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Top Research Reports for Amazon, Berkshire Hathaway & Thermo Fisher

Mark Vickery
Top Research Reports for Amazon, Berkshire Hathaway & Thermo Fisher

Thursday, March 7, 2019

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 (AMZN), Berkshire Hathaway (BRK.B) and Thermo Fisher (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’s shares have outperformed the broader market in the past year (the stock is up +7.5% vs. the +1.4% increase for the S&P 500 as a whole). The Zacks analyst thinks Amazon continues to ride on its ecommerce dominance. Its aggressive retail strategies, distribution strength and robust Prime remain the key catalysts.

Rapid adoption of Prime owing to its customer benefits and strengthening grocery services is driving its top-line growth. Further, the company’s growing brick and mortar presence is a tailwind. Additionally, Amazon’s continued momentum in AWS remains a major positive.

Increasing AWS regions and its growing adoption will continue to aid Amazon’s cloud momentum. Also, improving Alexa features and the growing number of device compatible with it are expected to aid the company’s momentum in the virtual assistant market.

However, first-quarter 2019 revenue guidance remains disappointing. Rising cloud competition from the likes of Microsoft Azure and Google cloud is a significant headwind. Also, heavy investment in fulfillment centers is a concern.

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

Shares of Strong Buy-ranked Berkshire Hathaway’s shares have outperformed the Zacks Insurance - Property and Casualty industry over the past year (-2.3% vs. -3.3%). Berkshire reported fourth quarter earnings of $5.7 billion, up 71.4% year over year on solid results across all segments. The Zacks analyst thinks the company is poised for growth over the longer-term banking on its sturdy insurance business. Its property and casualty insurance business generate maximum return on equity.

The company’s inorganic growth story remains impressive with strategic acquisitions. A strong cash position allows it to make earnings-accretive bolt-on buyouts. Demand for utilities is expected to rise in the future and drive earnings growth. Continued insurance business growth also fuels increase in float. A sturdy capital level provides further impetus.

However, its exposure to catastrophe loss remains a worry. Huge capital expenses due to railroad operations pose concerns. Capital expenditure is estimated to be $10.5 billion in 2019.

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

Thermo Fisher’s shares have outperformed the Zacks Medical Instruments industry in the past three months (+6% vs. +4.4%). Thermo Fisher ended the fourth quarter 2018 on a promising note, showing strength in all end markets categorized either by customer type or geography.

The company particularly registered solid international performance with strong growth in Asia-Pacific including China. Also, a series of product launches with progress in precision medicine initiatives aided its performance. The Zacks analyst is currently looking forward to the company’s recent purchases of Advanced Bioprocessing business from BD and its initiative to buy Gatan to boost electron microscopy suite.

Even after considering the impact of the company’s impending divestiture of its Anatomical Pathology business, the 2019 guidance looks pretty encouraging. On the flip side, Thermo Fisher’s business segments are getting impacted by unfavorable business mix. Also, competitive headwinds and escalating costs pose a threat.

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

Other noteworthy reports we are featuring today include Vertex Pharmaceuticals (VRTX), Square (SQ) and Public Service Enterprise Group (PEG).

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Mark Vickery
Senior Editor

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) Rides on Prime & AWS Amid Rising Competition

Berkshire (BRK.B) Set to Grow on Solid Insurance Business

Global Business Aids Thermo Fisher (TMO) Amid Rising Costs

Featured Reports

Square (SQ) Rides on Acquisition Benefits, Bitcoin Presence

Per the Zacks analyst, Weebly and Zesty buyouts are aiding Square's subscription and services revenues. Also, rising bitcoin revenues owing to growing adoption of Cash App remains positive.

Regular Investments Aids PSEG (PEG), Operational Risks Hurt

Per the Zacks analyst, PSEG's regular investments in infra projects bolsters its growth prospects.

Higher Operating Costs to Hurt Dollar Tree's (DLTR) Margins

Per the Zacks analyst, cost pressures from higher domestic freight and investment in store wages is hurting Dollar Tree's margins.

Cheniere Energy's (LNG) Gas Export Dominance Bodes Well

The Zacks analyst likes Cheniere's competitive advantage of being the first and dominant natural gas exporter in the U.S. market but is concerned over the huge debt load of $28 billion.

Nutanix (NTNX) Rides On Deal Wins, Competition a Concern

Per the Zacks analyst, Nutanix's continued product launches is helping it expand its customer base, thus driving top line.

Ongoing Investment, Domestic Oil Focus Aid WPX Energy (WPX)

Per the Zacks analyst, WPX Energy's consistent investment to develop high margin Delaware and Williston Basins oil assets will continue to boost its performance.

Business Contracts Drive WABCO (WBC), Rising Expenses a Woe

Per the Zacks analyst, multiple business deals and long-term agreement extensions with companies across key markets drive WABCO's growth.

New Upgrades

Fleet Upgrade & Capacity Discipline Aid GOL Linhas (GOL)

The Zacks analyst appreciates the company's efforts to modernize its fleet. Its focus on capacity discipline should cause improvement in yields. Efforts to reduce debt levels are also encouraging.

Buyouts & New Developments Aids Cousins Properties (CUZ)

The Zacks analyst appreciates Cousins Properties' efforts to buy and develop properties in potential markets. These properties in high-growth Sun Belt markets command high rents, boosting revenues.

Healthcare & Imaging Solutions Growth Aids FUJIFILM (FUJIY)

Per the Zacks analyst, robust performance from the Imaging Solutions and Healthcare & Material Solutions are driving FUJIFILM's top-line growth.

New Downgrades

Weak Backup Business, Higher Costs Hurts j2 Global (JCOM)

Per the Zacks analyst, declining revenues from backup business coupled with higher costs is expected to hurt j2 Global's profitability.

Vertex's (VRTX) Cystic Fibrosis Drugs Face Rising Competition

Though the Zacks analyst is optimistic on Vertex's triple combination cystic fibrosis regimens, rising competitive pressure in the market, with many companies working on the same lines, is a concern.

Recurring Losses, High Debt Bothers Teladoc (TDOC)

Per the Zacks analyst, losses and deficit from investments to acquire clients, building a network of healthcare providers and developing a technology platform are worries.

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Vertex Pharmaceuticals Incorporated (VRTX) : Free Stock Analysis Report
Thermo Fisher Scientific Inc. (TMO) : Free Stock Analysis Report
Square, Inc. (SQ) : Free Stock Analysis Report
Public Service Enterprise Group Incorporated (PEG) : Free Stock Analysis Report
Berkshire Hathaway Inc. (BRK.B) : Free Stock Analysis Report
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
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