Top Analyst Reports for Berkshire Hathaway, Toyota Motor & McDonald's

Wednesday, August 27, 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), Toyota Motor Corp. (TM) and McDonald's Corp. (MCD), as well as two micro-cap stocks Elite Pharmaceuticals, Inc. (ELTP) and BK Technologies Corp. (BKTI). 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 >>> Countdown to NVIDIA Earnings, PCE Report Friday

Today's Featured Research Reports

Berkshire Hathaway’s shares have outperformed the Zacks Insurance - Property and Casualty industry over the year-to-date period (+9% vs. +7.8%). 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 insurer has also started increasing its investment in Japan. A sturdy capital level provides further impetus. 

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

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

Shares of Toyota Motor have gained +0.8% over the year-to-date period against the Zacks Automotive - Foreign industry’s gain of +5%. The company’s sales are getting a boost from the surge in hybrid adoption. The RAV4 model, with hybrid variants that make up about half of Toyota’s sales, is America's top-selling SUV. 

Toyota Motor aims to lower hydrogen costs by promoting its use in commercial vehicles. It plans to sell its hydrogen-powered units externally, encouraging broader adoption beyond its own fleet. By increasing overall hydrogen demand, the company expects economies of scale to drive down production costs. 

However, Toyota expects its operating income for fiscal 2026 to decline year over year due to material prices, the impact of the forex rate and tariffs imposed by the U.S. government on vehicle and vehicle parts imports. Pretax profit is also expected to decline. Thus, the stock warrants a cautious stance.

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

McDonald's shares have outperformed the Zacks Retail - Restaurants industry over the year-to-date period (+10.1% vs. -2.3%). The company reported second-quarter 2025 results, wherein earnings and revenues beat the Zacks Consensus Estimate. Both the top and bottom lines increased year over year, driven by robust international comps, strong brand-led campaigns, loyalty expansion and solid menu innovation. 

The Accelerating the Arches strategy, supported by value platforms and unit expansion, continues to drive momentum. Management remains confident in its long-term growth trajectory, underpinned by unit expansion toward 50,000 restaurants by 2027.

Earnings estimates for 2025 have increased in the past 30 days, depicting analysts' optimism regarding the stock’s growth potential. However, higher beef and labor costs in Europe, and soft traffic trends in the United States, pose concerns.

(You can read the full research report on McDonald's here >>>)

Shares of Elite Pharmaceuticals have outperformed the Zacks Medical - Drugs industry over the past year (+98.3% vs. -0.3%). This microcap company with a market capitalization of $586.35 million is capitalizing on the $3.5 billion U.S. ADHD market with its December 2024 launch of generic Lisdexamfetamine, quickly reaching 8–10% share while generic penetration lags peers, leaving room for growth. 

The first-quarter fiscal 2026 revenues surged 113.9% to $40.2 million, with gross margins expanding to 68% on the back of the shift to direct commercialization. Core Adderall IR/ER franchises provide stable cash flow as CNS and opioid analgesic launches diversify revenue. 

Strong liquidity ($21.7 million net cash, $67.1 million working capital) supports pipeline, M&A and global expansion. Risks include heavy reliance on Lisdexamfetamine amid pricing pressure, customer concentration, inventory build and offshore competition. The valuation reflects optimism around growth momentum, but also embeds risks tied to product concentration.

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

BK Technologies’ shares have outperformed the Zacks Wireless Equipment industry over the past year (+225.3% vs. +30.1%). This microcap company with market capitalization of $255.79 million is driving growth through its BKR Series, notably the BKR 9000, which is gaining adoption across federal, state and local agencies due to competitive pricing, full P25 compliance and interoperability. 

Strong orders support revenue growth, with higher ASPs boosting margins. Gross margins expanded to 47.4% in Q2 2025, aided by mix shift and outsourced manufacturing, with guidance raised above 47%. SaaS platform BK ONE introduces high-margin recurring revenue streams, expanding TAM beyond hardware. 

