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The Zacks Analyst Blog Highlights: Berkshire Hathaway, AT&T, salesforce, Facebook and Freeport-McMoRan

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For Immediate Release

Chicago, IL – April 9, 2019 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Berkshire Hathaway (BRK.B - Free Report) , AT&T (T - Free Report) , salesforce (CRM - Free Report) , Facebook and Freeport-McMoRan (FCX - Free Report) .

Here are highlights from Monday’s Analyst Blog:

Top Research Reports for Berkshire Hathaway, AT&T and salesforce.com

 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, AT&T and salesforce. 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 >>>

Buy-ranked Berkshire Hathaway’s shares have outperformed the Zacks Insurance - Property and Casualty industry over the past year (+5.1% vs. +3.1%). Berkshire reported fourth quarter earnings of $5.7 billion, up 71.4% year over year on solid results across all segments. The Zacks analyst thinks the company is poised for growth over a longer-term banking on sturdy insurance business. Its property and casualty insurance business generate maximum return on equity.

The company’s inorganic growth story remains impressive with strategic acquisitions. A strong cash position allows it to make earnings-accretive bolt-on buyouts. Demand for utilities is expected to rise in the future and drive earnings growth. Continued insurance business growth also fuels increase in float. A sturdy capital level provides further impetus.

However, its exposure to catastrophe loss remains a concern. Huge capital expenses due to railroad operations is a worry. Capital expenditure is estimated to be $10.5 billion in 2019.

Shares of AT&T have decreased -8% in the past year, underperforming the Zacks Wireless National industry's increase of +7.8%. The Zacks analyst thinks AT&T is likely to continue its growth momentum in 2019 as it remains poised to benefit from the impending 5G boom and extended LTE coverage, while focusing on reducing its huge debt burden.

As part of the overhaul process of the newly minted WarnerMedia unit, AT&T intends to consolidate all its affiliates and ad sales groups under a unified platform and focus more on video streaming service. The company also aims to reinvent digital advertising and give a new dimension to its business model with integrated business platforms.

AT&T is facing a steady decline in linear TV subscribers and legacy services. The company’s wireline division is facing losses in access lines due to competitive pressure from voice-over-Internet protocol service providers. As AT&T tries to woo customers with discounts, freebies and cash credits, margin pressures tend to soar.

salesforce’s shares have gained +35.3% in the past year, outperforming the Zacks Computer Software industry, which has gained +28.2% over the same period. The Zacks analyst thinks salesforce is benefiting from strong growth across most of its business segments and deal wins in the international market. Rapid adoption of its diverse cloud offerings given the growing demand for digital transformation remains a key catalyst.

Strengthening relationships with cloud companies like Amazon, Google and IBM are a positive. Additionally, strategic acquisitions like MuleSoft, Datorama and Cloudcraze is helping it to deliver strong growth.

Nevertheless, stiff competition from Oracle and Microsoft is a concern. Currency fluctuations remain a key headwind. Additionally, increasing investments for international expansion and data centers is an overhang on near-term profitability.

Other noteworthy reports we are featuring today include Facebook and Freeport-McMoRan.

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

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