Tuesday, July 20, 2021
Zacks Research Daily features the best research results from our team of analysts. Today’s Research Daily features new research reports on 16 major stocks, including Berkshire Hathaway (BRK.B), PayPal Holdings (PYPL) and Procter & Gamble (PG). These research reports were handpicked from the roughly 70 reports released by our team of analysts today.
You can see all today’s research reports here >>>
Actions of Berkshire Hathaway outperformed the Zacks Insurance – Property & Casualty sector over the past year (+ 41.8% vs. + 29.9%). Zacks analyst believes that a strong cash position not only reflects on its financial flexibility, but also supports profit-generating share buybacks.
Berkshire has also benefited from continued growth in its insurance business, which in turn has boosted earnings and generated maximum return on equity. The non-insurance activities have also performed better with increased revenues in recent years. However, exposure to catastrophic losses induces earnings volatility and also affects Berkshire’s property and casualty underwriting results.
(You can read the full research report on Berkshire Hathaway here >>>)
Pay Pal stocks have gained + 18.6% in the past six months compared to a loss of -10.2% for Zacks’ internet software industry. Zacks analyst believes PayPal has enjoyed robust growth in total payment volume thanks to the net increase in new active accounts.
Improving Venmo’s monetization efforts and increasing adoption rate across various platforms contributed to the overall growth in active accounts. Strong momentum from leading peer to peer and PayPal Checkout experiences remains positive. The increase in reserves for credit losses due to macroeconomic projections due to the pandemic is a major concern. Another concern for the company is the intensification of competition from digital payments.
(You can read the full PayPal research report here >>>)
Actions of Procter & Gamble gained + 3.7% in the last three months against the gain of + 2.9% of the soap and cleaning materials industry of Zacks. Zacks analyst believes the company has benefited significantly from increased consumer demand for its hand soaps, detergents and surface cleaning products during the pandemic.
Although it has reported surprising profits in recent quarters, revenue has exceeded estimates for the fourth time in a row in the fiscal third quarter. Productivity savings and higher prices helped margins, while strength across all segments boosted sales in the quarter. However, headwinds on currencies and pandemic-related disruptions are expected to impact its FY2021 results.
(You can read the full research report on Procter & Gamble here >>>)
Other notable reports we feature today include Adobe (ADBE), Sanofi (SNY) and caterpillar (CAT).
Note: Sheraz Mian heads Zacks’ equity research department and is a renowned expert on aggregate earnings. He is frequently cited in print and electronic media and publishes the weekly Income trends and Income overview reports. If you would like to receive an email notification every time Sheraz publishes a new article, please click here >>>