Tuesday, August 8, 2023

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), Booking Holdings Inc. (BKNG) and Cadence Design Systems, Inc. (CDNS). 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 year-to-date period (+17.3% vs. +11.9%). 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 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 >>>)

Booking Holdings shares have outperformed the Zacks Internet - Commerce industry over the past year (+65.7% vs. +5.6%). The company is benefiting from substantial improvement in booking trends as witnessed in the recently concluded second-quarter 2023 results. Rebound in travelling and strong demand is helping in lowering cancellation rate.

Booking Holdings expects room night growth to increase at low double-digit rate on a year-on-year basis in third quarter. Solid growth in domestic bookings is driving growth. Further, the company is experiencing solid momentum in international regions, which is a positive. Strong growth in rental car, airline ticket units and booked room nights is another positive.

Also, solid momentum across the agency, merchant, and advertising and other businesses is a tailwind. Further, strengthening alternative accommodation business and flight capabilities are major positives. However, intensifying competition is a headwind.

(You can read the full research report on Booking Holdings here >>>)

Shares of Cadence Design Systems have outperformed the Zacks Computer - Software industry over the past year (+25.9% vs. +20.6%). The company’s performance benefited from solid customer demand for the company’s diversified product portfolio. Frequent product launches and strategic collaborations are expected to help the company sustain top-line growth.

Among existing products, the company’s Palladium and Protium platform is gaining traction among clients in the hyperscale computing and automotive segments. Going ahead, the company is likely to benefit from customers increasing their research and development (R&D) spending in artificial intelligence (AI) driven automation.

However, higher costs related to R&D are likely to dent margins in the near term. Stiff competition and volatile macroeconomic conditions are concerns.

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

Other noteworthy reports we are featuring today include ICICI Bank Limited (IBN), Marriott International, Inc. (MAR) and Cintas Corporation (CTAS).

Director of Research

Sheraz Mian

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>>>