Key Research Reports for Berkshire Hathaway, Honeywell International and Becton, Dickinson – March 22, 2022

Tuesday, March 22, 2022

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 Berkshire Hathaway Inc. (BRK.B), Honeywell International Inc. (HON) and Becton, Dickinson and Company (BDX). These research reports have been handpicked from the approximately 70 reports published today by our team of analysts.

You can see all today’s research reports here >>>

Shares of Berkshire Hathaway outperformed the Zacks Insurance – P&C industry over the past year (+40.9% vs. +24.1%). The Zacks analyst believes the company is one of the largest P&C insurance companies by premium volume. Berkshire’s inorganic growth story remains impressive with strategic acquisitions, as seen in the just-announced Alleghany transaction. 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 growth, 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.

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

Honeywell International shares are down -7.5% over the past year against Zacks’ diversified trading industry decline of -4.0%. The Zacks analyst believes weak personal protective equipment business will negatively impact its near-term results. Honeywell has faced high costs and expenses and supply chain issues, which could affect its margins and profitability. In addition, high levels of indebtedness could increase its financial obligations and adversely affect its profitability.

However, Honeywell should benefit from strength in the warehouse and workflow solutions, UOPs and advanced materials businesses. It is likely to benefit from acquisitions made over time. Moreover, its ability to generate strong cash flow adds to its strength. The company’s commercial and operational excellence initiatives should be favorable.

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

Shares of Becton, Dickinson have outperformed Zacks Medical’s dental supplies sector over the past six months (+5.4% vs -2.7%). The Zacks analyst believes the company’s uptick in base revenue and strong results from the majority of its arms in the first quarter of fiscal 2022 are impressive. Regulatory approvals and launches are encouraging. BD’s strategic deals bode well. An improved outlook for the full year is also promising.

A strong solvency position is an added advantage. BD’s first quarter results were better than expected. Still, the year-over-year declines in revenue and earnings are disappointing. The fall of the BD Life Science branch and the two geographies are concerning. The decline in revenue from COVID testing alone is disheartening. The contraction of the two margins does not bode well. BD’s business in a heavily consolidated medtech industry is concerning.

(You can read the full research report on Becton, Dickinson here >>>)

Other noteworthy reports we feature today include NXP Semiconductors NV (NXPI), Fortinet, Inc. (FTNT), and Ecolab Inc. (ECL).

Sheraz Mian

Director of Research

Note: Sheraz Mian leads the equity research department at Zacks and is a well-known expert on overall earnings. He is frequently quoted in the written and electronic press and publishes the weekly Earnings Trends and Earnings overview reports. If you would like to receive an email notification whenever Sheraz publishes a new article, please click here>>>

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