lenders, loan servicers and investors with a suite of private mortgage insurance and related risk-management products and services. Shares of the company gained 50.30% in a year’s time. The stock carries a Zacks Rank #2 (Buy).
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Berkshire Hathaway's Strategic Endeavors to Boost Growth
PacifiCorp, a unit of Berkshire Hathaway Inc. (BRK.B - Free Report) , recently announced its intention to invest $3.5 billion on clean energy projects, according to a media release. Per reports, the company is likely to put in funds for 3 gigawatts of wind and solar farms. The company will develop 1.1 gigawatts of wind projects, mainly in Wyoming, as well as upgrade 900 megawatts of present wind capacity by 2020. This apart, PacifiCorp will build 859 megawatts of wind power and more than 1 gigawatt of solar farms between 2028 and 2036.
Per sources, PacifiCorp will also begin construction on a 140-mile transmission line to send power from wind farms in southwestern Wyoming.
The announcement of this huge investment reinstates bullishness on clean energy. We remind investors that the prospects of Barack Obama's Clean Power Plan has been lurking in uncertainty since Donald Trump's campaign days when he continuously endorsed fossil fuel (primarily coal). In fact, Trump forged ahead with his plans and signed the Energy Independence Executive Order in the last week of March.
Per the U.S. Energy Information Administration (EIA) release, Wind energy capacity is expected to be 95 GW by year-end 2018. Solar power, with total utility-scale capacity of 31 GW by the end of 2018, is expected to account for 1.4% of total utility-scale electricity generation in the year. Investment in clean energy seems a strategic endeavor by Berkshire Hathaway to capitalize on the opportunity.
In a separate development, a newspaper chain owned by Berkshire Hathaway, announced its decision to do away with about 289 positions. The job cuts are intended to lower cost as advertising and circulation revenues are decreasing. Stiff competition due to the shift toward digitization is likely to the main reason for the waning revenues.
Apparently, Berkshire Hathaway is leaving no stone unturned to ramp up its growth profile. The company increased its investment in Apple (increasing stake fourfold) and in the four biggest U.S. airlines (increasing sevenfold) in Feb 2017, exuding confidence in the improving business environment under the new President.
Shares of this Zacks Rank #3 (Hold) insurer gained 17.79% in a year’s time, outperforming the Zacks categorized Property and Casualty Insurance industry’s increase of 17.12%. We expect Berkshire Hathaway to benefit from its growing Insurance, Manufacturing, Service and Retailing, and Finance and Financial Products segments amid an improving economy. Strategic acquisitions should also boost growth.
Stocks to Consider
Some better-ranked stocks from the insurance industry are American Financial Group, Inc. (AFG - Free Report) , The Progressive Corporation (PGR - Free Report) and Radian Group Inc. (RDN - Free Report) .
American Financial Group engages primarily in P&C insurance with focus on specialized commercial products for businesses. Shares of the company gained 40.72% in a year’s time. The stock sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Progressive offers personal and commercial P&C insurance, and other specialty P&C insurance and related services, primarily in the U.S. Shares of the company gained 12.88% over the last year. The stock has a Zacks Rank #1.
Radian Group supports homebuyers, mortgage lenders, loan servicers and investors with a suite of private mortgage insurance and related risk-management products and services. Shares of the company gained 50.30% in a year’s time. The stock carries a Zacks Rank #2 (Buy).
Zacks’ Best Private Investment Ideas
In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?
Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>