Top Research Reports for Berkshire Hathaway, Tesla & JPMorgan Chase
Wednesday, May 3, 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), Tesla, Inc. (TSLA) and JPMorgan Chase & Co. (JPM). 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 six months (+13.4% vs. +9.5%). 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.
Berkshire Hathaway continuous 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 Tesla have outperformed the Zacks Automotive - Domestic industry over the year-to-date period (+32.4% vs. -2.5%) on the back of strong momentum in its deliveries, particularly Models 3 and Y.
The Zacks analyst expects deliveries to see an annualized growth of around 38% in 2023. Production ramp-up at gigafactory 4 (in Berlin) and 5 (in Austin) and introduction of new models, including Semi and Cybertruck, are set to support long-term deliveries growth.
Additionally, Tesla’s energy generation and storage revenues outlook is promising. Falling debt levels is another positive. While inflation and economic concerns could pose near-term challenges, we expect Tesla to deliver outsized returns in the long run on the back of output ramp-up and introduction of new models.
(You can read the full research report on Tesla here >>>)
Shares of JPMorgan Chase have outperformed the Zacks Banks - Major Regional industry over the past year (+12.3% vs. -13.5%). The company acquired failed First Republic Bank for $10.6 billion, which is expected to be accretive to earnings. The deal adds almost $173 billion in loans and will increase market share among wealthy clients.
Higher rates, global expansion initiatives and a steady loan demand will support net interest income (NII). Yet, the volatile nature of the capital markets business and higher mortgage rates are likely to make fee income growth challenging.
However, mounting expenses pose a major headwind, and we anticipate the same to rise 6.7% in 2023. Given the potential recession, provisions are likely to keep rising.
(You can read the full research report on JPMorgan Chase here >>>)
Other noteworthy reports we are featuring today include Eli Lilly and Company (LLY), Abbott Laboratories (ABT) and Comcast Corporation (CMCSA).
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) Poised to Grow on Solid Insurance Business
Tesla (TSLA) Rides High on Robust Model 3/Y Deliveries
Acquisitions, High Rates Aid JPMorgan (JPM), Fee Income Hurt
Featured Reports
Lilly (LLY) Potential New Products Key to Growth
The Zacks analyst is encouraged Lilly expects to launch four new medicines by 2023 end including Mounjaro (launched). Mounjaro's sales are already benefiting from strong demand trends
EPD Sales Gain Aids Abbott (ABT) amid Inflationary Issues
The Zacks analyst is upbeat about Abbott's Established Pharmaceuticals sales growth in key emerging markets on several therapeutic areas. Yet, stubborn global inflation has impacted profitability.
Wireless Subscriber Gain Drives Comcast's (CMCSA) Prospects
Per the Zacks Analyst, Comcast benefits from an expanding wireless subscriber base as well as strong adoption of Xfinity Mobile and Peacock.
Expanding LNG & Clean Energy Assets Aid TotalEnergies (TTE)
Per the Zacks analyst TotalEnergies's presence in entire LNG value chain and expansion of clean energy generation through joint venture and acquisition will boost its performance.
Mondelez (MDLZ) Gains on Solid Chocolate & Biscuit Categories
Per the Zacks analyst, Mondelez has been gaining on its focus on expanding the core chocolate & biscuit categories. Both these categories registered double-digit growth in the first quarter of 2023.
Focused Differentiation Aids Waste Management (WM), Debt High
Per the Zacks analyst, differentiation through capitalization of extensive assets ensures long-term profitable growth for Waste Management. A debt-heavy balance sheet remains a concern.
FUJIFILM (FUJIY) To Benefit From Strong Product Portfolio
Per the Zacks analyst, FUJIFILM's performance benefitted from strong revenue growth across all business segments. However, stiff competition is a major headwind.
New Upgrades
NVR Benefits from Solid Business Model & Stable Liquidity
Per the Zacks analyst, NVR has been benefiting from solid business model which focuses on maximizing liquidity and minimizing risk. Also, high liquidity adds to the tailwind.
Expanding Diagnosis & Treatment Portfolio Aids Philips (PHG)
Per the Zacks analyst, Philips continues to benefit from growing Diagnosis & Treatment business on the back of partnerships, expanding geographical coverage and innovative solutions.
AptarGroup (ATR) Rides on Solid Demand and Innovation
Per the Zacks analyst, AptarGroup will gain from demand in its end markets and innovative product rollouts. Efforts to expand geographic presence and product offerings through acquisitions bode well.
New Downgrades
Regulations & International Exposure Ail NRG Energy (NRG)
Per the Zacks analyst, NRG Energy's international operations exposes it to political and economic risks and adherence to extensive regulations to will increase expenses and impact margins.
High Capital Spending to Hurt Helmerich & Payne (HP)
The Zacks analyst believes that Helmerich & Payne's estimated capital outlay for fiscal 2023 is on the higher side and might act as a drag on the bottom line.
Nabors (NBR) Weighed Down by Massive Debt Burden
The Zacks analyst believes that Nabors Industries' high debt-to-capitalization of 81.4% is a concern, as it restricts the company's financial freedom to tap into growth opportunities.
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
JPMorgan Chase & Co. (JPM) : Free Stock Analysis Report
Abbott Laboratories (ABT) : Free Stock Analysis Report
Comcast Corporation (CMCSA) : Free Stock Analysis Report
Eli Lilly and Company (LLY) : Free Stock Analysis Report
Berkshire Hathaway Inc. (BRK.B) : Free Stock Analysis Report
Tesla, Inc. (TSLA) : Free Stock Analysis Report
