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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. (NYSE:BRKa) (BRK.B), SAP SE (DE:SAPG) (SAP), and Equinix (NASDAQ:EQIX), Inc. (EQIX). 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 Berkshire Hathaway have outperformed the Zacks Insurance - Property and Casualty industry in the year to date period (+20.1% vs. +17.5%). The Zacks analyst believes that the company is poised to benefit from its insurance business, manufacturing, service and retail business, disciplined capital management as well as acquisitions.
A strong cash position not only supports earnings-accretive bolt-on buyouts but reflects its financial flexibility. Its non-insurance businesses have been delivering improved results with increased revenues over the past few years. Exposure to catastrophe loss is a major concern as it leads to earnings volatility and weighs on the property and casualty underwriting results of Berkshire.
(You can read the full research report on Berkshire Hathaway here >>>)
SAP shares have gained +18.1% in the past six months against the Zacks Computer Software industry’s gain of +28.1%, however, its performance has been benefitting from continued strength in its cloud business. The Zacks analyst believes that SAP’s dominance in providing efficient customer engagement, human capital management and interconnected commerce network support its growth.
The company’s alliances with IBM (NYSE:IBM), Microsoft (NASDAQ:MSFT) and Verizon (NYSE:VZ) favor business prospects. Solid demand for e-commerce, digital supply chain and other cloud platform solutions, bodes well for the long term. It raised outlook for 2021 on the back of its strong cloud business. Soft uptake of software licenses and support offerings and increasing investments to enhance cloud-based offerings remain concerns though.
(You can read the full research report on SAP here >>>)
Shares of Equinix have gained +9% in the last three months against the Zacks REIT and Equity Trust industry’s gain of +1%. The Zacks analyst believes that the company is well-positioned to capitalize on its thriving data center business.
The company’s global data-center portfolio is likely to witness high demand for inter-connected data-center space, driven by acceleration in increasing cloud or Internet customers’ demands. Competition from carrier-neutral data centers, capital intensity of data center builds, growing debt, foreign-exchange fluctuations and consolidation in the telecommunication industry are major headwinds for the company.
(You can read the full research report on Equinix here >>>)
Other noteworthy reports we are featuring today include ABB Ltd (ABB), General Dynamics Corporation (NYSE:GD) (GD) and Lululemon Athletica (NASDAQ:LULU) Inc. (LULU).
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>>>
Zacks’ Top Picks to Cash in on Artificial Intelligence
This world-changing technology is projected to generate $100s of billions by 2025. From self-driving cars to consumer data analysis, people are relying on machines more than we ever have before. Now is the time to capitalize on the 4th Industrial Revolution. Zacks’ urgent special report reveals 6 AI picks investors need to know about today.
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