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Berkshire Hathaway B (BRK.B) Gains But Lags Market: What You Should Know

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Berkshire Hathaway B (BRK.B - Free Report) closed the most recent trading day at $278.93, moving +0.46% from the previous trading session. The stock lagged the S&P 500's daily gain of 1.46%. At the same time, the Dow added 1%, and the tech-heavy Nasdaq lost 0.17%.

Coming into today, shares of the company had lost 11.75% in the past month. In that same time, the Finance sector lost 6.38%, while the S&P 500 lost 6.94%.

Berkshire Hathaway B will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $3.32, up 12.93% from the prior-year quarter.

Investors might also notice recent changes to analyst estimates for Berkshire Hathaway B. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Berkshire Hathaway B is currently a Zacks Rank #3 (Hold).

Digging into valuation, Berkshire Hathaway B currently has a Forward P/E ratio of 21.56. For comparison, its industry has an average Forward P/E of 13.23, which means Berkshire Hathaway B is trading at a premium to the group.

It is also worth noting that BRK.B currently has a PEG ratio of 3.08. 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. BRK.B's industry had an average PEG ratio of 1.76 as of yesterday's close.

The Insurance - Property and Casualty industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 101, which puts it in the top 40% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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