Wednesday, April 3, 2024

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), The Procter & Gamble Company (PG) and Adobe Inc. (ADBE). 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 outperformed the Zacks Finance sector over the past year (+36.2% vs. +25.1%) as well as the broader S&P 500 index (+36.2% vs. +24.9%). The company is one of the largest property and casualty insurance companies with numerous diverse business activities. A strong cash position supports earnings-accretive bolt-on buyouts and is indicative of its financial flexibility.

Continued insurance business growth fuels increase in float, drive earnings and generates maximum return on equity. The non-insurance businesses have also been doing well in the last few years. The addition of Pilot Travel Centers (PTC) has strengthened its energy business. A sturdy capital level provides further impetus.

However, exposure to cat loss induces earnings volatility and also affects the underwriting results. Huge capital expenditure remains a headwind. With the demise of Charles Munger, uncertainty looms over the company's performance.

(You can read the full research report on Berkshire Hathaway here >>>)

Shares of Procter & Gamble have outperformed the Zacks Soap and Cleaning Materials industry over the past year (+9.6% vs. +8.2%). The company has been gaining from robust pricing and a favorable mix, along with strength across segments.

It has been focused on productivity and cost-saving plans to boost margins. This led to bottom line beating the consensus mark for the sixth consecutive quarter in the second quarter of fiscal 2024. Consequently, PG has provided an optimistic fiscal 2024 view.

However, the company has been witnessing supply-chain issues, higher SG&A costs, higher transportation costs and rising inflation. Its significant international presence exposes it to foreign currency risks, which acts as a headwind.

(You can read the full research report on Procter & Gamble here >>>)

Adobe shares have gained +29.6% over the past year against the Zacks Computer - Software industry’s gain of +43.8%. The company’s fiscal first-quarter 2024 results were driven by strong performance of Creative Cloud, Document Cloud and Adobe Experience Cloud segments.

Further, rising subscription revenues and solid momentum across the mobile apps were positives. Growth in emerging markets, robust online video creation demand and solid adoption of Acrobat remain tailwinds. The company remains optimistic about its strong market position, compelling product lines, continued innovation, strategic acquisitions and solid adoption of cloud applications.

Also, the company’s growing generative AI efforts are a major plus. However, the ongoing tensions between Russia and Ukraine remain headwinds for Digital Media segment. Also, high acquisition expenses do not bode well for its margin expansion.

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

Other noteworthy reports we are featuring today include Advanced Micro Devices, Inc. (AMD), AstraZeneca PLC (AZN) and QUALCOMM Incorporated (QCOM).

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>>>