Top Analyst Reports for Broadcom, Berkshire Hathaway & Johnson & Johnson

Tuesday, July 29, 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 Broadcom Inc. (AVGO), Berkshire Hathaway Inc. (BRK.B) and Johnson & Johnson (JNJ), as well as two micro-cap stocks Oil-Dri Corp. of America (ODC) and Park Aerospace Corp. (PKE). 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 >>>

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You can read today's AWS here >>> Pre-Markets Up Again on Big News Morning

Today's Featured Research Reports

Broadcom’s shares have outperformed the Zacks Electronics - Semiconductors industry over the year-to-date period (+30.3% vs. +20.5%). The company is experiencing strong momentum fueled by growth in AI semiconductors and continued success with its VMware integration. Strong demand for its networking products and custom AI accelerators (XPUs) has been noteworthy. 

Broadcom’s AI segment benefits from custom accelerators and advanced networking technology that supports large-scale AI deployments with improved performance and efficiency. Broadcom expects third-quarter fiscal 2025 AI revenues to jump 60% year over year to $5.1 billion. The acquisition of VMware has benefited Infrastructure software solutions. 

As of the fiscal second quarter, roughly 87% of Broadcom’s largest 10,000 customers have adopted VMware Cloud Foundation. However, gross margins in the fiscal third quarter are expected to contract sequentially due to unfavorable revenues and product mix. High debt levels are also a headwind.

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

Shares of Berkshire Hathaway have outperformed the Zacks Insurance - Property and Casualty industry over the year-to-date period (+6.4% vs. +5.1%). 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 insurer has also started increasing its investment in Japan. A sturdy capital level provides further impetus. 

However, exposure to cat losses induces earnings volatility and also affects underwriting results. Huge capital expenditures remain a headwind. Also, it remains to be seen how the behemoth fares when Greg Abel succeeds Warren Buffett as CEO of Berkshire.

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

Johnson & Johnson’s shares have outperformed the Zacks Large Cap Pharmaceuticals industry over the year-to-date period (+17.4% vs. +2.6%). The company beat Q2 estimates for earnings and sales. Its Innovative Medicine unit is showing a growth trend, driven by key products like Darzalex, Tremfya and Erleada and continued uptake of new launches, like Spravato, Carvykti and Tecvayli. 

Though in the MedTech segment, sales are being hurt due to headwinds in China and competitive pressures in some categories, the Cardiovascular segment is contributing to growth. J&J expects sales growth in both segments to be higher in the second half than in the first. J&J is making rapid progress with its pipeline, and has been on an acquisition spree lately.

However, the Stelara patent cliff and the potential impact of Part D redesign will be significant headwinds in 2025. The uncertainty around the talc lawsuits and pharma tariffs lingers.

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

Shares of Oil-Dri Corp. of America have outperformed the Zacks Chemical - Diversified industry over the past year (+81.8% vs. -17.8%). This microcap company with market capitalization of $840.09 million is well-positioned for long-term growth, driven by a structural shift toward renewable diesel, where its fluids purification segment posted 22% growth for the first nine months of fiscal 2025.

With expanding capacity across North America, demand for ODC’s solutions is poised to rise, ensuring stable margins and revenue durability. The Ultra Pet acquisition accelerates growth in the pet care segment, expanding the higher-margin crystal litter portfolio. The B2B segment shows strong operating leverage, highlighted by a 43% year-over-year gain in ag product sales. 

With $36.5 million in cash, low debt, strong cash flow, and no drawdown on its $75 million credit line, ODC retains significant strategic flexibility. A recent stock split enhances liquidity, supporting further investor interest and capitalizing on long-term market trends.

(You can read the full research report on Oil-Dri Corporation of America here >>>)

Park Aerospace’s shares have gained +40.1% over the past year against the Zacks Aerospace - Defense Equipment industry’s gain of +50.5%. This microcap company with a market capitalization of $354.03 million posted strong Q1 FY26 revenue growth (+10.2% YoY to $15.4M), driven by robust aerospace and defense demand. Key programs like the A321XLR and LEAP-1A, plus defense contracts for missile components, continue to scale up. 

