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The Zacks Analyst Blog Highlights: Berkshire Hathaway, Johnson & Johnson, NVIDIA, Booking and Fidelity

Zacks Equity Research

For Immediate Release

Chicago, IL –August 20, 2019 – 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 BRK.B, Johnson & Johnson JNJ, NVIDIA NVDA, Booking Holdings BKNG and Fidelity FIS.

Here are highlights from Monday’s Analyst Blog:

Top Research Reports for Berkshire, J&J and NVIDIA

The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features updated research reports on 12 major stocks, including Berkshire Hathaway, Johnson & Johnson and NVIDIA. These research reports have been hand-picked from roughly 70 reports published by our analyst team today.

You can see all of today’s research reports here >>>

Berkshire Hathaway’s shares have underperformed the Zacks Insurance - Property and Casualty industry in the past year (-4.2% vs. -2.9%). Berkshire Hathaway’s earnings per share of $2.50 decreased 10.9% year over year, due to weak insurance business results. However, the quarter witnessed better revenues and pre-tax income.

The Zacks analyst thinks the company’s inorganic growth story remains impressive with strategic acquisitions. A strong cash position supports earnings-accretive bolt-on buyouts. Demand for utilities is expected to drive earnings growth. Continued insurance business growth also fuels increase in float. Its non-insurance businesses are delivering improved results.

A sturdy capital level provides further impetus. However, its exposure to catastrophe loss remains a concern as its property and casualty insurance business generates maximum return on equity. Huge capital expenses due to railroad operations are a cause for concern.

(You can read the full research report on Berkshire Hathaway here >>>).

Shares of Johnson & Johnson have outperformed the Zacks Large Cap Pharmaceuticals industry so far this year (+1.8% vs. -2.4%). The Zacks analyst thinks J&J is witnessing significant generic/biosimilar headwinds in the Pharma unit in 2019. However, J&J’s sales and earnings growth is expected to accelerate in 202,0 supported by contribution from new drugs like Tremfya and successful label expansion of cancer drugs like Imbruvica and Darzalex and immunology drug, Stelara.

J&J is also making rapid progress with its pipeline and line extensions. It has already gained FDA approval for two new drugs in 2019, Balversa and Spravato. Meanwhile, share buybacks and restructuring initiatives should provide bottom-line support.

Headwinds like biosimilar/generic competition and pricing pressure remain. The talc and opioid litigations are overhangs on the stock.

(You can read the full research report on Johnson & Johnson here >>>).

NVIDIA’s shares have underperformed the Zacks General Semiconductor industry over the past year (down -35.6% vs. -8.4%). NVIDIA delivered solid second-quarter fiscal 2020 wherein both earnings and revenues topped estimates and improved sequentially as well.

The Zacks analyst thinks better-than-expected results can be attributed to strength in the automotive, gaming plus OEM and IP end-markets. Also, increasing deal wins for autonomous vehicle development and the solid uptake of AI-based smart cockpit infotainment solutions are a tailwind. Moreover, the rising traction of GeForce laptops and RTX GPUs in the market is a positive.

Further, the company’s recent acquisition of Mellanox is likely to be its main driver as it will fortify its datacenter footprint and lend a competitive edge. However, the current pause in spending by hyperscale customers persists as an overhang on its data center business. Growing competition from AMD also poses a threat to the company.

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

Other noteworthy reports we are featuring today include Booking Holdings and Fidelity.

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.


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Johnson & Johnson (JNJ) : Free Stock Analysis Report
 
Berkshire Hathaway Inc. (BRK.B) : Free Stock Analysis Report
 
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
 
Fidelity National Information Services, Inc. (FIS) : Free Stock Analysis Report
 
Booking Holdings Inc. (BKNG) : Free Stock Analysis Report
 
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