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

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In the latest trading session, Berkshire Hathaway B (BRK.B - Free Report) closed at $357.78, marking a -0.46% move from the previous day. This move lagged the S&P 500's daily gain of 0.02%. Elsewhere, the Dow lost 0.2%, while the tech-heavy Nasdaq added 0.22%.

Prior to today's trading, shares of the company had gained 0.32% over the past month. This has outpaced the Finance sector's loss of 1.61% and the S&P 500's loss of 2.86% in that time.

Wall Street will be looking for positivity from Berkshire Hathaway B as it approaches its next earnings report date. The company is expected to report EPS of $4.74, up 34.28% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $76.41 billion, down 0.68% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $15.82 per share and revenue of $331.03 billion. These totals would mark changes of +13.24% and +9.58%, respectively, from last year.

Any recent changes to analyst estimates for Berkshire Hathaway B should also be noted by investors. 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.

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 sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Berkshire Hathaway B has a Forward P/E ratio of 22.73 right now. This valuation marks a premium compared to its industry's average Forward P/E of 14.9.

Meanwhile, BRK.B's PEG ratio is currently 3.25. 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 1.29 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 64, which puts it in the top 26% 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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