The Zacks Analyst Blog Berkshire Hathaway, McDonald's, American Express and Steel Partners Holdings

Group 1: Berkshire Hathaway - Berkshire Hathaway has outperformed the Zacks Insurance - Property and Casualty industry year-to-date, with a performance of +21.8% compared to +19.9% [11] - The company benefits from a strong cash position, which supports earnings-accretive bolt-on buyouts and indicates financial flexibility [11] - Continued growth in the insurance business fuels an increase in float, driving earnings and generating maximum return on equity [12] Group 2: McDonald's - McDonald's shares have underperformed the Zacks Retail - Restaurants industry over the past year, declining by -14.8% compared to -12.4% [4] - The company faces macroeconomic challenges, with commodity and wage inflation being primary headwinds, leading to a decline in earnings estimates for 2024 [4] - Despite challenges, McDonald's is focusing on marketing campaigns, unit expansion, and menu innovation to drive future growth [13] Group 3: American Express - American Express has outperformed the Zacks Financial - Miscellaneous Services industry over the past year, with a performance of +39.3% compared to +13.0% [6] - Growth initiatives, including new product launches and strategic alliances, are boosting revenues [6] - However, rising costs related to card member services and rewards, along with increased marketing expenses, are straining margins [7] Group 4: Steel Partners Holdings - Steel Partners has underperformed the Zacks Diversified Operations industry over the past year, with a decline of -3.8% compared to +9.9% [8] - The company reported a decline in EBITDA margin from 14.2% to 12.3% in Q1 2024, primarily due to underperformance in the Energy and Diversified Industrial segments [8] - Despite challenges, Steel Partners' revenues rose by 7% year-over-year to $476.3 million in Q1 2024, driven by supply chain consolidation and an 18.5% increase in Financial Services revenues [16]