The company boasts a rock-solid balance sheet with $65.6 million in cash, no debt, and a strong current ratio, enabling self-funded expansion and consistent shareholder returns. Park declared its 41st consecutive annual dividend, with a 3.7% yield and over $603 million returned since FY05. Strategic positioning in next-gen aerospace and defense composites supports long-term demand visibility. 

However, rising SG&A costs and customer concentration via non-guaranteed volume contracts pose risks. Broader supply chain delays and inventory build-ups raise concerns about working capital efficiency. Shares trade at 4.6x EV/sales and 22.5x EV/EBITDA. 

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

Other noteworthy reports we are featuring today include Las Vegas Sands Corp. (LVS), Celestica Inc. (CLS) and Okta, Inc. (OKTA).

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

Strong Demand for Networking Products Aids Broadcom (AVGO)

Solid Insurance Business Aid Berkshire (BRK.B), Cat Loss Ail

J&J's (JNJ) Innovative Medicine Strong, MedTech Improves

Featured Reports

Macao Business Aids Las Vegas Sands (LVS), Macro Woes Ail
Per the Zacks analyst, Las Vegas Sands benefits from solid Macao and Singapore business, driven by strategic investments. However, a challenging macro environment and high debt are concerning.

Subsea Unit with iEPCI model Aids TechnipFMC (FTI)
The Zacks analyst believes that TechnipFMC's unique Subsea products will lead to strong growth but modest performance in the Surface Technologies segment raises concern.

Frequent Business Wins Aid BorgWarner (BWA) Amid Rising Costs
Per the Zacks analyst, frequent business wins are likely to support BorgWarner's top-line growth. However, high research and development costs remain a concern.

Low Fuel Costs Aid American Airlines (AAL), High Debt Ails
Low fuel costs are aiding the company's bottom line. American Airlines' high debt load, however, bothers the Zacks analyst.

Loan Origination Growth Aid Salie Mae (SLM), High Costs Ail
Per the Zacks analyst, early enrolments will drive education loan originations for Sallie Mae, thereby aiding its NII growth. Yet, rising expenses are concerning.

Investments & Strong Production Aid CNX Resources (CNX)
Per the Zacks analyst, CNX Resources' investment plans should strengthen its land, midstream and water infrastructures. Strong production from Marcellus and Utica shales boosts its performance.

Expansion Efforts and Stable Solvency Aid Tandem (TNDM)
The Zacks analyst is impressed with Tandem's efforts to undertake innovation and develop products to cater to consumers' and clinical needs globally. Robust solvency is an added advantage.

New Upgrades

Celestica (CLS) Rides on Solid Demand, Portfolio Strength
Per the Zacks analyst, Celestica is likely to benefit from solid demand trends driven by the growing proliferation of AI-based applications and generative AI tools across industries.

Okta Rides on Innovative Portfolio and Rich Partner Base
Per the Zacks analyst, Okta is benefiting from an expanding partner base, along with a strong backlog and an innovative portfolio.

NAND and RF Power Momentum Aids MKS Inc. (MKSI) Prospects
Per the Zacks analyst, MKS Inc. is benefiting from modest increases in demand for its vacuum product offerings for NAND, RF power solutions offerings in plasma and reactive gas businesses.

New Downgrades

CRISPR's (CRSP) Sole Dependence on Casgevy a Concern
Per the Zacks Analyst, CRISPR Therapeutics is highly dependent on its sole marketed product, Casgevy, to drive sales. Though its pipeline seems impressive, they are still in early-stage development.

Soft Demand to Hurt Capri Holdings (CPRI) Top Line
Per the Zacks analysts, sluggish demand for luxury fashion items is likely to hurt Capri Holdings' top line. We note that the company is seeing soft sales across its brands.

Radian Group (RDN) Hurt by High Costs, Provision for Losses
Per the Zacks analyst, expenses due to higher acquisition and cost of services weigh on margin. Also, provision for losses in Mortgage Insurance Business result in lower net income.

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This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research