Berkshire Hathaway Upped to Strong Buy on Recent Deals

Zacks

On Dec 26, ZacksOn Dec 26, Zacks Investment Research upgraded Berkshire Hathaway Inc. (BRK.A) (BRK.B) to Zacks Rank #1 (Strong Buy).
On Dec 26, Zacks Investment Research upgraded Berkshire Hathaway Inc. (BRK.A) (BRK.B) to Zacks Rank #1 (Strong Buy).
Why the Upgrade?
Thanks to recent acquisitions, expansion of the insurance business and strong third-quarter operating earnings, the stock has seen upward revision in its earnings estimates. Over the last 60 days, the Zacks Consensus Estimate for 2014 moved up 1.4% to $7.28. For 2015 too, the Zacks Consensus Estimate moved up by the same magnitude to $7.25 per share over the same time frame. The expected long-term earnings growth is 8.4%.
Earlier this month, Berkshire Hathaway announced that it will acquire Charter Brokerage, which provides logistics to the petroleum and chemical industries. Prior to that, the company’s Lubrizol announced that would will buy a couple of units from Weatherford International plc for at least $750 million since the seller was grappling with lower oil prices.
In November, Berkshire Hathaway purchased the Duracell battery business of Procter and Gamble. Other recent deals include the acquisition of TV stations owned by Graham Holdings Co. (GHC) in July.
Investors also appreciate the fact that Berkshire Hathaway has received the license to operate as a non-life insurer in Singapore. The company has also applied for licenses to regulators in Sydney, Hong Kong, and Europe, as it seeks to expand its operations and move beyond its core reinsurance operations. The company is quietly expanding its insurance operations, in order to capitalize on a fast-growing market that is believed to be underserved by existing insurers.
Berkshire Hathaway also impressed investors with strong third-quarter earnings which outpaced the Zacks Consensus Estimate by 12.4%.
Investors are assured about the returns from Berkshire Hathaway given Warren Buffett’s close connection with the company as the chairman and CEO. Buffett’s investment acumen has helped book value per share to grow from $19 to $134,973, at a rate of 19.7% compounded annually, over the last 49 years.
Other players worth considering include AmTrust Financial Services, Inc. (AFSI) and Navigators Group (NAVG). Both these stocks sport the same Zacks Rank as Berkshire Hathaway.
Other players worth considering include AmTrust Financial Services, Inc. (AFSI) and Navigators Group (NAVG). Both these stocks sport the same Zacks Rank as Berkshire Hathaway. Investment Research upgraded Berkshire Hathaway Inc. (BRK.A) (BRK.B) to Zacks Rank #1 (Strong Buy).
Why the Upgrade?
Thanks to recent acquisitions, expansion of the insurance business and strong third-quarter operating earnings, the stock has seen upward revision in its earnings estimates. Over the last 60 days, the Zacks Consensus Estimate for 2014 moved up 1.4% to $7.28. For 2015 too, the Zacks Consensus Estimate moved up by the same magnitude to $7.25 per share over the same time frame. The expected long-term earnings growth is 8.4%.
Earlier this month, the company announced that it will acquire Charter Brokerage, which provides logistics to the petroleum and chemical industries. Prior to that, the company’s Lubrizol announced that would will buy a couple of units from Weatherford International plc for at least $750 million since the seller was grappling with lower oil prices.
In November, the company purchased the Duracell battery business of Procter and Gamble. Other recent deals include the acquisition of TV stations owned by Graham Holdings Co. (GHC) in July.
Investors also appreciate the fact that Berkshire Hathaway has received the license to operate as a non-life insurer in Singapore. The company has also applied for licenses to regulators in Sydney, Hong Kong, and Europe, as it seeks to expand its operations and move beyond its core reinsurance operations. The company is quietly expanding its insurance operations, in order to capitalize on a fast-growing market that is believed to be underserved by existing insurers.
Berkshire Hathaway also impressed investors with strong third-quarter earnings which outpaced the Zacks Consensus Estimate by 12.4%.
Investors are assured about the returns from the company given Warren Buffett’s close connection with the company as the chairman and CEO. Buffett’s investment acumen has helped book value to grow from $19 to $134,973, at a rate of 19.7% compounded annually, over the last 49 years.
Other players worth considering include AmTrust Financial Services, Inc. (AFSI) and Navigators Group (NAVG). Both these stocks sport the same Zacks Rank as Berkshire Hathaway.
On Dec 26, Zacks Investment Research upgraded Berkshire Hathaway Inc. (BRK.A) (BRK.B) to Zacks Rank #1 (Strong Buy).
Why the Upgrade?
Thanks to recent acquisitions, expansion of the insurance business and strong third-quarter operating earnings, the stock has seen upward revision in its earnings estimates. Over the last 60 days, the Zacks Consensus Estimate for 2014 moved up 1.4% to $7.28. For 2015 too, the Zacks Consensus Estimate moved up by the same magnitude to $7.25 per share over the same time frame. The expected long-term earnings growth is 8.4%.
Earlier this month, the company announced that it will acquire Charter Brokerage, which provides logistics to the petroleum and chemical industries. Prior to that, the company’s Lubrizol announced that would will buy a couple of units from Weatherford International plc for at least $750 million since the seller was grappling with lower oil prices.
In November, the company purchased the Duracell battery business of Procter and Gamble. Other recent deals include the acquisition of TV stations owned by Graham Holdings Co. (GHC) in July.
Investors also appreciate the fact that Berkshire Hathaway has received the license to operate as a non-life insurer in Singapore. The company has also applied for licenses to regulators in Sydney, Hong Kong, and Europe, as it seeks to expand its operations and move beyond its core reinsurance operations. The company is quietly expanding its insurance operations, in order to capitalize on a fast-growing market that is believed to be underserved by existing insurers.
Berkshire Hathaway also impressed investors with strong third-quarter earnings which outpaced the Zacks Consensus Estimate by 12.4%.
Investors are assured about the returns from the company given Warren Buffett’s close connection with the company as the chairman and CEO. Buffett’s investment acumen has helped book value to grow from $19 to $134,973, at a rate of 19.7% compounded annually, over the last 49 years.
Other players worth considering include AmTrust Financial Services, Inc. (AFSI) and Navigators Group (NAVG). Both these stocks sport the same Zacks Rank as Berkshire Hathaway.

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

To read this article on Zacks.com click here.

Get all Zacks Research Reports and be alerted to fast-breaking buy and sell opportunities every trading day.

Be the first to comment

Leave a Reply