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Top Research Reports for Berkshire Hathaway, Pfizer & Danaher

Mark Vickery

Tuesday, July 16, 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 Berkshire Hathaway (BRK.B), Pfizer (PFE) and Danaher (DHR). 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’s shares have outperformed the Zacks Insurance - Property and Casualty industry in the past year (+11.2% vs. +10.4%). The Zacks analyst thinks it is poised for growth over the long term on the back of its sturdy insurance business. 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 rise in the future and drive earnings growth.

Continued insurance business growth also fuels its increase in float. The company’s non-insurance businesses are delivering improved results, supporting overall performance. A sturdy capital level provides further impetus.

However, Berkshire Hathaway’s exposure to catastrophe loss remains a concern as its property and casualty insurance business generates maximum return on equity. Also, huge capital expenses due to railroad operations pose a major concern.

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

Shares of Pfizer have underperformed the Zacks Large-Cap Pharmaceuticals industry year to date (-0.9% vs. -2.1%). Pfizer expects continued strong growth of key product franchises, including Ibrance, Eliquis and Xeljanz in 2019. However, the Zacks analyst thinks loss of exclusivity on key drugs in the United States, mainly Lyrica, and currency headwinds will significantly hurt 2019 sales.

Other top-line headwinds are weak sales in the sterile injectables portfolio, pricing pressure and rising competition. To offset the threat of generic competition, Pfizer is strengthening its pipeline. It is well positioned to deliver several potentially innovative drugs in the next five years which can drive long-term growth.

Biosimilars are also expected to contribute to growth in 2019. Estimates have gone down slightly ahead of Q2 earnings release. Pfizer has a positive record of earnings surprises in recent quarters.

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

Danaher’s shares have gained +13% over the past three months, outperforming the Zacks Diversified Operations industry, which has increased +0.2% over the same period. The Zacks analyst thinks sturdier demand for products, Danaher Business System ("DBS") implementation and shareholder-friendly policies will likely bolster profitability going forward.

Also, the acquisition of General Electric's BioPharma business will boost its biologics workflow solutions business. The divestiture of the dental business will improve competency.

However, rising cost of sales and unfavorable movements in foreign currencies might continue to restrict Danaher's growth. For 2019, the company lowered adjusted earnings per share guidance from $4.75-$4.85 to $4.72-$4.80, primarily reflecting dilutive impact of funds raised for the BioPharma buyout. Earnings estimates for 2019 have remained stable in the past 60 days.

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

Other noteworthy reports we are featuring today include Tesla (TSLA), Welltower (WELL) and Cintas (CTAS).

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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

Solid Insurance Business Aids Berkshire (BRK.B), Cat Loss Ails


Pfizer (PFE) to Launch New Drugs Amid Generic Headwinds


Life Sciences Business Drives Danaher (DHR), High Costs Hurt


Featured Reports

Tesla (TSLA) Rides on Model 3 Deliveries Amid High Expenses

Per the Zacks analyst, record Model 3 sedan deliveries are helping Tesla overcome waning sales of Model S. But, huge investments in Model 3, Gigafactory & Supercharger is adding to expenses.

Welltower (WELL) to Grow on Portfolio-Repositioning Efforts

Per the Zacks analyst, Welltower's portfolio-repositioning moves will likely drive long-term sustainability and cash-flow growth. Yet, abundant supply of senior housing assets remains a headwind.

Project Pipeline Aids ReneSola (SOL), Tariff Imposition Hurts

Per the Zacks analyst, ReneSola has a strong pipeline of global projects that positively impacts growth.

Fortinet (FTNT) Rides on Strong Demand for Security Fabric

Per the Zacks analyst, Fortinet is benefiting from strong global demand for Security Fabric offerings which is aided by digital transformation and security refresh cycle across most industries.

Archer Daniels' (ADM) Readiness Program to Bolster Growth

Per the Zacks analyst, Archer Daniels' Readiness goals of business growth, standardized functions and enhanced consumer experience are on track.

New Product Offerings Aid Cintas (CTAS), High Costs Hurt

Per the Zacks analyst, solid performance of Cintas' Uniform Rental & Facility Services segment, supported by improved product offerings should drive revenues.

Energen Buy Boosts Diamondback (FANG) Amid Takeaway Woes

The Zacks analyst believes Diamondback's twin buys of Energen Corp and Ajax Resources should bolster its Permian hold.

New Upgrades

Cost Cuts & Fleet Upgrade Buoy Copa Holdings (CPA)

The Zacks analyst is impressed with Copa Holdings' efforts to modernize its fleet. The company's initiatives to check non-fuel unit costs are encouraging too.

Firdapse Launch Boosts Catalyst (CPRX), Focus on Label Expansion

Per the Zacks analyst, Firdapse had a strong launch and Catalyst's efforts to develop the drug for additional indications appear encouraging given significant commercial potential in target markets.

Debt Reduction, Cost Actions to Aid U.S. Steel (X)

Per the Zacks analyst, U.S. Steel should gain from its actions to improve its cost structure and profitability as part of its asset revitalization program as well as efforts to reduce debt.

New Downgrades

Agilent's (A) Higher Expenses Constrain Margin Expansion

The Zacks analyst notes that heavy expenses on research and development are making margin expansion difficult for Agilent. Also, slowing pharma market and weakness in China remain major concerns.

US-China Trade War to Hurt Wynn Resorts (WYNN)

Per the Zacks analyst, trade war between Beijing and Washington and flagging China property prices, which have adversely impacted the high-end VIP segment, are major concerns for Wynn Resorts.

Dependence on Third Party Assets Ails CNX Resources (CNX)

Per the Zacks analyst, CNX Resources' natural gas business depends on third-party gathering, processing and transportation facilities and any disruption of the same could adversely impact operations.


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Welltower Inc. (WELL) : Free Stock Analysis Report
 
Tesla, Inc. (TSLA) : Free Stock Analysis Report
 
Pfizer Inc. (PFE) : Free Stock Analysis Report
 
Danaher Corporation (DHR) : Free Stock Analysis Report
 
Cintas Corporation (CTAS) : Free Stock Analysis Report
 
Berkshire Hathaway Inc. (BRK.B) : Free Stock Analysis Report
 
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