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

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Berkshire Hathaway B (BRK.B - Free Report) closed the most recent trading day at $336.96, moving -0.49% from the previous trading session. This move lagged the S&P 500's daily gain of 0.37%. At the same time, the Dow lost 0.01%, and the tech-heavy Nasdaq lost 1.26%.

Prior to today's trading, shares of the company had gained 5.75% over the past month. This has outpaced the Finance sector's gain of 3.13% and the S&P 500's gain of 4.31% in that time.

Wall Street will be looking for positivity from Berkshire Hathaway B as it approaches its next earnings report date. On that day, Berkshire Hathaway B is projected to report earnings of $6.44 per share, which would represent year-over-year growth of 53.33%. Our most recent consensus estimate is calling for quarterly revenue of $78.32 billion, up 2.81% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $16.31 per share and revenue of $316.85 billion. These totals would mark changes of +16.75% and +4.89%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for Berkshire Hathaway B. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Berkshire Hathaway B is currently sporting a Zacks Rank of #4 (Sell).

Digging into valuation, Berkshire Hathaway B currently has a Forward P/E ratio of 20.77. This valuation marks a premium compared to its industry's average Forward P/E of 14.87.

It is also worth noting that BRK.B currently has a PEG ratio of 2.97. 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. The Insurance - Property and Casualty was holding an average PEG ratio of 1.24 at yesterday's closing price.

The Insurance - Property and Casualty industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 164, which puts it in the bottom 35% 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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