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Top Stock Reports for Berkshire Hathaway, Roche & Thermo Fisher Scientific

Monday, March 27, 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), Roche Holding AG (RHHBY) 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 >>>

Shares of Berkshire Hathaway have modestly outperformed the Zacks Insurance - Property and Casualty industry over the past six months (+9.9% vs. +9.0%). 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 Roche have underperformed the Zacks Large Cap Pharmaceuticals industry over the past year (-29.4% vs. +2.4%). The company’s performance has been average of late as the demand for COVID-19 products declined significantly, even though the diagnostics base business and newer drugs, namely Hemlibra (hemophilia), Ocrevus (multiple sclerosis), Evrysdi (spinal muscular atrophy) and Tecentriq (cancer), maintained momentum.

Sales of Actemra/RoActemra and Ronapreve (COVID-19) are declining with the pandemic weakening in several countries since last year.
However, 2023 is also expected to be a challenging year for the company due to the expected sharp decline in sales of COVID-19 products of roughly CHF 5 billion.

Nevertheless, the uptake of the new eye drug, Vabysmo, was outstanding. The Diagnostics business also remained stable in terms of the growth of its routine business.

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

Shares of Thermo Fisher Scientific have gained +7.8% over the past six months against the Zacks Medical - Instruments industry’s gain of +12.7%. The company’s robust year-over-year revenue growth in the Analytical Instruments and the Laboratory Products and Biopharma Services segments appears promising.

During the fourth quarter, the company opened a new bioanalytical lab in Richmond, VA, to support its clinical research business. The integration of PPD is largely complete and drove strong returns for the shareholders with outstanding execution and business performance throughout the year.

However, revenues within Europe declined in the low teens. The same in Asia Pacific fell in the mid-single digits, while China registered a decline in the mid-single digits. Revenues in the rest of the world declined in high-single digits.

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

Other noteworthy reports we are featuring today include Danaher Corporation (DHR), Mitsubishi UFJ Financial Group, Inc. (MUFG) and Synopsys, Inc. (SNPS).

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) Continues to Gain From Insurance Business


New Drugs Boost Roche (RHHBY), COVID-19 Treatments Decline

Thermo Fisher (TMO) Advances in Bioprocess, End Market Up

Featured Reports

Diagnostics Segment Aids Danaher (DHR), Cost-Inflation Ails
The Zacks analyst is encouraged by strength in the Diagnostics unit due to growth in Cepheid business, Molecular Diagnostics and Leica Biosystems. However, high raw material costs raise concerns.

Strong Balance Sheet Aids Mitsubishi UFJ (MUFG), Expenses Up
Mitsubishi UFJ's strategic buyouts will aid business upgradation plans. Its strong liquidity position will support the finances during economic slowdown.

Synopsys (SNPS) Banks on Strong Product Menu, Contract Wins
Per the Zacks analyst, Synopsys' focus on strengthening its product portfolio is helping it cater to the growing demand in the EDA market. Deal wins at leading semiconductor companies is a tailwind.

High Brand-Value, Strategic Buyouts Aid Public Storage (PSA)
Per the Zacks Analyst, Public Storage to benefit from its high brand value, favorable self-storage industry fundamentals and strategic buyouts. However, rise in vacating volumes might hurt occupancy.

Investments Boost ConEd (ED), Poor Financial Position Ail
Per the Zacks analyst, solid investments aid Consolidated Edison's (ConEd) infrastructural development. Yet its poor financial position might hurt the stock's ability to duly meet its debt obligations

ANSYS' (ANSS) Performance Driven by Robust Product Portfolio
Per the Zacks Analyst, increasing demand for simulation solutions across verticals like aerospace and high tech is driving ANSYS's performance. Stiff competition in this space remains a concern.

High-Quality Eagle Ford Acreage to Aid Magnolia (MGY)
The Zacks analyst believes that Magnolia Oil and Gas' high-quality acreage in the Eagle Ford provides it with attractive economics but is worried over lack of geographic diversification.

New Upgrades

Caesars Entertainment (CZR) Banks on High Occupancy Rate
Per the Zacks analyst, Caesars Entertainment benefits from high occupancy rate, majorly in the Las Vegas Segment, and property development investments.

Maximus (MMS) Gains From Connect Assist & VES Acquisitions
Per the Zacks Analyst, acquisition of Connect Assist fortified Maximus's customer service and digital capabilities. The VES acquisition fast-tracked the company's clinical evolution.

Copa Holdings (CPA) Benefits From Improving Air-Travel Demand
The Zacks Analyst is impressed with the fact that increased air-travel demand is aiding Copa Holdings' top-line performance.

New Downgrades

Supply Chain Woes & Stiff Competition to Hurt Woodward (WWD)
Per the Zacks analyst, Woodward's performance is being affected by increases in material and labour costs related to supply chain woes. Stiff competition is an added concern.

Inflation led Dismal Demand Ails Aaron's (AAN) Performance
Per the Zacks analyst, Aaron's softness in customer demand in its core product categories stemming from continued inflation and other macroeconomic factors are likely to dent 2023 performance.

Inflation & Adverse Currency Ails Newell's (NWL) Performance
Per the Zacks analyst, Newell has been witnessing reduced consumer discretionary spending stemming from inflation and the impact of a stronger dollar. These headwinds are likely to persist in 2023.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Roche Holding AG (RHHBY) : Free Stock Analysis Report

Danaher Corporation (DHR) : Free Stock Analysis Report

Thermo Fisher Scientific Inc. (TMO) : Free Stock Analysis Report

Berkshire Hathaway Inc. (BRK.B) : Free Stock Analysis Report

Synopsys, Inc. (SNPS) : Free Stock Analysis Report

Mitsubishi UFJ Financial Group, Inc. (MUFG) : Free Stock Analysis Report

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Zacks Investment Research