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Research Daily

Monday, November 14 2016

Today's Research Daily features new research reports on 16 major stocks, including Procter & Gamble (PG), Berkshire Hathaway (BRK.B) and Altria (MO).

Procter & Gamble’s shares have gained more than 5% year-to-date. The analyst likes its strong organic sales, which grew 3% in the first quarter, marking the best performance in over two years. The company’s first-quarter earnings and revenues also beat expectations. Productivity improvements and aggressive cost-saving efforts have consistently improved margins with the trend expected to continue going ahead. However, P&G has been struggling to boost market growth over the past few quarters. Negative forex impact, weak volumes, divestures and slowing market growth has also been hurting sales. (You can read the full research report on Procter & Gamble here.)

Berkshire Hathaway’s shares have surged, gaining more than 18% year-to-date. The analyst likes the company’s inorganic story, which remains impressive with strategic acquisitions such as stakes in Apple. Berkshire Hathaway’s third-quarter earnings per share beat expectations. Its strong cash position also allows it to make earnings-accretive bolt-on acquisitions.

A sturdy capital level also adds to overall strength. However, the company’s catastrophe exposure, Buffett’s succession and huge capital expenses on account of railroad operations remain headwinds. (You can read the full research report on Berkshire Hathaway here.)

Altria’s shares have increased by more than 6% year-to-date. The analyst is optimistic about Altria’s subsidiary, Nu Mark LLC, which expanded the distribution of MarkTen XL e-vapor products and Green Smoke e-cigarettes in several lead markets. Altria’s third-quarter earnings surpassed expectations on strong performance by leading premium brands in the core tobacco category.

Overall, the company’s growing market share in the e-cigarette category and efforts to adapt to the evolving consumer trends and develop less harmful alternative tobacco products are encouraging. However, higher fees associated with litigations and the FDA’s anti-smoking campaigns are hurting profitability. (You can read the full research report on Altria here.)

Other noteworthy reports we are featuring today include Pepsi (PEP) and Nordstrom (JWN).

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Sheraz Mian

Director of Research

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