Top Stock Reports for Berkshire Hathaway, Roche & RTX

Tuesday, August 25, 2026

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), Roche Holding AG (RHHBY) and RTX Corp. (RTX), as well as two micro-cap stocks The Eastern Co. (EML) and AmeriServ Financial, Inc. (ASRV). 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 >>>

Ahead of Wall Street

The daily 'Ahead of Wall Street' article is a must-read for all investors who would like to be ready for that day's trading action. The article comes out before the market opens, attempting to make sense of that morning's economic releases and how they will affect that day's market action. You can read this article for free on our home page and can actually sign up there to get an email notification as this article comes out each morning.

You can read today's AWS here >>> Pre-Markets Up, DKS Sells Off on Q2 Miss

Today's Featured Research Reports

Shares of Berkshire Hathaway have gained +2.5% over the past year against the Zacks Insurance - Property and Casualty industry’s gain of +4.4%. The company benefits from diversified businesses, disciplined underwriting and a large liquidity base that support durable earnings capacity and flexible capital allocation. 

Insurance float remains a low-cost funding source, while manufacturing, services, BNSF and Berkshire Hathaway Energy broaden the earnings mix. Recent acquisitions and renewed share repurchases show multiple avenues for deploying capital. Still, insurance results remain exposed to catastrophe losses and rising claim frequency and severity.

Lower short-term rates are reducing insurance investment income, while BNSF and BHE require substantial capital spending. Greg Abel is now leading the company, leaving execution under the new leadership structure as an important watchpoint. These offsets support an overall balanced risk-reward profile and a Neutral view.

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

Roche’s shares have outperformed the Zacks Large Cap Pharmaceuticals industry over the past year (+45.2% vs. +43.7%). The company’s performance in the first half was weighed down by unfavorable foreign-exchange movements. Nonetheless, the company’s underlying operational performance remained solid. 

Strong growth from key products helped offset declining revenues from legacy drugs. Multiple sclerosis drug Ocrevus and ophthalmology drug Vabysmo continued their stellar performances. Growth in hemophilia treatment Hemlibra and breast cancer drug Phesgo also boosted the top line. Roche has a strong and diversified pipeline spanning multiple therapeutic modalities. 

A tentative approval of breast cancer candidate giredestrant could serve as a meaningful catalyst for the stock. Roche is also targeting acquisitions, collaborations and expansion into newer therapeutic areas such as obesity to revive long-term growth, but pipeline and regulatory setbacks are headwinds.

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

Shares of RTX have outperformed the Zacks Aerospace - Defense industry over the past year (+33% vs. -3.1%). The company’s performance is supported by a steady recovery in commercial aerospace, strong defense orders and robust backlog. Rising global air traffic, higher commercial OEM and aftermarket sales and strong demand for large commercial engines should aid growth. 

RTX’s defense business remains well-positioned, backed by strong bookings from the Pentagon and foreign allies. The company ended the second quarter of 2026 with a backlog of $289 billion. It’s cash generation funds expansion, innovation and debt reduction. 

However, persistent supply-chain disruptions remain a concern. Aircraft engine availability issues may affect production and deliveries. Tariff-related uncertainty and expanded Russia-linked sanctions also pose risks to RTX’s operations. We have a Neutral rating on RTX shares.

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

Eastern’s shares have outperformed the Zacks Security and Safety Services industry over the past year (+10.7% vs. -17.2%). This microcap company with a market capitalization of $154.17 million enters the second half of 2026 with stronger revenue visibility, supported by a $126.2 million backlog, up 45% year over year. Improving Class 8 truck production should benefit Velvac and Eberhard, while Big 3’s automotive model launches and largely filled 2026 rack backlog provide another recovery driver. 

The Sungear and Crown Precision acquisitions add aerospace and defense exposure, more than $18 million of backlog and roughly $20 million of annual revenue potential. Operating cash flow also improved to $12 million in the first half, supporting investment and working-capital needs. 

However, first-half sales fell 11% to $121.5 million, operating profit declined to $3 million and gross margin contracted to 20.3%. Tariffs, higher inventories and leverage remain risks. Valuation is mixed, with EV/sales below peers but EV/EBITDA elevated versus its historical median. 

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

Shares of AmeriServ Financial have outperformed the Zacks Banks - Northeast industry over the past year (+62.8% vs. +26.7%). This microcap company with a market capitalization of $81.67 million has seen its net income increased by 179% to $4.5 million in the first half of 2026, while net interest margin expanded 24 basis points to 3.30%, aided by lower deposit costs and reduced reliance on expensive borrowings.

