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Berkshire Hathaway B (BRK.B) Gains As Market Dips: What You Should Know

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Berkshire Hathaway B (BRK.B - Free Report) closed at $280.78 in the latest trading session, marking a +0.71% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.47%.

Heading into today, shares of the company had gained 0.79% over the past month, outpacing the Finance sector's loss of 1.09% and lagging the S&P 500's gain of 3.38% in that time.

BRK.B will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $2.52, up 10.53% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $11.23 per share and revenue of $284.12 billion. These totals would mark changes of +22.46% and +15.73%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for BRK.B. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. BRK.B is currently a Zacks Rank #2 (Buy).

In terms of valuation, BRK.B is currently trading at a Forward P/E ratio of 24.83. For comparison, its industry has an average Forward P/E of 14.59, which means BRK.B is trading at a premium to the group.

Also, we should mention that BRK.B has a PEG ratio of 3.55. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Insurance - Property and Casualty stocks are, on average, holding a PEG ratio of 1.95 based on yesterday's closing prices.

The Insurance - Property and Casualty industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 204, which puts it in the bottom 20% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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