For Immediate Release
Chicago, IL – August 9, 2018 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Berkshire Hathaway Inc. (BRK.B - Free Report) , Apple Inc. (AAPL - Free Report) , The Goldman Sachs Group, Inc. (GS - Free Report) , United Parcel Service Inc. (UPS - Free Report) , Verizon Communications Inc. (VZ - Free Report) and Phillips 66 (PSX - Free Report) .
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
Here are highlights from Wednesday’s Analyst Blog:
Boost Portfolio Returns With These 5 Warren Buffet Picks
The Oracle of Omaha has reason to feel happy. Berkshire Hathaway Inc. posted blowout results on Aug 4, with second-quarter earnings surging 182% year-over-year on a reported basis. Some analysts have been skeptical of these results since it takes into account unrealized gains from the company’s stock portfolio into account.
But Berkshire did show overall improvement during the second quarter. Importantly, the company took a major step by allowing its management to tackle the lingering problem of its massive cash pile.
Earnings Reflects All-Round Strength
Berkshire reported adjusted second-quarter 2018 earnings of $6.9 billion, soaring 67.3% year over year. This improvement was mainly attributable to solid results across all segments. Revenues increased 8.6% year over year to $62.2 billion. Pretax income came in at $15.1 billion, surging 146% year over year. (Read: Berkshire Q2 Earnings Rise on Segmental Strength)
At the reported quarter-end, cash, cash equivalents and the U.S. Treasury bills were approximately $111.1 billion. This represents a quarterly increase of $2 billion. Ultimately, this is a long-standing concern for Berkshire and its shareholders. However, the recently amended buyback program should soon address this issue.
Apple Mints Money for Buffet’s Portfolio
A section of analysts have indicated that since March 2009, Berkshire has failed to significantly outperform the Dow and S&P 500. But this fails to negate the fact that Berkshire has yielded a staggering return of more than 700% since inception. In any case, Buffet believes in purchasing shares of great companies and holding them for a considerable period of time. (Read: 4 Warren Buffett Stocks to Buy in Q2 Earnings)
At this point, Buffet’s largest stake is in Apple Inc. and he has minted billions from this investment. Berkshire mentioned in its second quarter earnings release that its stake in Apple was worth $47.2 billion as of June 30, 2018.
Berkshire has delivered a stunning second quarter earnings performance, reflecting all-round strength. Skeptics think that the stock has failed to outperform the market significantly in recent times. But Berkshire’s long-term performance is outstanding and Buffet retains his legendary reputation as one of Wall Street’s best minds.
Adding some of Buffet’s stock picks to your portfolios makes for a smart move. We have narrowed our search to the following stocks based on a Zacks Rank #2 (Buy) and other relevant metrics. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Apple third-quarter fiscal 2018 results created new records in a seasonally slow period. Earnings of $2.34 per share not only crushed the Zacks Consensus Estimate by 17 cents but also surged 40.4% year over year.
Apple’s expected earnings growth for the current year is 26.8%. The Zacks Consensus Estimate for the current year has improved by 2.5% over the last 30 days.
The Goldman Sachs Group, Inc.’s second-quarter 2018 results recorded a positive earnings surprise of 28.1%, reflecting the highest strong second-quarter net revenues in nine years.
Goldman Sachs’ expected earnings growth for the current year is 26.4%. The Zacks Consensus Estimate for the current year has improved by 7.1% over the last 30 days.
United Parcel Service Inc. reported second-quarter 2018 earnings (excluding 23 cents from non-recurring items) of $1.94 per share, surpassing the Zacks Consensus Estimate of $1.92. Earnings increased 22.8% on a year-over-year basis.
United Parcel’s expected earnings growth for the current year is 20.7%. The Zacks Consensus Estimate for the current year has improved by 0.3% over the last 30 days.
Verizon Communications Inc. continued its solid performance in second-quarter 2018, primarily led by the wireless business. The company recorded healthy top-line growth led by solid service revenues.
Verizon’s projected growth rate for the current year is 24.3%. The Zacks Consensus Estimate for the current year has improved by 1.4% over the last 30 days.
Phillips 66 posted second-quarter 2018 adjusted earnings of $2.80 per share, which surpassed the Zacks Consensus Estimate of $2.16. The bottom line increased from the year-ago quarter’s figure of $1.09. The upside came on the back of higher contribution from all the segments.
Phillips 66’s expected earnings growth for the current year is 72.9%. The Zacks Consensus Estimate for the current year has improved by 8% over the last 30 days.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020. Click here for the 6 trades >>
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1 Stock of the Day pick for free.
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