Tuesday, November 1, 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), Cisco Systems, Inc. (CSCO) and Raytheon Technologies Corporation (RTX). 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 gained +2.5% over the past year against the Zacks Insurance - Property and Casualty industry’s gain of +3.8%. 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.

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

Cisco Systems shares have performed in-line with the Zacks Computer - Networking industry over the past two years (+26.5% vs. +26.3%). The company is benefiting from healthy uptake of identity and access, advanced threat and unified threat management security solutions amid high growth in Internet traffic.

The buyout of Acacia is key catalyst. Cisco’s expanding portfolio with the launch of Silicon One-based 8000 routers, Nexus Cloud, Calisti and Panoptica. Cisco also announced AppDynamics Cloud, a next-gen version of its observability platform for cloud native applications.

Cisco’s investments across its security business, focusing on cloud-based offerings, is expected to drive growth. Cisco provided strong outlook for first-quarter fiscal 2023 and fiscal 2023.

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

Raytheon Technologies shares have outperformed the Zacks Aerospace - Defense Equipment industry over the past year (+8.0% vs. -0.1%). The company continues to receive ample orders for its combat-proven defense products from the Pentagon.

A steady recovery in commercial air traffic has been boosting commercial OEM as well as commercial aftermarket sales for Raytheon in the recent times. The stock holds a solid solvency position yet it is feeling the pinch of economic sanctions imposed by governments in response to Russia’s invasion in Ukraine.

However, a comparative analysis of its trailing 12-month Price/Book ratio reflects a relatively gloomy picture. The appreciating U.S. dollar along with inflationary pressure has been burdening airlines, which may pose a risk to the stock.

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

Other noteworthy reports we are featuring today include Adobe Inc. (ADBE), The TJX Companies, Inc. (TJX), and Bayer Aktiengesellschaft (BAYRY).

Sheraz Mian
 
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>>>