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

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Berkshire Hathaway B (BRK.B) closed the most recent trading day at $271.77, moving +1.38% from the previous trading session. The stock lagged the S&P 500's daily gain of 2.45%. Meanwhile, the Dow gained 2.15%, and the Nasdaq, a tech-heavy index, added 0.18%.

Coming into today, shares of the company had lost 13.58% in the past month. In that same time, the Finance sector lost 6.21%, while the S&P 500 lost 5.71%.

Wall Street will be looking for positivity from Berkshire Hathaway B as it approaches its next earnings report date. In that report, analysts expect Berkshire Hathaway B to post earnings of $3.32 per share. This would mark year-over-year growth of 12.93%.

Any recent changes to analyst estimates for Berkshire Hathaway B should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 remained stagnant within the past month. Berkshire Hathaway B is currently sporting a Zacks Rank of #3 (Hold).

Investors should also note Berkshire Hathaway B's current valuation metrics, including its Forward P/E ratio of 20.81. Its industry sports an average Forward P/E of 13.03, so we one might conclude that Berkshire Hathaway B is trading at a premium comparatively.

Meanwhile, BRK.B's PEG ratio is currently 2.97. 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 was holding an average PEG ratio of 1.73 at yesterday's closing price.

The Insurance - Property and Casualty industry is part of the Finance sector. This group has a Zacks Industry Rank of 106, putting it in the top 42% 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.

To follow BRK.B in the coming trading sessions, be sure to utilize Zacks.com.


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