Top Research Reports for Amazon.com, Berkshire Hathaway & Thermo Fisher

Monday, August 1, 2022

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 Amazon.com, Inc. (AMZN), Berkshire Hathaway Inc. (BRK.B) and Thermo Fisher Scientific Inc. (TMO). 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 >>>

Amazon shares have declined -19.0% over the past year against the Zacks Internet - Commerce industry’s decline of -33.4%. The company’s growing expenses due to supply-chain constraints and inflationary pressure remain concerns. Nevertheless, second quarter results were driven by Prime and AWS momentum. Strengthening AWS services portfolio and its growing adoption rate contributed well.

Ultrafast delivery services and expanding content portfolio were beneficial. Strong momentum across Amazon Music was a tailwind. Strengthening relationship with third-party sellers was a positive. Robust advertising business contributed well. Improving Alexa skills along with robust smart home products offerings were tailwinds.

Amazon’s strong global presence and solid momentum among the small and medium businesses remain positives. Growing capabilities in grocery, pharmacy, Amazon Care, Kuiper and Zoox are other positives.

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

Berkshire Hathaway shares have outperformed the Zacks Insurance - Property and Casualty industry over the past year (+8.1% vs. -0.4%). 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 company's 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 >>>)

Thermo Fisher shares have outperformed the Zacks Medical - Instruments industry over the past year (+12.3% vs. -21.9%). The company’s robust year-over-year revenue growth in the Analytical Instruments and the Laboratory Products and Biopharma Services segments appears promising.

Thermo Fisher’s strategic acquisitions of PPD, Inc. and PeproTech raise investors’ confidence. Thermo Fisher’s accelerated investments to expand bioproduction capacity also buoy optimism. The upbeat guidance for 2022 is indicative that this growth momentum will continue.

However, the year-over-year decline in revenues in the Specialty Diagnostics segment is disappointing. The contraction of both margins does not bode well either.

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

Other noteworthy reports we are featuring today include Verizon Communications Inc. (VZ), Advanced Micro Devices, Inc. (AMD), and Anheuser-Busch InBev SA/NV (BUD).

Sheraz Mian
 
Director of Research

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

Amazon (AMZN) Banks on Growing AWS Adoption & Prime Momentum

Solid Insurance Business Aid Berkshire (BRK.B), Cat Loss Ail

Thermo Fisher (TMO) Advances in Bioprocess, End Markets Grow

Featured Reports

Verizon (VZ) Aims to Deter Margin Woes With Attractive Plans
Per the Zacks analyst, Verizon is offering various mix-and-match pricing in both wireless and home broadband plans for customer additions as it is forced to lower guidance on macroeconomic woes.

Robust Product Portfolio & Partnerships Aid AMD's Prospects
Per the Zacks analyst, Advanced Micro Devices is benefiting from strong adoption of EPYC, Ryzen and Radeon processors. Moreover, alliances with Baidu, Amazon and Microsoft, bode well.

Digital Investments Brighten AB InBev's (BUD) Growth Prospects
Per the Zacks analyst, AB InBev's investments in B2B platforms, e-commerce and digital marketing have been aiding growth. It is likely to rapidly grow its digital platform, like BEES and Ze Delivery.

Southern Company (SO) Buoyed by Regulated Customer Growth
The Zacks analyst believes that an increase in Southern's regulated business customer base will support its revenue growth but is concerned over timing and cost overrun of the Vogtle project.

Moderna's (MRNA) Dependence on COVID Vaccine Revenues A Woe
Moderna has boosted its cash resources on the back of robust sales of its COVID vaccine. However, the Zacks Analyst is concerned that lower cases of COVID infections fuel uncertainty for vaccine deman

Infrastructure Investment, Clean Assets Aid Xcel Energy (XEL)
Per the Zacks analyst, Xcel Energy's investment of $26 billion through 2026 to enhance clean electricity generation and strengthen its infrastructure will boost its profitability.

Operating Skills Up Waste Connections (WCN), Liquidity Dips
Per the Zacks analyst, Waste Connections' low-overhead , highly efficient operational structure allows it to penetrate contiguous markets for geographical expansion. Low liquidity remains a concern.

New Upgrades

Range Resources (RRC) Banks On Marcellus Shale Play Assets
The Zacks analyst is impressed by Range Resources' 3,000 undrilled wells in the Marcellus formation of the Appalachian Basin. The wells are likely to provide production for several decades.

Solid Loan Demand, Rising Rates, Fee Income Aid Zions (ZION)
Per the Zacks analyst, robust loan demand, higher interest rates, solid balance sheet and rise in fee income will aid Zions' financials. Its capital deployments seem sustainable on earnings strength.

Plexus (PLXS) Gains from Demand Environment, Program Ramps
Per the Zacks analyst, Plexus will continue to benefit from robust demand environment and new program ramps. Enhanced exposure to newer markets like commercial space and factory automation bode well

New Downgrades

Higher Input Costs, Soft Demand Hurt Sherwin-Williams (SHW)
Per the Zacks analyst, higher raw material costs due to supply disruptions will weigh on the company's sales and margins. Weak demand in Europe and China is also a concern.

Softness in Fitness & Marine Segments Hurts Garmin (GRMN)
Per the Zacks analyst, Garmin is suffering from sluggishness in fitness segment due to weak demand for cycling products and advanced wearables. Also, supply constraints are hurting its marine segment.

Virtu Financial (VIRT) Continues to Grapple With High Costs
Per the Zacks Analyst, Virtu Financial's elevated expenses have been putting pressure on its margins. Also, a decline in market volatility offers it lesser trading and profit opportunities.

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Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
 
Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report
 
Verizon Communications Inc. (VZ) : Free Stock Analysis Report
 
Thermo Fisher Scientific Inc. (TMO) : Free Stock Analysis Report
 
Berkshire Hathaway Inc. (BRK.B) : Free Stock Analysis Report
 
AnheuserBusch InBev SANV (BUD) : Free Stock Analysis Report
 
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