BKTI has a debt-free balance sheet, supporting R&D and market expansion. Risks include customer concentration, software execution challenges, tariff exposure and delayed BKR 9500 launch. The valuation implies a discounted entry point, offering investors upside as BKTI scales high-margin products and SaaS, while managing execution risks.

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

Other noteworthy reports we are featuring today include Eaton Corp. plc (ETN), American International Group, Inc. (AIG) and Ryanair Holdings plc (RYAAY).

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

Berkshire Hathaway (BRK.B) Gains from Strong Underwriting.

Cost Saving Efforts Aid Toyota (TM) Amid Rising Debt Levels

McDonald's (MCD) Banks on Strategic Initiatives, High Costs Ail

Featured Reports

New Product Development, Wide Market Reach Aid Eaton (ETN)
Per the Zacks analyst Eaton's operations in 160 countries across the world and development of new products through ongoing R&D investments will continue to drive demand and boost profitability.

AIG Benefits From Divestitures Amid High Combined Ratio
Per the Zacks Analyst, business streamlining by selling low returning units and focusing on high growth units boosts operational capacities. However, a deteriorating combined ratio remains a concern.

Sanmina (SANM) Rides on Portfolio Strength, Customer-Focused Approach
Per the Zacks analyst, Sanmina is likely to benefit from a diverse portfolio, solid technology leadership and end-to-end product lifecycle management that helps to reduce complexity in operations.

Loan Growth, Buyouts Aid Valley National (VLY), Costs Ail
Per the Zacks analyst, decent loan growth and Valley National's inorganic expansion efforts will support the top line. As it invests in revenue growth areas, costs will be elevated, hurting profits.

Firdapse & Agamree Sales Boost CPRX Amid Fycompa Patent Loss
Per the Zacks analyst, solid demand for Firdapse and Agamree should fuel strong growth for Catalyst in the quarters ahead. However, the loss of the Fycompa patent triggers generic competition.

Sarepta (SRPT) Growth Outlook Dimmed by Elevidys Concerns
Though Sarepta's pipeline expansion across CNS and rare pulmonary disorders holds potential, the Zacks analyst is concerned with two Elevidys-linked deaths and their impact on topline growth.

Delek (DK) Benefits from Strong, Integrated Refining Network
The Zacks analyst believes that Delek US Holdings benefits from strategic refinery placement and integration, but its significant debt load poses challenges to the company's financial health.

New Upgrades

Ryanair (RYAAY) Continues to Benefit From Improved Traffic
The Zacks Analyst is impressed with Ryanair's improved traffic growth, which implies increased passenger volume. Measures to expand its fleet to cater to the rising travel demand are encouraging.

Growth in Direct-To-Consumer Business Aids Skechers (SKX)
Per the Zacks analyst, Skechers' direct-to-consumer business gains from growth in international and domestic markets. During second-quarter 2025, direct-to-consumer sales increased 11% year over year.

Government Contracts & Strong Liquidity Aids Maximus (MMS)
Per the Zacks analyst, long-term contracts with governments generate predictable recurring revenues for Maximus. The company also maintains strong liquidity, with a current ratio above 1.

New Downgrades

Macro & Demand Headwinds Hurt Molson Coors' (TAP) Volumes
Per the Zacks analyst, Molson Coors faces soft volumes as macro headwinds, weak demand, and lost contracts hit key regions hard. In Q2 2025, volumes fell 6.6% in Americas and 7.8% in EMEA&APAC.

Export Controls, Softening IT Spending Hurts Marvell (MRVL)
Per the Zacks analyst, the U.S. government's chip export restrictions on China and weakening enterprise spending amid macroeconomic uncertainties are likely to hurt Marvell's near-term prospects.

Mounting Expenses Irk Bruker (BRKR) Amid Tough Competition
The Zacks analyst is worried about Bruker's escalating expenses that are putting pressure on the company's bottom line. Also, a tough competitive environment in broader healthcare market is a worry.

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

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