Tuesday, January 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), Walmart Inc. (WMT) and The Procter & Gamble Company (PG). 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 >>>

Shares of Berkshire Hathaway have gained +0.2% over the past year against the Zacks Insurance - Property and Casualty industry’s gain of +2.1% and the -21.2% decline in the S&P 500 index. 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.

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.

On the flip side, Berkshire's name is synonemous with that of Warren Buffett and it is reasonable for investors to be wary of the sustainability of the stock's impressive performance in the post-Buffett period, whenever that is.

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

Shares of Walmart have declined -0.2% over the past year against the Zacks Retail - Supermarkets industry’s decline of -0.4% and the -21.2% decline in the broader market. The company’s consolidated operating income and earnings per share view still suggest a decline from the year-ago period figures. The company is encountering cost inflation, and expects it to remain elevated.

However, Walmart has been benefiting from its robust omnichannel operations due to its efforts to enhance both store and online experience. Walmart has been particularly gaining from its efforts to boost delivery services through acquisitions and partnerships.

The company’s U.S. comp sales continued to benefit from an increased market share in grocery in the third quarter of fiscal 2023, wherein the top and bottom lines surpassed the Zacks Consensus Estimate and increased year over year. A robust third-quarter show encouraged management to raise its overall guidance for fiscal 2023.

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

Shares of Procter & Gamble have declined -7.3% over the past year against the Zacks Soap and Cleaning Materials industry’s decline of -8.1%, but have held up far better than the broader market's -21.2% pullback. The company is facing commodity cost inflation, increase in freight costs, product and packaging investments and other impacts hurt margins. Also, it issued a drab fiscal 2023 view due to inflation, higher freight and currency woes.

However, Procter & Gamble posted better-than-expected top and bottom lines in the quarter, wherein revenues beat estimates for the 10th straight time. Sales improved year over year driven by robust pricing and a favorable mix, along with strength across segments.

Improved productivity amid cost headwinds has also aided the results. It witnessed SG&A expense leverage, owing to savings from overhead and marketing expenses, and cost leverage gains due to higher sales and real estate.

(You can read the full research report on Procter & Gamble here >>>)

Other noteworthy reports we are featuring today include Cisco Systems, Inc. (CSCO), Zoetis Inc. (ZTS) and Moody's Corporation (MCO).

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>>>