Top Research Reports for Berkshire Hathaway, AbbVie & Intuitive Surgical

Thursday, May 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 Berkshire Hathaway Inc. (BRK.B), AbbVie Inc. (ABBV) and Intuitive Surgical, Inc. (ISRG), as well as two micro-cap stocks Hamilton Beach Brands Holding Co. (HBB) and AXIL Brands, Inc. (AXIL). 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 and attempts 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 Stay Green After Tariff Ruling, Jobless Claims, Q1 GDP

Today's Featured Research Reports

Shares of Berkshire Hathaway have gained +10.8% over the year-to-date period against the Zacks Insurance - Property and Casualty industry’s gain of +16.1%. 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 loss induces earnings volatility and also affects underwriting results. Huge capital expenditure remains 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 >>>)

AbbVie’s shares have outperformed the Zacks Large Cap Pharmaceuticals industry over the year-to-date period (+6.1% vs. -4.2%). The company beats first-quarter estimates for both earnings and sales. AbbVie has successfully navigated Humira's loss of exclusivity (LOE) by launching two other successful new immunology medicines, Skyrizi and Rinvoq, which are performing extremely well, bolstered by approvals in new indications and should support top-line growth in the next few years. 

AbbVie has several early/mid-stage candidates that have the potential to drive long-term growth. It expects to return to robust revenue growth in 2025, which is just the second year following the U.S. Humira LOE. 

However, the company faces several near-term headwinds like Humira LOE impact, increasing competitive pressure on Imbruvica and slowing sales of its aesthetics franchise.

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

Shares of Intuitive Surgical have outperformed the Zacks Medical - Instruments industry over the year-to-date period (+6.9% vs. -9.2%). The company ended the first quarter on a strong note, beating estimates on both counts. Revenues are likely to be driven by continued improvement in the company’s da Vinci procedure volume, coupled with strong Ion procedure growth. 

ISRG topline is also likely to aided by rising pricing of procedures to fight inflationary pressure. Launch of da Vinci SP in Europe and da Vinci 5 in U.S. market are bringing additional system placements. Opening new manufacturing facilities in Germany and Bulgaria should boost supply. 

However, the continued slowdown in bariatric procedures is likely to continue in 2025 amid the rise of GLP-1 medications, hurting top-line growth. ISRG also expects a slow, gradual decline in Instruments & Accessories revenues per procedure over the next few years due to growth in benign procedures. Operating expenses are likely to be on the higher side in 2025.

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

Hamilton Beach Brands’ shares have outperformed the Zacks Household Appliances industry over the year-to-date period (+13.6% vs. -27.7%). This microcap company with market capitalization of $253.29 million posted strong first-quarter 2025 results, with gross margin up 120 bps to 24.6% despite tariff headwinds, driven by favorable mix and pricing. Operating profit rebounded to $2.3 million amid tight cost control. 

Tariff mitigation, sourcing shifts, and foreign trade zone certification support margin resilience. The high-margin HealthBeacon unit is scaling rapidly, with 50%+ patient growth expected in 2025, aided by a new OptumHealth launch. Premium products like CHI and the upcoming Lotus line support share gains in the $4 billion U.S. appliance market. 

E-commerce now accounts for 40% of U.S. sales, driven by a strong digital strategy. Geographic and channel diversification, including growth in Mexico and a new Sunkist partnership, enhances stability. Solid liquidity and disciplined capital allocation reinforce long-term growth prospects.

(You can read the full research report on Hamilton Beach Brands here >>>)

Shares of AXIL Brands have outperformed the Zacks Consumer Products - Staples industry over the year-to-date period (+60.4% vs. +3.2%). This microcap company with market capitalization of $41.03 million offers a compelling growth narrative driven by strong direct-to-consumer momentum, supported by enhanced e-commerce, data-driven marketing, and favorable Cyber Monday timing. 

