Today's Must Read
Berkshire Hathaway's (BRK.B) Inorganic Growth Impresses
Cognizant's (CTSH) Gain from Digitization to Offset Spending Woes
Thursday, September 29, 2016
Today's Research Daily features new research reports on 16 major stocks, including BP plc (BP), Berkshire Hathaway (BRK.B) and Cognizant (CTSH).
BP plc’s shares have increased by more than 11% year-to-date. The analyst likes the company’s long-term cost cutting plan which has helped it cope with weak commodity prices. In fact, BP has achieved major cost reductions over the last four quarters and it expects the cost structure to improve further. Moreover, the company’s plan to significantly increase its production capacity by 2020 is commendable. But the difficult operating environment – continued weakness in commodity prices and depressed refining margins. (You can read the full research report on BP here.)
Berkshire Hathaway’s shares have gained more than 10% year-to-date. The analyst likes Berkshire Hathaway’s inorganic story, which remains impressive with strategic acquisitions. Recently, the company announced it was buying stakes in Apple, while during the first quarter it increased its holdings in Visa and Bank of New York Mellon. A sturdy capital level adds to the overall strength as well. However, the company’s catastrophe exposure, Buffett’s succession and huge capital expenses on account of its railroad operations remain headwinds. You can read the full research report on Berkshire Hathaway here.)
Cognizant’s shares have been showing some weakness recently. Macroeconomic headwinds and sluggish spending levels in the healthcare and financial sector have been hurting its business. But the analyst still likes the manner in which Cognizant plans to broaden its presence in the digitization market. Apart from this, the company is likely to benefit from strong demand for high quality, lower cost technology services. Also, acquisitions will continue to play an important role in boosting revenues. (You can read the full research report on Cognizant here.)
Other noteworthy reports we are featuring today include eBay (EBAY), E*TRADE (ETFC) and Danaher (DHR).
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You can find all of today's stock research reports here.
Note: Sheraz Mian regularly provides earnings analysis on Zacks.com and appears frequently in the print and electronic media. His weekly earnings related articles include Earnings Trends and Earnings Preview. He also provides weekly commentary to Zacks Premium subscribers and manages the Zacks Focus List and Top 10 portfolios. If you want an email notification each time Sheraz publishes a new article, please