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Berkshire Hathaway B (BRK.B) Advances But Underperforms Market: Key Facts

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Berkshire Hathaway B (BRK.B - Free Report) closed the latest trading day at $368.18, indicating a +0.71% change from the previous session's end. This change lagged the S&P 500's 1.41% gain on the day. Meanwhile, the Dow experienced a rise of 0.58%, and the technology-dominated Nasdaq saw an increase of 2.2%.

Shares of the company have appreciated by 3.54% over the course of the past month, underperforming the Finance sector's gain of 5.34% and outperforming the S&P 500's gain of 2.9%.

Analysts and investors alike will be keeping a close eye on the performance of Berkshire Hathaway B in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $1.78, marking a 41.64% fall compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $76.73 billion, down 1.84% from the year-ago period.

Investors should also take note of any recent adjustments to analyst estimates for Berkshire Hathaway B. Recent revisions tend to reflect the latest near-term business trends. 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 capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. At present, Berkshire Hathaway B boasts a Zacks Rank of #2 (Buy).

From a valuation perspective, Berkshire Hathaway B is currently exchanging hands at a Forward P/E ratio of 20.13. Its industry sports an average Forward P/E of 12.6, so one might conclude that Berkshire Hathaway B is trading at a premium comparatively.

One should further note that BRK.B currently holds a PEG ratio of 2.88. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Insurance - Property and Casualty industry currently had an average PEG ratio of 1.12 as of yesterday's close.

The Insurance - Property and Casualty industry is part of the Finance sector. Currently, this industry holds a Zacks Industry Rank of 53, positioning it in the top 22% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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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