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Top Research Reports for Berkshire Hathaway, Intel & American Tower

Mark Vickery

Monday, June 29, 2020

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), Intel (INTC) and American Tower (AMT). 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 over the past year (-18.3% vs. -19.4%). The Zacks analyst believes that Berkshire's inorganic growth story remains impressive with strategic acquisitions.

A strong cash position supports earnings-accretive bolt-on buyouts and indicates its financial flexibility. Continued 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. Also, huge capital expenditure remains a headwind. 

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

Shares of Intel have lost -3.6% over the past six months against the Zacks General Semiconductor industry’s rise of +13%. The Zacks analyst believes that Intel is benefiting from momentum across both PC-centric and Data-centric domains.

Robust mix of high-performance second-generation Xeon Scalable processors and solid demand from Cloud service providers are expected to drive near-term growth. Moreover, the company is making advancements in the IoT space, courtesy of product introductions and tie ups. Additionally, Intel is witnessing strong momentum for its first 10-nanometer (nm) mobile CPU.

Notably, the company has not provided 2020 guidance citing coronavirus crisis-induced business uncertainty. Also, declining PC total addressable market, higher expenses pertaining to 10-nm ramp up and constrained supply amid coronavirus outbreak remain concerns.

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

American Tower’s shares have gained +6.9% over the past three months against the Zacks REIT and Equity Trust industry’s rise of +7.4%. The Zacks analyst believes that the increasing demand for the company’s telecom towers will likely continue to support American Tower’s leasing activities and drive organic tenant-billing growth over the long term.

Moreover, the company is expanding its international presence, opening growth avenues. American Tower also remains committed to increase shareholder value through dividend hikes.

However, amid the coronavirus-led volatility in foreign currency exchange rates, the company lowered the 2020 outlook. Additionally, consolidation trends in the telecom sector is concerning. Furthermore, stiff competition in the tower industry is a headwind.  

(You can read the full research report on American Tower here >>>)

Other noteworthy reports we are featuring today include NextEra Energy (NEE), Bayer (BAYRY) and Booking Holdings (BKNG).

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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

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

Intel (INTC) Banks on AI-based Alliances & Product Rollouts

Portfolio Expansion Amid 5G Hype Drives American Tower (AMT)

Featured Reports

Investment in Infrastructure and Renewable Aid NextEra (NEE)

Per the Zacks analyst, NextEra's planned investment in the range of $50 to $55B to increase clean electricity generation portfolio and strengthen its infrastructure will boost its profitability.

Bayer (BAYRY) Boasts Strong Portfolio Amidst Competition

Per the Zacks Analyst, Bayer's pharmaceutical products launched over the last few quarters continue to drive top line at the company.

Accommodation Unit Aids Booking Holdings (BKNG) Amid Risks

Per the Zacks analyst, Booking Holdings' expanding alternative accommodation business bodes well for its international and domestic presence.

ADP Rides on Strategic Buyouts Amid Technological Challenges

The Zacks analyst believes that acquisitions help ADP strengthen its position in the HCM market. However, pressure to remain technologically updated to meet varying client demands remains a concern.

Investment Plan Aids Duke Energy (DUK), Commodity Prices Hurt

Per the Zacks Analyst, the company's robust five-year capital plan will drive earnings base growth.

BCE (BCE) Rides on Solid Wireless Traction, 5G Focus

Per the Zacks analyst, BCE is well poised to benefit from solid subscriber additions and 5G deployment in urban cities across Canada.

Strategic Efforts & Solid Balance Sheet Aids MetLife (MET)

Per the Zacks analyst, strategic initiatives have enabled the company to control costs, which is driving margins.

New Upgrades

PartsPoint Buyout & Digital Ramp-up Aid Genuine Parts (GPC)

Acquisition of PartsPoint Group is likely to drive Genuine Parts' growth prospects. The Zacks analyst also appreciates the firm's aggressive e-commerce initiatives, which will further boost sales.

Sunlight Buyout, Hawthorne Unit Aid Scotts Miracle-Gro (SMG)

Per the Zacks analyst, Scotts Miracle-Gro should gain from the synergies of the Sunlight Supply acquisition and strong growth prospects in its Hawthorne unit.

Growth Investments & Rheinhutte Pumpen Buyout to Drive ITT

Per the Zacks analyst, ITT's innovation investments & initiatives to expand its manufacturing automation capabilities will boost its competency. The Rheinhutte Pumpen buyout will lend momentum to it.

New Downgrades

Coronavirus Woes Likely to Mar Carter's (CRI) Earnings in Q2

Per the Zacks analyst, store closures across North America due to the coronavirus outbreak hurt Carter's first-quarter 2020 results.

WESCO (WCC) Hurt by Sluggish Demand & Currency Headwinds

The Zacks analyst believes that contraction in OEM customer base and weak international sales remain major concerns. Also, fluctuations in foreign currency rates will continue hurting WESCO.

Lower Demand, Weak Oilfield Activities Hurt Hi-Crush (HCR)

Per the Zacks analyst, an expected decline in frac sand demand and subdued oilfield activities amid a lower oil price environment are likely to affect the company's margins.

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
NextEra Energy, Inc. (NEE) : Free Stock Analysis Report
Intel Corporation (INTC) : Free Stock Analysis Report
Berkshire Hathaway Inc. (BRK.B) : Free Stock Analysis Report
Booking Holdings Inc. (BKNG) : Free Stock Analysis Report
Bayer Aktiengesellschaft (BAYRY) : Free Stock Analysis Report
American Tower Corporation REIT (AMT) : Free Stock Analysis Report
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