Yahoo Finance Top Analyst Reports for Berkshire Hathaway, T-Mobile US & Intel
Monday, November 6, 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.A), T-Mobile US, Inc. (TMUS) and Intel Corporation (INTC). 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 year-to-date period (+13.9% vs. +10.6%). The company is one of the largest property and casualty insurance companies with numerous diverse business activities. A strong cash position supports earnings-accretive bolt-on buyouts and is indicative of its financial flexibility.
Continued insurance business growth fuels increase in float, drive earnings and generates maximum return on equity. The non-insurance businesses have also been doing well in the last few years. The addition of Pilot Travel Centers (PTC) has strengthened its energy business. 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 T-Mobile US have outperformed the Zacks Wireless National industry over the year-to-date period (+5.4% vs. -2.3%). The company reached its full-year target of covering 300 million Americans with ultra-capacity 5G network two months before its deadline.
Strong emphasis on developing advanced 5G use cases, such as roaming service on a 5G Standalone (SA) network will likely boost commercial prospect. Improvement in Postpaid average revenues per account and a record low postpaid churn rate are tailwinds.
However, management’s strategy of introducing several promotional activities to gain customers is weighing on margins. High debt obligations and macroeconomic challenges remain headwinds. Declining Equipment revenues and weak demand for Prepaid services are impeding the revenue growth.
(You can read the full research report on T-Mobile US here >>>)
Shares of Intel have gained +24.4% over the past six months against the Zacks Semiconductor - General industry’s gain of +39.1%. The company is focusing on establishing an advanced semiconductor manufacturing ecosystem and has expanded global production capabilities under its IDM 2.0 (integrated device manufacturing) strategy.
Market diversification and healthy momentum in data center business are tailwinds. The foundry services are increasingly gaining traction while the launch of glass substrates for advanced packaging of chips is another positive. It reported better-than-expected third-quarter 2023 results with the bottom and top line beating the respective Zacks Consensus Estimate.
However, contraction in the total addressable market across all CPU market segments is a major headwind. Weak demand trends and sluggish recovery in China are hurting sales in Network and Edge Group. Macroeconomic challenges, inventory adjustments and intense market volatility are straining margins.
(You can read the full research report on Intel here >>>)
Other noteworthy reports we are featuring today include BlackRock, Inc. (BLK), 3M Company (MMM) and Yum! Brands, Inc. (YUM).
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
Solid Insurance Business Aid Berkshire (BRK.B), Cat Loss Ail
T-Mobile (TMUS) Rides on Solid Postpaid Customer Growth
Intel (INTC) Rides on Portfolio Strength, Diversification
Featured Reports
Buyouts, AUM Balance Aid BlackRock (BLK), High Costs Ails
Per the Zacks analyst, strategic acquisitions, solid assets under management balance and focus on the active equity business will support BlackRock. However, mounting costs remains a major concern.
Restructuring Actions to Aid 3M (MMM) Amid Weak End Markets
Per the Zacks analyst, strong operational execution, restructuring savings and spending discipline are expected to drive 3M's bottom line. However, weakness across end markets is concerning.
Robust Comps Growth Aids Yum! Brands (YUM), High Costs Hurt
Per the Zacks analyst, robust same-store sales backed by unit growth, digital initiatives and diversified menu offerings aid Yum! Brands. However, high costs and economic risks hurt growth prospects.
Cloudflare (NET) Rides on Product Strength, Acquisitions
Per the Zacks analyst, Cloudflare is gaining from solid contributions of its growth-oriented products, primarily Cloudflare One platform. Strategic buyouts like Area 1 and Vectrix are a positive.
Engine Products Unit Benefits Howmet (HWM) Amid Rising Costs
Per the Zacks analyst, Howmet's Engine Products unit is driven by strength in the commercial aerospace, defense aerospace and industrial gas turbine markets. High operating costs remain a concern.
New Customers, Robust Omnipod 5 Sales Aid Insulet (PODD)
The Zacks analyst is bullish about solid new customer gains and increasing volume growth through the U.S. pharmacy channel of Insulet. Also, the robust global uptake of Omnipod 5 seems encouraging.
Caplyta Sales Boost Intra-Cellular (ITCI), Dependence a Woe
Per the Zacks Analyst, ITCI is witnessing strong Caplyta sales, driven by an increasing prescription rate. However, the company is heavily dependent on Caplyta sales for growth, which is a concern.
New Upgrades
ZTO Express (ZTO) Benefits From Increase in Parcel Volumes
The Zacks Analyst believes that increase in parcel volumes aids ZTO Express' express delivery services unit.
Infrastructure Investments, Clean Assets Aid NiSource (NI)
Per the Zacks analyst, NiSource' investment of around $16 billion through 2028, will strengthen its infrastructure, and adding more clean assets in generation portfolio will drive its performance.
Impressive Subsea Robotics Outlook to Aid Oceaneering (OII)
The Zacks analyst believes that Oceaneering's 'Subsea Robotics' unit, which provides cutting-edge technology solutions for remote working, will continue to experience activity and pricing gains.
New Downgrades
Poor Demand, Supply Chain Issue to Hit Enphase Energy (ENPH)
Per the Zacks analyst, unfavorable demand environment in the U.S. and European solar market affected Enphase's revenue performance. Also, supply chain constraint pose threat to this stock.
Nu Skin (NUS) Revenues Hurt by Volatile Currency Movements
Per the Zacks analyst, Nu Skin remains troubled by unfavorable currency rates. The company's third-quarter revenues were hurt by currency headwinds, and are likely to bear 2-3% adverse impact in 2023.
Lower IT Spending to Hurt Atlassian's (TEAM) Prospects
Per the Zacks Analyst, Atlassian's growth prospects might be hurt by soft IT spending as organizations are pushing back their large IT investment plans amid the macroeconomic headwinds.
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Intel Corporation (INTC) : Free Stock Analysis Report
BlackRock, Inc. (BLK) : Free Stock Analysis Report
3M Company (MMM) : Free Stock Analysis Report
Yum! Brands, Inc. (YUM) : Free Stock Analysis Report
Berkshire Hathaway Inc. (BRK.B) : Free Stock Analysis Report
T-Mobile US, Inc. (TMUS) : Free Stock Analysis Report
