Thursday, September 29, 2022
Zacks Research Daily features top research results from our team of analysts. Today’s Research Daily features new research reports on 16 major stocks, including Berkshire Hathaway Inc. (BRK.B), Exxon Mobil Corp. (XOM) and Walmart Inc. (WMT). These research reports have been handpicked from the approximately 70 reports published today by our team of analysts.
You can see all research reports from today here >>>
Berkshire Hathaway stocks have underperformed the Zacks Insurance – P&C sector over the past year (-0.5% vs. +0.4%). The company’s exposure to catastrophe losses induces earnings volatility and also affects Berkshire’s P&C underwriting results. Huge capital expenditures remain a headwind for the company.
However, Berkshire Hathaway is one of the largest P&C insurance companies by premium volume. Berkshire’s inorganic growth story remains impressive with strategic acquisitions. A strong cash position supports earnings accretive top-up buybacks and indicates the company’s financial flexibility.
Continued growth in the insurance business is fueling free float growth, driving earnings and generating maximum return on equity. The non-insurance business is performing better with increased revenues in recent years. A strong level of capital provides further momentum.
(You can read the full Berkshire Hathaway research report here >>>)
Exxon Mobil shares have outperformed industry Zacks Oil and Gas – Integrated – International over the past year (+51.1% vs. +27.2%). The company’s leadership status and an optimal integrated capital structure that has historically produced industry-leading returns make it a relatively low-risk player in the energy sector. The company has made three oil discoveries in the Stabroek Block, which will increase its recoverable resource estimate to 11 billion barrels of oil equivalent.
ExxonMobil also has a strong presence in the prolific Permian Basin, where it expects to increase production volumes by 25% in 2022. The company posted strong second-quarter profits, driven by rising commodity prices and robust use of refineries.
ExxonMobil generated cash flow of $20.9 billion from operations and asset disposals in the second quarter. In addition, its debt exposure is significantly lower than that of other large integrated companies. Therefore, ExxonMobil is considered a favorite energy company to own now.
(You can read the full research report on Exxom Mobil here >>>)
walmart stocks have underperformed the Zacks Retail – Supermarkets industry over the past year (-4.5% vs. -3.0%). The company’s consolidated operating profit and earnings per share suggest a decline from the figures for the prior year period. The company faces cost pressure associated with fuel prices, supply chain and excess inventory. Cost inflation and markdowns hurt its gross margin in the second quarter.
However, Walmart has benefited from its robust omnichannel operations due to its efforts to improve both the in-store and online experience. Walmart has particularly benefited from its efforts to boost delivery services through acquisitions and partnerships.
The company’s U.S. component sales continued to benefit from increased grocery market share in the second quarter of fiscal 2023, where revenue increased year-over-year. other. Management has raised its view of net revenue for fiscal year 2023.
(You can read the full Walmart research report here >>>)
Other noteworthy reports we feature today include Alibaba Group Holding Ltd. (BABA), Accenture plc (ACN) and American Express Co. (AXP).
Note: Sheraz Mian leads the equity research department at Zacks and is a well-known expert on overall earnings. He is frequently quoted in the written and electronic press and publishes the weekly Earnings Trends and Revenue overview reports. If you would like to receive an email notification whenever Sheraz publishes a new article, please click here>>>