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

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Berkshire Hathaway Inc. (BRK.B - Free Report) closed the most recent trading day at $227.11, moving -0.12% from the previous trading session. This move lagged the S&P 500's daily gain of 0.73%. At the same time, the Dow added 0.6%, and the tech-heavy Nasdaq gained 1.13%.

Coming into today, shares of the company had lost 0.56% in the past month. In that same time, the Finance sector gained 0.9%, while the S&P 500 gained 2.95%.

Investors will be hoping for strength from BRK.B as it approaches its next earnings release. On that day, BRK.B is projected to report earnings of $2.53 per share, which would represent year-over-year growth of 9.05%.

Investors might also notice recent changes to analyst estimates for BRK.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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. The Zacks Consensus EPS estimate has moved 0.69% lower within the past month. BRK.B currently has a Zacks Rank of #4 (Sell).

Digging into valuation, BRK.B currently has a Forward P/E ratio of 20.94. Its industry sports an average Forward P/E of 13.95, so we one might conclude that BRK.B is trading at a premium comparatively.

Also, we should mention that BRK.B has a PEG ratio of 2.99. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Insurance - Property and Casualty industry currently had an average PEG ratio of 1.74 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 73, which puts it in the top 29% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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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