Thursday, February 24, 2022
 

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), Visa Inc. (V), and Cisco Systems, Inc. (CSCO). 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 outperformed the Zacks Insurance - Property and Casualty industry over the past year (+27.2% vs. +13.5%). The Zacks analyst believes that Berkshire's inorganic growth story remains healthy with strategic acquisitions. A strong cash position supports earnings-accretive bolt-on buyouts and indicates the company's financial flexibility.

Continued insurance business growth fuels increases in float, drives 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 of Berkshire. Huge capital expenditures remain a headwind for the company.
 

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

Shares of Visa have outperformed the Zacks Financial Transaction Services industry over the past year (+1.0% vs. -28.7%). The Zacks analyst believes that numerous buyouts and alliances paved the way for the company’s long-term growth and are consistently driving revenues.
 

Its investments in technology are solidifying its position in the payments market. A shift in payments to the digital mode is a boon too. The coronavirus vaccine rollouts and the gradual revival of consumer confidence will keep driving spending, expanding business volumes in turn. Backed by its strong cash position, it remains committed to boosting its shareholder value. Visa’s balance sheet strength is commendable.
 

However, high operating expenses are pressuring margins. Ramped-up client incentives will dent the top line. Its declining Cash Volume from the Asia Pacific is a concern.
 

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

Shares of Cisco Systems have outperformed the Zacks Computer - Networking industry over the past year (+19.6% vs. +17.6%). The Zacks analyst believes that Cisco’s performance is benefiting from strength in its product portfolio, customer segments and momentum in product order growth. Strength in Webscale business and solid uptake of switching solutions, especially Catalyst 9000 and Meraki offerings, along with robust adoption of the company’s subscription-based offerings were tailwinds.
 

The company is benefiting from healthy uptake of identity and access, advanced threat and unified threat management security solutions amid high growth in Internet traffic. The buyout of Acacia Communications bodes well for the long haul. However, the management cautioned that component shortages and ongoing supply chain issues are expected to persist in the second half of fiscal 2022 and bump up costs. This is likely to dent revenues and margin expansion.
 

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

Other noteworthy reports we are featuring today include Comcast Corp. (CMCSA), CSX Corp. (CSX) and L3Harris Technologies, Inc. (LHX).
 

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>>>