Friday, August 19, 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 Berkshire Hathaway Inc. (BRK.B), Airbnb, Inc. (ABNB) and Dominion Energy, Inc. (D). 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 past year (+5.2% vs. -0.7%). 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 >>>)
Airbnb shares have declined -18.8% over the past year against the Zacks Internet - Content industry’s decline of -32.8%. The company ceased domestic operations in China in the reported quarter. This induced a weak performance in the Asia Pacific region. Further, uncertainties related to the ongoing coronavirus pandemic and rising competition in the online travel booking market remain major concerns.
However, Airbnb reported strong second quarter results, wherein revenues and earnings grew year over year. The top-line was driven by improvement in Nights & Experiences Booked in North America, EMEA and Latin America.
Further, increasing guest demand for non-urban nights drove active listings for non-urban destinations. Continuous recovery in both longer-distance and cross-border travel owing to a reduction in travel restrictions is continuously driving the top-line growth.
(You can read the full research report on Airbnb here >>>)
Dominion Energy shares have outperformed the Zacks Utility - Electric Power industry over the year-to-date basis (+10.7% vs. +8.0%). The company’s planned investment will strengthen its electric and natural gas infrastructure and ensure high-quality services for customers. Contribution from organic as well as inorganic assets will boost its earnings.
The divestiture of Gas Transmission & Storage operations will increase Dominion’s focus on regulated operations. New clean energy projects will help it achieve carbon neutrality by 2050.
However, Dominion's decision to discontinue the Atlantic Coast Pipeline after investing billions of dollars will impact long-term prospects. Risks of operating nuclear power plants and any failure by third-party producers to supply gas could impact profitability.
(You can read the full research report on Dominion Energy here >>>)
Other noteworthy reports we are featuring today include Ford Motor Co. (F) and Ecolab Inc. (ECL).
Today's Must Read
Berkshire (BRK.B) Set to Gain on Solid Insurance Business
Airbnb (ABNB) Banks on Strong Nights & Experiences Bookings
Investment on Infrastructure & Clean Assets Aid Dominion (D)
Brand Strength & Pricing Plans to Aid Colgate's (CL) Sales
Per the Zacks analyst, Colgate has been gaining from brand strength, digital capabilities and bold pricing actions. This led to Q2 organic sales growth for the 14th successive quarter.
Ford (F) Rides on Bold EV Targets & Strong Vehicle Lineup
Ford's robust EV lineup, with Mustang Mach-E, E-Transit and F-150 Lightning, will drive sales, per the Zacks analyst. The production target of 2 million EVs annually by 2026 further boosts optimism.
Business Strength Aids Ecolab (ECL) Amid Stiff Competition
The Zacks analyst is upbeat about Ecolab's consistent delivery of robust results despite its operation in a tough competitive landscape.
Transco Pipeline System Aids Williams (WMB) Amid Debt Woes
While Williams' expansion projects for its core Transco system of pipelines should buoy its revenues and cash flows, the Zacks analyst is worried over the high long-term debt load of $ 20.8 billion.
ZTO Express (ZTO) Benefits From Parcel Volumes, Expenses Ail
The Zacks Analyst believes that increase in parcel volumes aids ZTO Express' express delivery service. However rise in selling, general and administrative expenses continues to bother the bottom line.
Juniper (JNPR) Rides on Solid Demand Trends, Cloud Solutions
Per the Zacks analyst, Juniper is likely to benefit from attractive opportnities across cloud based markets and strong demand for its AI-driven enterprise portfolio.
Halozyme (HALO) Boots Pipeline with Collaboration Deals
Per the Zacks analyst, Halozyme is regularly adding promising new pipeline candidates through collaboration deals, by licensing out its ENHANZE technology to leading pharmaceutical companies.
EPAM Systems (EPAM) Gains From Increase in Digital Spending
Per the Zacks analyst, EPAM Systems is gaining from a strong uptick in spending on digital transformation, which is further helping it grow across all its industry verticals and maximum locations.
Recruiting Efforts, Acquisitions to Aid LPL Financial (LPLA)
Per the Zacks analyst, LPL Financial's recruiting efforts and solid advisor productivity will likely aid advisory revenues. Its inorganic growth efforts make it well poised for top-line improvement.
Robust Loan Growth, High Rates Aid Washington Federal (WAFD)
Per the Zacks analyst, supported by the rise in loan balances, Washington Federal's top line will likely continue improving. Moreover, the recent rate hikes are expected to aid margin growth.
W&T Offshore (WTI) to Get Hurt by Gas Production Volume Dip
The Zacks Analyst is concerned about W&T Offshore's declining natural gas production volumes, which will continue to affect the bottom line. Rising lease operating expenses are also concerning.
Dullness in Home-Furnishings Space Ails Overstock.com (OSTK)
Per the Zacks analyst, Overstock.com is suffering from weakness in the home-furnishing market. Stiff competition, particularly from Wayfair, its nearest peer in home furnishing, is a concern.
Raw Material & Freight Inflation Hurt Louisiana-Pacific (LPX)
Louisiana-Pacific (LPX) ails from intense inflationary pressure, especially raw material and freight, persistent supply chain woes and higher sales and marketing spends.
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Ford Motor Company (F) : Free Stock Analysis Report
Ecolab Inc. (ECL) : Free Stock Analysis Report
Berkshire Hathaway Inc. (BRK.B) : Free Stock Analysis Report
ColgatePalmolive Company (CL) : Free Stock Analysis Report
Dominion Energy Inc. (D) : Free Stock Analysis Report
Airbnb, Inc. (ABNB) : Free Stock Analysis Report
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