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

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In the latest trading session, Berkshire Hathaway Inc. (BRK.B - Free Report) closed at $186.53, marking a +1.66% move from the previous day. This change lagged the S&P 500's 2.29% gain on the day. Meanwhile, the Dow gained 1.99%, and the Nasdaq, a tech-heavy index, added 2.81%.

Coming into today, shares of the company had gained 2.96% in the past month. In that same time, the Finance sector gained 12.36%, while the S&P 500 gained 19.13%.

Wall Street will be looking for positivity from BRK.B as it approaches its next earnings report date. In that report, analysts expect BRK.B to post earnings of $2.42 per share. This would mark year-over-year growth of 7.08%.

For the full year, our Zacks Consensus Estimates are projecting earnings of $10.23 per share and revenue of $210.59 billion, which would represent changes of +4.6% and -17.29%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for BRK.B. These recent revisions tend to reflect the evolving nature of short-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 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.

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 4.26% lower within the past month. BRK.B is currently a Zacks Rank #4 (Sell).

Looking at its valuation, BRK.B is holding a Forward P/E ratio of 17.93. For comparison, its industry has an average Forward P/E of 10.55, which means BRK.B is trading at a premium to the group.

Also, we should mention that BRK.B has a PEG ratio of 2.56. 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. BRK.B's industry had an average PEG ratio of 1.35 as of yesterday's close.

The Insurance - Property and Casualty industry is part of the Finance sector. This group has a Zacks Industry Rank of 93, putting it in the top 37% 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.

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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