Thursday, January 2, 2025

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), The Home Depot, Inc. (HD) and Pfizer Inc. (PFE), as well as a micro-cap stock AMREP Corp. (AXR). 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 outperformed the Zacks Insurance - Property and Casualty industry over the past year (+24.0% vs. +23.8%). 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 expenditures remain 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 Home Depot have outperformed the Zacks Retail - Home Furnishings industry over the past six months (+18.5% vs. +17.9%). The company’s stock prices is driven by a recovery in top-line trends supported by sales from the SRS acquisition. The company delivered better-than-expected sales and EPS in third-quarter fiscal 2024, with year-over-year sales growth fueled by gains in certain seasonal categories due to favorable weather and hurricane-related demand. 

Home Depot gains from its “One Home Depot” investment plan focused on expanding supply chain facilities, enhancing technology, and improving the digital experience. HD is also advancing efforts to build a robust Pro ecosystem. 

HD raised its sales and EPS view for fiscal 2024, citing strong third-quarter results and projected hurricane-related demand in Q4. However, comparable sales and EPS remain impacted by higher interest rates and ongoing macroeconomic uncertainties.

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

Pfizer’s shares have underperformed the Zacks Large Cap Pharmaceuticals industry over the past year (-4.3% vs. +0.9%). The company’s revenues from Pfizer’s COVID-19 products are declining due to lower demand. Pfizer also expects a significant impact from the loss of patent exclusivity in the 2026-2030 period, as several of its key products face patent expirations. 

However, Pfizer’s non-COVID operational revenue growth improved in the first three quarters of 2024, driven by its key in-line products like Vyndaqel and Eliquis, new launches and newly acquired products from Seagen. 

Huge profits from its COVID products strengthened its cash position, which is being used to make acquisitions, increase dividends, buy back shares and reduce debt. Seagen’s acquisition has strengthened its position in oncology. Continued growth in non-COVID sales and significant cost-reducing measures should drive profit growth.

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

Shares of AMREP have outperformed the Zacks Real Estate - Development industry over the past year (+44.3% vs. -8.3%). This microcap company with market capitalization of $166.03 million has achieved impressive financial growth in fiscal 2025, with fiscal second-quarter revenues up 34.5% to $11.9 million and net income soaring 264.8% to $4 million. First-half revenues rose 61.9% to $30.9 million, driven by operational efficiency and favorable market conditions.

Strategic land holdings in New Mexico position AMREP to benefit from rising housing demand amid easing monetary policies, declining mortgage rates and limited supply, supporting long-term growth. Favorable macro trends and resilient housing prices drive profitability. 

Risks include geographic concentration, market volatility, affordability challenges, reliance on the real estate market and elevated input costs. Regulatory changes, competition and economic uncertainty could impact performance, but AMREP’s operational efficiency and strong margins mitigate these risks.

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

Other noteworthy reports we are featuring today include The TJX Companies, Inc. (TJX), Robinhood Markets, Inc. (HOOD) and LyondellBasell Industries N.V. (LYB).

Mark Vickery
Senior Editor

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

Home Depot's (HD) Interconnected Strategy to Boost Sales

Pfizer's (PFE) New Products Can Drive Long-Term Sales Growth

Featured Reports

Expansion Efforts Fuel TJX Companies (TJX), High Costs a Woe
Per the Zacks analyst, TJX Companies is on track with store expansion efforts to boost its performance. However, a rise in store wages and payroll costs pose a challenge.

PO/TBA Plant Aids LyondellBasell (LYB), Turnaround Costs Ail
Per the Zacks analyst, LyondellBasell will benefit from higher production capacity driven by the new PO/TBA plant amid headwinds from costs associated with maintenance turnarounds.

Momentum in Cloud Solutions Aid CDW Amid Weak Demand Trends
Per the Zacks analyst, continuous declines in the Corporate, Small Business and Public units are hurting CDW's revenue. However, growth in security and cloud solutions is driving service revenues.

High Volume Aids International Flavors (IFF) Amid Cost Woes
Per the Zacks Analyst, International Flavors will gain from the improved volumes across all its segments in recent quarters. However, high raw material costs are expected to be headwinds.

Clean Harbors (CLH) Gains From Thompson Buyout, Expenses Ail
Per the Zacks analyst, Thompson acquisition expanded Clean Harbors' Environmental Services segment's industrial service operations in the southeastern region of the U.S. Rising expenses is concerning.

Sunoco's (SUN) Robust Motor Fuel Distribution Network Aids
Per the Zacks analyst, Sunoco's long-term contracts with over 10,000 convenience stores across the U.S. ensure stable earnings. Also, its NuStar Energy acquisition supports business diversification.

CONMED's (CNMD) Robust Product Portfolio Offsets Competition
Per the Zacks analyst, CONMED's robust product portfolio, along with a solid recurring revenue base, is encouraging. However, CNMD's operation in a stiff competitive space raises concerns.

New Upgrades

Buyouts, Rate Cuts & Product Expansion Aid Robinhood (HOOD)
Per the Zacks analyst, interest rate cuts, strategic buyouts such as TradePMR and Bitstamp, product diversification efforts, and a solid balance sheet will likely support Robinhood's financials.

Improving Lumber Fundamentals to Benefit Weyerhaeuser (WY)
The Zacks analyst believes that improving backdrop for lumber price fundamentals and bolstered visibility on lumber demand across the entire residential construction market to aid Weyerhaeuser.

Permian Basin Presence, JV Aid Plains All American (PAA)
Per the Zacks analyst, Plains All American benefits from rise in production from the Permian region, with a revival in demand for midstream services. Its joint ventures are expected to drive earnings.

New Downgrades

Flucuating Commodity Price, Competition Ail Murphy (MUR)
Per the Zacks analyst Murphy Oil future prospects can be adversely impacted by the fluctuating commodity prices, while competitive industry can affect its profitability.

Vishay (VSH) Suffers From Sluggish MOSFET and Opto Segments
Per the Zacks analyst, Vishay is suffering from weakness in MOSFET and optoelectronics product lines, particularly in the Americas and Europe regions.

Project Delays & Cancellations Ail Fluor's (FLR) Performance
Per the Zacks analyst, Fluor's performance is being hurt by the cancellation of a major semiconductor project and ongoing project delays.

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

Pfizer Inc. (PFE) : Free Stock Analysis Report

The TJX Companies, Inc. (TJX) : Free Stock Analysis Report

The Home Depot, Inc. (HD) : Free Stock Analysis Report

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

LyondellBasell Industries N.V. (LYB) : Free Stock Analysis Report

AMREP Corporation (AXR): Free Stock Analysis Report

Robinhood Markets, Inc. (HOOD) : Free Stock Analysis Report

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