Gross margins remained robust at 71.7% in the third quarter of fiscal 2025 due to operational efficiency and product mix, with adjusted EBITDA margin expanding to 12.9%. Improved liquidity ($4.77 million in cash) and positive operating cash flow ($1.7 million for the first nine months of fiscal 2025) enhance financial flexibility. Strategic United States supply chain shifts bolster resilience, while global direct-to-consumer-led expansion reduces domestic dependency. 

However, risks persist: weak inventory turnover, vendor and receivables concentration, elevated selling, general, and administrative expenses, and uncertain execution of domestic manufacturing could pressure margins and limit scalability if growth lags.

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

Other noteworthy reports we are featuring today include Howmet Aerospace Inc. (HWM), HEICO Corp. (HEI) and Warner Bros. Discovery, Inc. (WBD).

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

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

AbbVie's (ABBV) Skyrizi, Rinvoq Key to Top-Line Growth

Intuitive Surgical's (ISRG) da Vinci System Helps Offset Risks

Featured Reports

Acquisitions to Aid Heico (HEI), Shortage of Parts Woes
Per the Zacks analyst, disciplined acquisition strategy has been driving Heico's overall performance. However, shortage of parts supply might adversely impact the company's results of operations

Warner Bros. Discovery (WBD) Rides on Strong DTC Business
Per the Zacks analyst, Warner Bros. Discovery's streaming service Max is growing rapidly, targeting 150 million subscribers by 2026.

Healthy Demand Aids Essex Property (ESS) Amid High Supply
Per the Zacks Analyst, Essex Property is to gain from a sturdy property base in the West Coast market with favorable demand drivers. Yet, high supply of rental units restrict rent growth momentum.

Light & Wonder (LNW) Rides on Strong Demand, AI Integration
Per the Zacks analyst, growing demand for COSMIC UPRIGHT and HORIZON cabinets will likely drive Light & Wonder's top line. A strong emphasis on AI tools and process development is a positive.

Shake Shack (SHAK) Banks On Menu Innovation, Macro Woes Ail
Per the Zacks analyst, Shake Shack's focus on menu innovation, unit expansion and licensed business segment bodes well. Yet, weather challenges and an uncertain macro environment are concerns.

Strong AI Growth and Partnerships Aid Box (BOX) Prospects
Per the Zacks analyst, Box is benefiting from strong demand for Box AI, increased adoption of its Enterprise Advanced suite, and AI partnerships.

RPC's (RES) Diverse Oilfield Services Drives Stable Revenues
RPC generates stable revenues from diverse services. However, weak demand amid rising price competition and tariff risks concerns the Zacks analyst.

New Upgrades

Strength in Commercial Aerospace Market Drives Howmet (HWM)
Per the Zacks analyst, Howmet Aerospace is witnessing solid momentum in the commercial aerospace market, fueled by robust demand for engine spares. Its sound liquidity position adds to its strength.

Golar LNG (GLNG) Benefits From Dividends & Share Buybacks
The Zacks analyst likes the shareholder-friendly measures adopted by Golar LNG (GLNG). Such efforts boost investor confidence and the company's bottom line.

Strong Demand & Nissens Buyout Aid Standard Motor (SMP)
Per the Zacks analyst, Standard Motor is expected to gain from sustained demand for automotive parts. The acquisition of Nissens is also expected to boost top-line growth.

New Downgrades

Corcept's (CORT) Korlym Dependence for Sales Raises Concerns
Per the Zacks analyst, Corcept's sole dependence on Cushing's syndrome drug, Korlym, for revenues is concerning. Recent pipeline setbacks weigh heavily on the stock.

Weaker Demand & High Capital Requirement Ail PACCAR (PCAR)
Per the Zacks analyst, PACCAR faces demand headwinds as the 2025 outlook for North American and South American markets weakens. Rising capital requirement also raises concerns.

Soft Demand in China Drags Skechers' (SKX) Sales
Per the Zacks analyst, Skechers' 16% sales decline in China during the first quarter signals macro pressures and soft demand, raising near-term concerns for the brand's international growth strategy.

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

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