Today's Must Read
Solid Insurance Business Aid Berkshire (BRK.B), Cat Loss Ail
Linde's (LIN) Contracts With Minimum Volume Requirements Aid
Monday, January 10, 2022
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 Amazon.com, Inc. (AMZN), Berkshire Hathaway Inc. (BRK.B), and Linde plc (LIN). 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 Amazon have underperformed the S&P 500 over the past year (+4.4% vs. +25.4%), but the Zacks analyst sees the company well positioned for the long run given solid Prime momentum, ultrafast delivery services and strength in its content portfolio.
Strong adoption rate of AWS has been aiding Amazon’s cloud dominance. Expanding AWS services portfolio is continuously helping AMZN in gaining further traction. Amazon’s strong global presence and solid momentum among the small and medium businesses remain tailwinds. Rising expenses due to supply-chain constraints and labor supply shortages remain concerns, though.
Berkshire Hathaway shares have gained +13.8% over the past three months against the Insurance - Property and Casualty industry’s gain of +12.6%. The Zacks analyst believes that Berkshire Hathaway is poised to benefit from strength in its insurance, manufacturing, service and retail businesses, and a disciplined capital management.
A strong cash position supports earnings-accretive bolt-on buyouts and indicates the company's financial flexibility. Continued insurance business growth fuels increase in float, drive earnings and generates maximum return on equity. Exposure to catastrophe loss not also leads to earnings volatility but only affects the property and casualty underwriting results of Berkshire, though.
Shares of Linde have gained +15.8% in the last six months against the Zacks Oil & Gas Field Services industry’s gain of +10.5%. The Zacks analyst believes that with improving industrial productions worldwide, Linde is set to gain from the recovering industrial gas demand.
LIN’s primary products in industrial gases include oxygen, which is used as life support in hospitals. Linde also provides process gases like hydrogen that is being utilized for clean fuels, while its high-purity and specialty gases are employed to manufacture electronics. There has been a steady decline in contractual sale of gas product backlog, however, since the third quarter of 2020. Increasing cost of sales is another concern.
Other noteworthy reports we are featuring today include Texas Instruments Incorporated (TXN), T-Mobile US, Inc. (TMUS) and Caterpillar Inc. (CAT).
Director of Research
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>>>