Top Analyst Reports for Amazon, Berkshire Hathaway & Linde

Monday, January 10, 2022

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 Amazon.com, Inc. (AMZN), Berkshire Hathaway Inc. (BRK.B), and Linde plc (LIN). 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 >>>

Shares of Amazon have underperformed the S&P 500 over the past year (+4.4% vs. +25.4%), but the Zacks analyst sees the company well positioned for the long run given solid Prime momentum, ultrafast delivery services and strength in its content portfolio.

Strong adoption rate of AWS has been aiding Amazon’s cloud dominance. Expanding AWS services portfolio is continuously helping AMZN in gaining further traction. Amazon’s strong global presence and solid momentum among the small and medium businesses remain tailwinds. Rising expenses due to supply-chain constraints and labor supply shortages remain concerns, though.

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

Berkshire Hathaway shares have gained +13.8% over the past three months against the Insurance – Property and Casualty industry’s gain of +12.6%. The Zacks analyst believes that Berkshire Hathaway is poised to benefit from strength in its insurance, manufacturing, service and retail businesses, and a disciplined capital management.   

A strong cash position supports earnings-accretive bolt-on buyouts and indicates the company’s financial flexibility. Continued insurance business growth fuels increase in float, drive earnings and generates maximum return on equity. Exposure to catastrophe loss not also leads to earnings volatility but only affects the property and casualty underwriting results of Berkshire, though.

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

Shares of Linde have gained +15.8% in the last six months against the Zacks Oil & Gas Field Services industry’s gain of +10.5%. The Zacks analyst believes that with improving industrial productions worldwide, Linde is set to gain from the recovering industrial gas demand.

LIN’s primary products in industrial gases include oxygen, which is used as life support in hospitals. Linde also provides process gases like hydrogen that is being utilized for clean fuels, while its high-purity and specialty gases are employed to manufacture electronics. There has been a steady decline in contractual sale of gas product backlog, however, since the third quarter of 2020. Increasing cost of sales is another concern.

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

Other noteworthy reports we are featuring today include Texas Instruments Incorporated (TXN), T-Mobile US, Inc. (TMUS) and Caterpillar Inc. (CAT).

Sheraz Mian

Director of Research

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>>>

Per the Zacks analyst, growth in the personal electronics market owing to coronavirus induced increasing work-from-home trend is benefiting the top-line of Texas Instruments.

Per the Zacks analyst, T-Mobile is likely to benefit from the expansion of the reach of its industry-leading 5G network to bring fast and affordable wireless service across the country.

Per the Zacks analyst, improving demand in Caterpillar’s end markets and robust backlog levels will support its top-line performance and help negate the impact of inflated input costs on its margins.

Per the Zacks analyst, Target’s focus on enhancing omnichannel capacities, coming up with new brands, remodeling stores, and expanding same-day delivery options have been fueling sales.

Per the Zacks analyst, consistent investments boost PG&E Corp’s infrastructure and customer reliability. Yet, the stock is incurring incremental operating costs due to the pandemic.

The Zacks analyst is upbeat about continued strength in Abiomed’s Impella product line. The company’s solid global foothold also buoys optimism.

Per the Zacks analyst, strategies like geographic and product expansion through acquisitions, are aiding Owens Corning.

Per the Zacks analyst, Kimco will benefit from a tenant mix focused on essential, necessity-based goods and services. Moreover, balance sheet-strengthening moves act as a tailwind.

The Zacks analyst is impressed with the company’s efforts to reward its shareholders. The upbeat liquidity position is an added positive.

Per the Zacks analyst, Alkermes’ portfolio of proprietary products is driving growth. Approval of newer drugs will generate incremental sales. The company’s robust pipeline is also progressing well.

The Zacks analyst is concerned about CNH Industrial’s rising capital expenditure which might hurt its profitability. The global chip crunch is also a major headwind for the firm.

The Zacks analyst is concerned about Antero Resources’ falling natural-gas-equivalent production volumes, which will continue to hurt its bottom line as the fuel contributes mostly to its production.

Per the Zacks analyst, Emergent derives the majority of its revenues from sales of its anthrax and smallpox vaccines to the U.S. government. Any loss of existing contracts will hurt its prospects.

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Sheraz Mian