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>>>