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Top Research Reports for Apple, Berkshire Hathaway & Johnson & Johnson

Thursday, December 3, 2020

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 Apple Inc. (AAPL), Berkshire Hathaway Inc. (BRK.B) and Johnson & Johnson (JNJ). 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 >>>

Apple shares have outperformed the S&P 500 in the year-to-date period (+67.6% vs. +14.2%) on the back of continued momentum in the Services segment, driven by a robust performance of App Store, Apple Music, video, and cloud services. Moreover, iPad, Mac and Wearables contributed strongly to the quarterly results. However, iPhone sales declined in the September-quarter release due to weakness in China and absence of the new iPhone.

Nevertheless, Apple’s near-term prospects are bright, driven by new iPhones that support 5G, revamped iPad and Mac line-up of devices, health-focused Apple Watch 6 and robust growth in the Services business.

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

Shares of Berkshire Hathaway have gained +5.5% over the past year against the Zacks Insurance - Property and Casualty industry’s loss of -2.2%. The Zacks analyst believes that the company’s inorganic growth story remains impressive with strategic acquisitions. 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.

However, exposure to catastrophe loss induces earnings volatility and also affects the property and casualty underwriting results of the company. Huge capital expenditure remains a headwind for the company.

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

Johnson & Johnson shares have gained +1.6% in the year-to-date period against the Zacks Large Cap Pharmaceuticals industry’s rise of +2.2%. J&J faces numerous lawsuits, which allege personal injuries to patients caused by the use of its products. The Zacks analysts believes that these lawsuits have resulted in uncertainties. At the same time, headwinds like generic competition and pricing pressure continue.

However, the company has raised its 2020 outlook due to faster-than-expected recovery in the Medical Devices unit with trends expected to improve further in Q4 and 2021. The Pharma unit is performing at above-market levels, supported by successful label expansion of blockbuster drugs, Imbruvica, Darzalex and Stelara. J&J is also making rapid progress with its pipeline and line extensions. Several pivotal data readouts are expected in the near-term.

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

Other noteworthy reports we are featuring today include Royal Dutch Shell PLC (RDS.A), Lockheed Martin Corporation (LMT) and The PNC Financial Services Group, Inc (PNC).

These Stocks Are Poised to Soar Past the Pandemic

The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.


Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.

See the 5 high-tech stocks now>>

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>>>

Featured Reports

Shell (RDS.A) Aided by LNG Demand Amid Production Woes

The Zacks analyst believes that Shell's position as a major supplier of LNG should benefit its long-term cash flow growth but is worried over the decline in its hydrocarbon production.

Lyft (LYFT) Hurt By Coronavirus-Led Softness in Ride Volumes

The Zacks analyst is concerned about the downturn in Lyft's operations, thanks to coronavirus weighing significantly on ride volumes as people confine themselves to their homes.

Robust Sales Drive GoPro (GPRO) Amid Pandemic-Led Adversities

Per the Zacks analyst, GoPro is gaining from increased camera unit sales across geographies, along with solid traction in subscription service, despite uncertainties stemming from the pandemic.

Whirlpool's (WHR) Cost-Control Measures to Drive Margins

Per the Zacks analyst, Whirlpool is gaining from its cost-saving initiatives, which should enhance margins and liquidity. It generated roughly $350 million in cost savings as of the end of Q3.

Travelers' (TRV) Auto & Homeowners Aids, Cat Loss Ails

Per the Zacks analyst, persistent progress and strong market of the auto and homeowners businesses have driven revenues of the company.

Attractive Business Mixes Aid PNC, Increasing Costs a Woe

Per the Zacks analyst, execution of strategic initiatives and attractive business profile helps PNC improve its topline.

Robust Demand Aids Lockheed (LMT), F-35 program's Cost Hurts

Per the Zacks analyst, Lockheed Martin witnesses strong demand for its aircraft programs and missile defense systems.

New Upgrades

Solid Demand for Residential Products Aid Beacon Roofing (BECN)

Per the Zacks analyst, improved demand for residential products as well as increase in digital sales likely to drive Beacon Roofing performances.

Syneos Health (SYNH) Gains From Recovery in Clinical Solutions

The Zacks analyst is upbeat about Syneos Health's Clinical Solutions revenues showing the strongest sequential recovery amid the pandemic. Strategic partnerships also buoy optimism.

Favorable Demand, Acquisitions Aid International Paper (IP)

The Zacks analyst expects International Paper to gain from elevated packaging demand as well as focus on strategic acquisitions in a bid to strengthen its packaging business.

New Downgrades

Impairment Charges, Stiff Regulations Hurt OGE Energy (OGE)

Per the Zacks analyst, OGE Energy incurred an impairment charge of $780 million on its investment in Enable. Also, environmental regulation increases planning and operation costs of its facilities.

CRISPR's (CRSP) High Reliance On Vertex for Revenues is Woe

Per the Zacks analyst, CRISPR Therapeutics is solely dependent on Vertex for collaborations revenues, which is a concern. Stiff competition in the target market also remains a headwind.

Decline in Business-to-Business Sales Hurts Inogen (INGN).

The Zacks analyst is concerned about Inogen's decline in direct-to-consumer revenues. Softness in its Sales segment is another woe.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Royal Dutch Shell PLC (RDS.A): Free Stock Analysis Report
The PNC Financial Services Group, Inc (PNC): Free Stock Analysis Report
Lockheed Martin Corporation (LMT): Free Stock Analysis Report
Johnson & Johnson (JNJ): Free Stock Analysis Report
Berkshire Hathaway Inc. (BRK.B): Free Stock Analysis Report
Apple Inc. (AAPL): Free Stock Analysis Report
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