Management expects further margin improvement in the second half of 2026. Deposit growth, ample liquidity and an 80.5% loan-to-deposit ratio provide the company capacity to revive lending, while wealth-management fees and $2.8 billion of administered assets strengthen ASRV's fee-based revenues. Capital levels also support organic growth and dividends. 

However, average loans fell 4% as CRE payoffs exceeded originations, potentially constraining interest-income growth. CRE remains a credit risk, while first-half operating expenses rose 7.2%. Increased securities duration also raises rate sensitivity. The stock trades at 0.66X book value versus 1.34X for the sub-industry. 

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

Other noteworthy reports we are featuring today include Lumentum Holdings Inc. (LITE), Public Storage (PSA) and Rocket Lab Corp. (RKLB).

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 (BRK.B) Poised to Grow on Solid Insurance Business

Ocrevus, Phesgo Fuel Roche (RHHBY), Decline in Legacy Drugs a Woe

Solid Order Growth Supports RTX Amid Supply Chain Disruptions

Featured Reports

Scale, Deals Aid Public Storage (PSA) Amid Debt and Execution Risks
Per the Zacks analyst, Public Storage benefits from its scale and recent deals, which expand its footprint and support long-term growth. However, debt costs and execution risks may weigh on returns.

Defense Demand Aids Rocket Lab Amid Neutron Risks (RKLB)
Per the Zacks analyst, Rocket Lab benefits from rising defense demand and record contract wins, while Neutron development and launch execution risks temper the outlook.

Operational Excellence to Aid Magna (MGA) Amid Weaker Production
Per the Zacks analyst, Magna's productivity and efficiency initiatives are translating into sustained margin gains. However, weaker production or adverse mix can limit its revenue growth.

Health & Science Technologies Unit Aids IDEX (IEX), Costs Ail
Per the Zacks analyst, IDEX is witnessing strength in its Health & Science unit, driven by solid demand across data center, semiconductor, space and defense markets. High costs remain a woe for it.

Trading, IB, Global Expansion to Aid Jefferies (JEF), High Costs Ail
Per the Zacks analyst, a solid IB and trading business, strategic global expansion efforts and a strong balance sheet position will support Jefferies. However, a steady rise in expenses is a concern.

Avantor (AVTR) Gains on Revival Progress Amid Mixed End Markets
Per the Zacks Analyst, Avantor is benefiting from its Revival program and operational improvements, though weak end markets, competitive pressures and share challenges keep the outlook balanced.

Sensata (ST) Gains from Aerospace, Defense & Commercial Equipment Unit
Per the Zacks analyst, Sensata is gaining momentum in the Aerospace, Defense and Commercial Equipment unit, due to solid demand, rising generator-set needs and a truck production replenishment cycle.

New Upgrades

AI-Driven Optics Upgrades Boosts Lumentum's (LITE) Prospects
Per the Zacks analyst, Lumentum benefits from acceleration in AI-driven optics upgrades with higher-speed modules delivering superior unit economics and yields.

Gartner's (IT) Subscription Model Drives Recurring Growth
Per the Zacks analyst, Gartner's Insights business is nearly entirely subscription-based, giving the company recurring revenue and high incremental economics as clients renew and expand relationships.

Afirma Solution's Outperformance Aid Veracyte (VCYT)
The Zacks Analyst is impressed with Veracyte's comprehensive Afirma solution, which demonstrated strong 18% growth in the second quarter of 2026 driven by growing number of new customers.

New Downgrades

USA Compression's (USAC) J-W Integration Risks Cloud Outlook
The Zacks analyst believes that USA Compression's J-W integration may delay synergies, with ongoing contract migration, pricing and asset optimization creating execution risks for earnings.

Signet Jewelers (SIG) Faces Margin and Consumer Spending Pressures
Per the Zacks analyst, Signet Jewelers faces margin pressure from higher gold costs, tariff uncertainty and cautious discretionary spending, while the James Allen transition weighs on sales.

Macao Holds Volatility & High Costs Ail Las Vegas Sands (LVS) Prospect
Per the Zacks analyst, Las Vegas Sands is grappling with low rolling-play hold in Macao, high costs, and capital expenditures. Also, competitive pressures and ongoing renovation activity are concerns.

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

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

Zacks Investment Research