Yahoo Finance Top Analyst Reports for Berkshire Hathaway, Broadcom & Comcast
Tuesday, October 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), Broadcom Inc. (AVGO) and Comcast Corporation (CMCSA). 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 year-to-date period (+12.7% vs. +8.5%). 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. 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 >>>)
Shares of Broadcom have outperformed the Zacks Electronics - Semiconductors industry over the year-to-date period (+52.1% vs. +40.0%). The company is benefiting from the strong deployment of generative AI by hyperscalers, service providers and enterprises.
Broadcom expects generative AI to contribute more than 25% of semiconductor revenues in fiscal 2024 compared with an estimated 15% in fiscal 2023 and roughly 10% in fiscal 2022. Strong demand for Tomahawk 5, Jericho, 10-gigabit PON and DOCSIS 3.1 with embedded Wi-Fi 6 and 6E aids Broadcom’s prospects.
Expanding portfolio with the launch of the second-gen Wi-Fi 7 wireless connectivity chip is a catalyst. Broadcom expects networking revenues to grow nearly 20% year over year in the fiscal third quarter. Server storage connectivity revenues are expected to be up low single digits year over year.
(You can read the full research report on Broadcom here >>>)
Comcast shares have outperformed the Zacks Cable Television industry over the year-to-date period (+30.1% vs. +18.8%). The company is benefiting from a growing wireless subscriber base as witnessed in the second quarter of 2023. However, broadband user base decreased in the reported quarter. Comcast’s plan to transition to DOCSIS 4.0 is noteworthy.
The technology will help it in expanding much faster and at a lower cost compared to competitors. Recovery in park and movie business bodes well for Comcast’s profitability. Its streaming service Peacock is a key catalyst in driving broadband sales. Strong free cash flow generation ability is noteworthy.
However, Comcast persistently suffers from video-subscriber attrition due to cord cutting. Moreover, broadband prospects are suffering from increased competition from fixed wireless as well as fiber. Additionally, a leveraged balance sheet is a major concern.
(You can read the full research report on Comcast here >>>)
Other noteworthy reports we are featuring today include Oracle Corporation (ORCL), T-Mobile US, Inc. (TMUS) and Vertex Pharmaceuticals Incorporated (VRTX).
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>>>
Today's Must Read
Berkshire (BRK.B) Set to Gain on Solid Insurance Business
Strong Demand for Networking Products Aids Broadcom (AVGO)
Wireless Subscriber Gain Drives Comcast's (CMCSA) Prospects
Featured Reports
Oracle (ORCL) Gains from Cloud Suite Adoption & Partnerships
Per the Zacks analyst, Oracle is benefiting from solid adoption of its cloud infrastructure solutions. Also, partnership with Accenture is helping the company rapidly expand its cloud-based clientele.
T-Mobile (TMUS) Rides on Rising 5G Deployment, Low Churn Rate
Per the Zacks analyst, T-Mobile will likely gain from strong postpaid customer growth with a record-low churn rate. Its dedicated 5G spectrum asset with superior propagation is a positive factor.
Vertex (VRTX) Enjoys a Strong Non-Cystic Fibrosis Pipeline
The Zacks analyst says that though Vertex (VRTX) enjoys strong position in the cystic fibrosis (CF) market, it has a broad non-CF pipeline. Multiple clinical milestones are expected in 2023 and 2024
OrangeData Acquisition Aids Fiserv (FI), Integration Risk Ails
Per the Zacks Analyst, acquisition of OrangeData, a QR-based payment provider is bolstering Fiserv's instant transaction abilities in the Acceptance segment. Integration risks may affect company.
Solid Defense Budget, Air Travel to Benefit TransDigm (TDG)
Per the Zacks analyst, expansionary defense budgetary policy adopted by the U.S. administration should benefit TransDigm. Also recovering air travel should boost its commercial aftermarket revenues.
MPLX Stable Fee-Based Revenues From Long-Term Contracts Aid
MPLX generates stable revenues from diverse midstream energy assets via long-term contracts. Yet, high debt exposure concerns the Zacks analyst.
Strategic Investment and Winchester to Aid Olin (OLN)
Per the Zacks analyst, Olin will gain from its strategic investments in the IT project and growth in military markets in the Winchester unit amid challenges in its chemical operations.
New Upgrades
Robust Data-Center Demand, Expansions to Aid Equinix (EQIX)
Per the Zacks analyst, solid demand for Equinix's assets amid growth in digital infrastructure and cloud adoption, and strategic expansions bode well for long-term growth.
Pilgrim's Pride (PPC) Gains From Robust European Operations
Per the Zacks analyst, Pilgrim's Pride is gaining from higher sales in European operations for a while now. During second-quarter sales in the region increased 5.3% year over year.
ClotTriever and FlowTriever Demand Aid Inari's (NARI) Prospect
Per the Zacks analyst, large market opportunity for ClotTriever and FlowTriever products with untapped demand for safe and effective treatment should continue to drive Inari's growth going forward.
New Downgrades
Concerns Remain for Merck's (MRK) Growth Beyond Keytruda
Though Keytruda will drive Merck's (MRK) sales for the next 2-3 years, the Zacks analyst is concerned about its ability to ahead of blockbuster drug Keytruda's loss of exclusivity later in the decade.
Tight Funding, Macro Woes in China Worry Illumina (ILMN)
The Zacks Analyst is worried about Illumina's core arm getting affected by the constrained funding and cautious purchasing behaviors of its customers. China's local competition is an added concern.
AECOM (ACM) Hurt From Cyclicality & Global Economic Risks
Per the Zacks analyst, AECOM witnesses uncertain global political and economic conditions. Also, its demand is cyclical and is vulnerable to reduction in government and private industrial spending.
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Comcast Corporation (CMCSA) : Free Stock Analysis Report
Berkshire Hathaway Inc. (BRK.B) : Free Stock Analysis Report
Vertex Pharmaceuticals Incorporated (VRTX) : Free Stock Analysis Report
Oracle Corporation (ORCL) : Free Stock Analysis Report
Broadcom Inc. (AVGO) : Free Stock Analysis Report
T-Mobile US, Inc. (TMUS) : Free Stock Analysis Report
