Today's Must Read
Airbnb (ABNB) Banks on Strong Nights & Experiences Bookings
Investment on Infrastructure & Clean Assets Aid Dominion (D)
Friday, August 19, 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 Berkshire Hathaway Inc. (BRK.B), Airbnb, Inc. (ABNB) and Dominion Energy, Inc. (D). 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 Insurance - Property and Casualty industry over the past year (+5.2% vs. -0.7%). 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 company's 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.
Airbnb shares have declined -18.8% over the past year against the Zacks Internet - Content industry’s decline of -32.8%. The company ceased domestic operations in China in the reported quarter. This induced a weak performance in the Asia Pacific region. Further, uncertainties related to the ongoing coronavirus pandemic and rising competition in the online travel booking market remain major concerns.
However, Airbnb reported strong second quarter results, wherein revenues and earnings grew year over year. The top-line was driven by improvement in Nights & Experiences Booked in North America, EMEA and Latin America.
Further, increasing guest demand for non-urban nights drove active listings for non-urban destinations. Continuous recovery in both longer-distance and cross-border travel owing to a reduction in travel restrictions is continuously driving the top-line growth.
Dominion Energy shares have outperformed the Zacks Utility - Electric Power industry over the year-to-date basis (+10.7% vs. +8.0%). The company’s planned investment will strengthen its electric and natural gas infrastructure and ensure high-quality services for customers. Contribution from organic as well as inorganic assets will boost its earnings.
The divestiture of Gas Transmission & Storage operations will increase Dominion’s focus on regulated operations. New clean energy projects will help it achieve carbon neutrality by 2050.
However, Dominion's decision to discontinue the Atlantic Coast Pipeline after investing billions of dollars will impact long-term prospects. Risks of operating nuclear power plants and any failure by third-party producers to supply gas could impact profitability.
Other noteworthy reports we are featuring today include Ford Motor Co. (F) and Ecolab Inc. (ECL).