Tuesday, March 9, 2021

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), Oracle (ORCL) and BHP Group (BHP). 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 year (+27.1% vs. +18%) on the back of a strong cash position that supports earnings-accretive bolt-on buyouts as well as sheds light on the company's financial flexibility.

Continued insurance business growth fuels increase in float and drive earnings as well as 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 Oracle have gained +25.8% in the last six months against the Zacks Computer Software industry’s gain of +5.8%. The Zacks analyst believes that Oracle is well-positioned to benefit from momentum seen in cloud business on the back of solid adoption of data cloud solutions, Enterprise Resource Planning (ERP) and Autonomous Database offerings.

Furthermore, strong uptake of cloud-based solutions, comprising NetSuite ERP and Fusion ERP aided revenue growth. Also, solid demand for the Oracle Dedicated Region Cloud@Customer supported by ML is anticipated to drive the top line.

However, increasing spend on product enhancements amid intensifying competition in the cloud market is likely to limit margin expansion.

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

BHP shares have gained +17% over the past three months against the Zacks Mining - Miscellaneous industry’s gain of +25.2%. The Zacks analyst believes that the company will greatly benefit from the rising iron prices on the back of strong demand in China.

Focus on lowering debt will also fuel growth. In fiscal 2021, the company expects to produce 244-255 Mt of iron ore. Efforts to make operations more efficient through smart technology adoption across the entire value chain are likely to lower costs, thereby boosting margins.

BHP Group plans to simplify its coal portfolio and concentrate on higher quality coking coals to capitalize on demand from steelmakers. The company has four major projects under development in petroleum, iron ore and potash, which are expected to drive growth in the long run.

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

Other noteworthy reports we are featuring today include Texas Instruments (TXN), Starbucks (SBUX) and Altria Group (MO).

These Stocks Are Poised to Soar Past the Pandemic

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Sheraz Mian

Director of Research

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>>>