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Research Daily

Sheraz Mian

Top Research Reports for Berkshire Hathaway, Tesla & JPMorgan Chase


Trades from $3

Wednesday, May 3, 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), Tesla, Inc. (TSLA) and JPMorgan Chase & Co. (JPM). 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 six months (+13.4% vs. +9.5%). 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.

Berkshire Hathaway continuous 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 >>>)

Shares of Tesla have outperformed the Zacks Automotive - Domestic industry over the year-to-date period (+32.4% vs. -2.5%) on the back of strong momentum in its deliveries, particularly Models 3 and Y.

The Zacks analyst expects deliveries to see an annualized growth of around 38% in 2023. Production ramp-up at gigafactory 4 (in Berlin) and 5 (in Austin) and introduction of new models, including Semi and Cybertruck, are set to support long-term deliveries growth.

Additionally, Tesla’s energy generation and storage revenues outlook is promising. Falling debt levels is another positive. While inflation and economic concerns could pose near-term challenges, we expect Tesla to deliver outsized returns in the long run on the back of output ramp-up and introduction of new models.

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

Shares of JPMorgan Chase have outperformed the Zacks Banks - Major Regional industry over the past year (+12.3% vs. -13.5%). The company acquired failed First Republic Bank for $10.6 billion, which is expected to be accretive to earnings. The deal adds almost $173 billion in loans and will increase market share among wealthy clients.

Higher rates, global expansion initiatives and a steady loan demand will support net interest income (NII). Yet, the volatile nature of the capital markets business and higher mortgage rates are likely to make fee income growth challenging.

However, mounting expenses pose a major headwind, and we anticipate the same to rise 6.7% in 2023. Given the potential recession, provisions are likely to keep rising.

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

Other noteworthy reports we are featuring today include Eli Lilly and Company (LLY), Abbott Laboratories (ABT) and Comcast Corporation (CMCSA).

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>>>

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