Highlights from Zacks analyst blog: Berkshire Hathaway, Visa, Novartis, Advanced Micro Devices and Deere

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Chicago, IL – October 29, 2021 – Zacks.com announces the list of stocks featured on the Analysts Blog. Every day, Zacks Equity Research analysts discuss the latest news and events impacting stocks and financial markets. Recent stocks featured in the blog include: Berkshire Hathaway Inc. (BRK.B), Visa Inc. V, Novartis AG NVS, Advanced Micro Devices, Inc. AMD, and Deere & Company DE.

Here are highlights from Thursday’s analyst blog:

Third Quarter Earnings Dashboard and Analyst Reports for Berkshire, Visa and Novartis

Zacks Research Daily features the best research results from our team of analysts. Today’s Research Daily features a real-time update on the current third quarter earnings season, in addition to new research reports on 16 major stocks, including Berkshire Hathaway, Visa and Novartis. 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 >>>

The scorecard (from Thursday October 28)

Including all of this morning’s results, we now have third quarter results for 244 S&P 500 members, or 48.9% of the total index members. Third-quarter total profits for these 244 companies are up + 34.2% from same period last year, with revenues 14.4% higher, with 82.4% beating EPS estimates and 73.8% exceeding income estimates.

Comparing the Q3 results of these 244 index members with what we had seen from the same group of companies in other recent periods, EPS beats the percentage by 82.4% compared to 91% as of over the previous period (Q2 2021), 86.9% in Q1 2021. and a five-year average of 78%.

Third-quarter revenue exceeds the percentage of 73.8%, compared to 87.7% for the same group of companies in the second quarter of 2021, 79.9% in the first quarter of 2021 and the five-year average of 69 , 9%. In other words, not only has growth slowed from the pace in the first half, but the beat percentages are also lower than what we saw in the first half.

Actions of Berkshire Hathaway outperformed the Zacks Insurance – Property & Casualty sector over the past year (+ 42.8% vs. + 34.2%). The company is one of the largest property and casualty insurance companies in terms of premium volume. The Zacks analyst believes that Berkshire’s inorganic growth story remains impressive with strategic acquisitions.

A strong cash position supports accretive business buyouts and indicates the financial flexibility of the business. The continued growth of the insurance business is fueling increased free float, driving earnings and generating maximum return on equity. Non-insurance activities perform better with increased revenues in recent years. A strong level of capital provides additional impetus.

However, exposure to catastrophic losses induces earnings volatility and also affects Berkshire’s property and casualty underwriting results. Huge capital expenditure remains an obstacle for the company.

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

Actions of Visa outperformed Zacks’ financial transaction services business over the past year (+ 16.7% vs. -1.9%). The Zacks analyst believes that numerous acquisitions and alliances have paved the way for the long-term growth of the company and have consistently generated revenue. It continues to invest in technology to strengthen its already leading position in the payments market. The switch to digital payments is also a boon.

The development of the coronavirus vaccine and the gradual upturn in consumer confidence will boost spending, in turn increasing business volumes. On the strength of its strong cash flow, the company remains committed to increasing its shareholder value. However, high operating costs weigh on operating margins. Increased customer incentives will shake up the bottom line. Sluggish cross-border activity due to the pandemic is also looming.

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

Actions of Novartis have underperformed the Zacks Large Cap pharmaceutical industry over the past year (+ 6.0% vs. + 25.4%), however, things appear to be improving for them. Zacks analyst believes strong momentum in key brands such as psoriasis drug Cosentyx, Entresto, gene therapy Zolgensma, oncology portfolio and Kesimpta launch should boost Novartis performance in the short term .

The launch of additional drugs like Piqray and Mayzent are expected to further boost sales. The struggling Sandoz business is also showing signs of recovery as business begins to stabilize. However, some units of the oncology and generics activities are still affected by the COVID-19 pandemic. Generic competition for key drugs also remains a concern.

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

Other noteworthy reports we feature today include Advanced Micro Devices and Deere.

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Zacks investment research

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Past performance is no guarantee of future results. The potential for loss is inherent in any investment. This material is provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold any security. No recommendation or advice is given as to whether an investment is suitable for a particular investor. It should not be assumed that any investment in any identified and described securities, companies, sectors or markets was or will be profitable. All information is current as of the date hereof and is subject to change without notice. The views or opinions expressed may not reflect those of the company as a whole. Zacks Investment Research does not engage in investment banking, market making or securities asset management activities. These returns come from hypothetical portfolios composed of stocks with a Zacks rank = 1 that have been rebalanced monthly without any transaction costs. These are not the returns of actual equity portfolios. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for more information on the performance numbers displayed in this press release.

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Click to get this free report

Novartis AG (NVS): free stock analysis report

Advanced Micro Devices, Inc. (AMD): Free Stock Analysis Report

Visa Inc. (V): Free Stock Analysis Report

Deere & Company (DE): Free Inventory Analysis Report

Berkshire Hathaway Inc. (BRK.B): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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