For immediate release
Chicago, IL – May 20, 2022 – Zacks.com announces the list of stocks featured in the analyst blog. Every day, Zacks Equity Research analysts discuss the latest news and events impacting stocks and financial markets. Stocks recently featured in the blog include: Apple Inc. AAPL, Berkshire Hathaway Inc. (BRK.B), S&P Global Inc. SPGI, Comcast Corp. CMCSA and Cigna Corp. THIS
Here are highlights from Thursday’s analyst blog:
Top analyst reports for Apple, Berkshire Hathaway and S&P Global
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 Apple Inc., Berkshire Hathaway Inc. and S&P Global Inc. These research reports have been handpicked from the approximately 70 reports published by our team of analysts today.
You can see all today’s research reports here >>>
Apple shares are down -18% year-to-date, slightly underperforming the broader market’s -16.2% decline, but held up better than the -26.7% pullback of the Zacks Tech sector. While overall sentiment across the entire space remains negative, Apple remains well positioned given services momentum and robust performance from iPhone, Mac, Wearables and a growing App Store ecosystem. expansion.
The availability of the new Mac Studio and the new iPad Air should drive revenue growth. Apple TV+ is gaining recognition with award-winning shows. This bodes well for the Services segment.
However, Apple did not provide revenue guidance for the third quarter of fiscal 2022. Apple expects COVID-induced supply chain disruptions and silicon shortages in the future. ‘industry-wide hurt revenue by $4 billion to $8 billion. Unfavorable exchange conditions as well as the absence of Russian revenues should also harm sales.
Berkshire Hathaway shares have outperformed the Zacks Insurance – P&C sector over the past year (+6.5% vs -0.9%). The company 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 increases, 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.
However, exposure to catastrophe losses induces earnings volatility and also affects Berkshire’s P&C underwriting results. Huge capital expenditure remains a headwind for the business.
Shares of S&P Global are down -11.5% over the past year, compared to a -13.6% drop for the information services sector Zacks Business. The company remains vulnerable to lawsuits, investigations and inquiries regarding the ratings provided, resulting in legal action, damages or fines.
Growth initiatives, higher compensation and incentives increase company expenses. A declining current ratio is undesirable because it indicates that the company may have difficulty meeting its short-term debt obligations. Partly due to these headwinds, the stock has declined over the past year.
However, The Zacks analyst believes S&P Global remains well positioned to benefit from growing demand for business information services. Buyouts help innovate, increase differentiated content, and develop new products. Effective management execution has helped it generate strong cash flow which is being used for growth initiatives. Dividend payouts and share buybacks build investor confidence and have a positive impact on earnings per share.
Other noteworthy reports we’re featuring today include Comcast Corp. and Cigna Corp.
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Past performance is not indicative of future results. The potential for loss is inherent in any investment. This document 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 any investment is suitable for any particular investor. It should not be assumed that investments in the securities, companies, sectors or markets identified and described have been 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 asset management of securities. These returns come from hypothetical portfolios composed of stocks with Zacks Rank = 1 that have been rebalanced monthly without transaction fees. These are not the returns of actual stock portfolios. The S&P 500 is an unmanaged index. To visit https://www.zacks.com/performance for more information on the performance figures displayed in this press release.
Zacks names ‘only one best choice for doubling up’
From thousands of stocks, 5 Zacks experts have each picked their favorite to skyrocket by +100% or more in the coming months. Of these 5, Research Director Sheraz Mian selects one to have the most explosive advantage of all.
It’s a little-known chemical company that’s up 65% year-on-year, but still very cheap. With relentless demand, rising earnings estimates for 2022 and $1.5 billion for stock buybacks, retail investors could jump in at any moment.
This company could rival or surpass other recent Zacks stocks which are expected to double, such as Boston Beer Company which jumped +143.0% in just over 9 months and NVIDIA which jumped +175.9% in one. year.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.