Yahoo Finance Top Stock Reports for Berkshire Hathaway, Tesla & Visa
Tuesday, August 6, 2024
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.B), Tesla, Inc. (TSLA) and Visa Inc. (V), as well a micro-cap stock AXIL Brands, Inc. (AXIL). The Zacks microcap research is unique as our research content on these small and under-the-radar companies is the only research of its type in the country.
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’s shares have modestly outperformed the Zacks Insurance - Property and Casualty industry over the year-to-date period (+16.5% vs. +15.4%). 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 an increase in float, drives 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 cat loss induces earnings volatility and also affects underwriting results. Huge capital expenditure remains a headwind. With the demise of Charles Munger, uncertainty looms over the company's performance.
(You can read the full research report on Berkshire Hathaway here >>>)
Shares of Tesla have modestly outperformed the Zacks Automotive - Domestic industry over the past six months (+4.9% vs. +2.0%). The company has been plagued by shrinking automotive margins amid aggressive price cuts and discounts. The company expects its vehicle volume growth rate for 2024 to be noticeably lower than 2023 amid a cooling electric vehicle (EV) market.
With competition intensifying in the EV space, Tesla’s focus on autonomous driving and artificial intelligence (AI) is expected to be a game changer. It aims to launch affordable vehicles, transition into an AI company and is banking on its robotaxi venture.
The expected rollout of Tesla-supervised Full Self Driving (FSD) software in China and Europe by the end of the year will boost prospects. Additionally, TSLA’s Energy Generation and Storage business is thriving. While near-term challenges persist, long-term prospects appear promising, driven by its big bet on driverless software and AI.
(You can read the full research report on Tesla here >>>)
Visa shares have gained +6.8% over the past year against the Zacks Financial Transaction Services industry’s gain of +8.3%. The company’s strategic acquisitions and alliances are fostering long-term growth and consistently driving its revenues.
Visa, fueled by persistent increase in payments, cross-border volumes and sustained investments in technology, is witnessing significant profit growth. The ongoing shift to digital payments is advantageous for Visa, with strong domestic volumes supporting its overall performance. A robust cash position enables the company to enhance shareholder value.
However, elevated operating expenses pose margin challenges. We expect adjusted operating expenses to jump 10.1% in fiscal 2024. It is witnessing a volatile cash volume from the Asia Pacific and CEMEA regions. Moreover, rising client incentives will affect its adjusted revenues.
(You can read the full research report on Visa here >>>)
Shares of AXIL Brands’ have underperformed the Zacks Consumer Products - Staples industry over the past year (-61.6% vs. -12.0%). This microcap company with market capitalization of $27.98 million is witnessing rising operating expenses and declining gross profit margins signal profitability challenges. Inventory management issues and high customer concentration risks add to the concerns.
Increased accounts payable and reduced cash flow from operating activities highlight cash flow volatility. As such, the stock warrants a cautious stance. Nevertheless, AXIL is expanding globally, diversifying revenue streams across the United States, Canada, the EU and Asia.
Strategic initiatives, such as the NASCAR-branded hearing protection product deal with Racing Electronics and a distribution agreement with Kinsey’s, boost market penetration. The strategic share repurchases in March 2024, reducing outstanding shares by 55%, enhance shareholder value. Third-quarter fiscal 2024 revenue growth of 14.4% shows effective sales strategies and business expansion.
(You can read the full research report on AXIL Brands here >>>)
Other noteworthy reports we are featuring today include Morgan Stanley (MS), The Southern Company (SO) and Cognizant Technology Solutions Corporation (CTSH).
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>>>
Today's Must Read
Solid Insurance Business Aid Berkshire (BRK.B), Cat Loss Ail
Big Bets on AV and AI to Drive Tesla's (TSLA) Prospects
Visa (V) Rides on Increasing Payments Volume, Expenses High
Featured Reports
Expansion Efforts Aid Morgan Stanley (MS), High Costs a Woe
Per the Zacks analyst, high rates, strategic alliances and Morgan Stanley's focus on less capital-markets dependent operations will aid financials amid tough operating backdrop and rising expenses.
Southern Company (SO) Buoyed by Regulated Customer Growth
The Zacks analyst believes that the growth in Southern's regulated business customer base will drive revenue growth. But the company's high leverage restricts its financial flexibility.
Cognizant (CTSH) Rides on Acquisitions, Strong Partner Base
Per the Zacks analyst, Cognizant is benefiting from a robust product pipeline that includes a favorable mix of new opportunities.
ANSYS' (ANSS) Performance Driven by Robust Product Portfolio
Per the Zacks Analyst, higher demand for simulation solutions across verticals like aerospace and high tech is driving ANSYS's performance. Increasing expenses and stiff competition are concerning.
Clean Assets, North America Focus Aid Clearway Energy (CWEN)
Per the Zacks analyst, Clearway Energy is expected to gain from its expanding modern clean renewable projects and focus on North America, saves it from currency fluctuation and sovereign risks.
Crysvita & Dojolvi Drive Ultragenyx (RARE), Setbacks a Woe
Per the Zacks Analyst, Ultragenyx's marketed products have been witnessing strong growth year-over-year. However, any pipeline/regulatory setback will hinder the stock's growth potential.
Advanced Energy (AEIS) Rides on Strong Data Center Market
Per the Zacks analyst, Advanced Energy is benefiting from strong demand in data center computing, driven by AI investments
New Upgrades
Robust Pipeline, Unique Platform Aids Exact Sciences (EXAS)
The Zacks analyst is upbeat about Exact Sciences' progress with key pipeline programs, including Cologuard PLUS and MRD testing. Also, its Exact Nexus Platform drives tailored patient engagements.
Pilgrim's Pride (PPC) Benefits From Robust U.S. Operations
Per the Zacks analyst, Pilgrim's Pride is gaining from higher sales in the U.S. Operations for a while. During second-quarter 2024 sales in the region increased 8.9% year over year.
Wolverine's (WWW) Product Initiatives to Boost Market Share
Per the Zacks analyst, Wolverine is actively pursuing a comprehensive strategy to enhance brand portfolio, focusing on Merrell and Saucony brands. These efforts are expected to help gain market share.
New Downgrades
Phillips 66 (PSX) Battles Reduced Profit Amid High Oil Price
Per the Zacks analysts, Phillips 66's refining margins are hit by rising crude costs and volatile feedstock prices. The company's costly long-term projects and debt exposure add to the concern.
Lower Demand & Rising Debt Levels to Ail CNH Industrial (CNH)
Per the Zacks analyst, lower demand in the construction and agriculture industries is likely to decelerate CNH Industrial's top-line growth. Rising debt also remains a concern.
Dismal Contract Sales Ail Marriott Vacations (VAC) Prospects
Per the Zacks analyst, Marriott Vacations operations are likely to be hurt by dismal contract sales and fall in volume per guest. Also, increased expenses are an added concern.
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Morgan Stanley (MS) : Free Stock Analysis Report
Southern Company (The) (SO) : Free Stock Analysis Report
Visa Inc. (V) : Free Stock Analysis Report
Cognizant Technology Solutions Corporation (CTSH) : Free Stock Analysis Report
Berkshire Hathaway Inc. (BRK.B) : Free Stock Analysis Report
Tesla, Inc. (TSLA) : Free Stock Analysis Report
AXIL Brands, Inc. (AXIL): Free Stock Analysis Report
