Berkshire Hathaway B (BRK.B) Outpaces Stock Market Gains: What You Should Know
Berkshire Hathaway B (BRK.B) closed at $278.95 in the latest trading session, marking a +1.51% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.69%. Meanwhile, the Dow gained 0.64%, and the Nasdaq, a tech-heavy index, lost 0.2%.
Heading into today, shares of the company had lost 7.56% over the past month, outpacing the Finance sector's loss of 8.14% and the S&P 500's loss of 9.94% in that time.
Investors will be hoping for strength from Berkshire Hathaway B as it approaches its next earnings release. The company is expected to report EPS of $3.10, up 8.01% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $74.92 billion, up 6.15% from the year-ago period.
BRK.B's full-year Zacks Consensus Estimates are calling for earnings of $13.86 per share and revenue of $296.47 billion. These results would represent year-over-year changes of +14.36% and +7.38%, respectively.
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.
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.
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 has moved 8.62% higher. Berkshire Hathaway B currently has a Zacks Rank of #1 (Strong Buy).
In terms of valuation, Berkshire Hathaway B is currently trading at a Forward P/E ratio of 19.83. This valuation marks a premium compared to its industry's average Forward P/E of 13.25.
It is also worth noting that BRK.B currently has a PEG ratio of 2.83. 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 1.67 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 99, putting it in the top 40% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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