Berkshire Hathaway B (BRK.B) closed at $288.51 in the latest trading session, marking a +0.96% move from the prior day. This change lagged the S&P 500's 1.06% gain on the day. At the same time, the Dow added 0.71%, and the tech-heavy Nasdaq gained 0.09%.
Heading into today, shares of the company had lost 5.23% over the past month, lagging the Finance sector's loss of 0.38% and the S&P 500's loss of 1.14% in that time.
Wall Street will be looking for positivity from Berkshire Hathaway B as it approaches its next earnings report date. On that day, Berkshire Hathaway B is projected to report earnings of $3.10 per share, which would represent year-over-year growth of 8.01%. Our most recent consensus estimate is calling for quarterly revenue of $74.92 billion, up 6.15% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $13.86 per share and revenue of $296.47 billion. These totals would mark changes of +14.36% and +7.38%, respectively, from last year.
Any recent changes to analyst estimates for Berkshire Hathaway B should also be noted by investors. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Over the past month, the Zacks Consensus EPS estimate has moved 8.62% higher. Berkshire Hathaway B is currently a Zacks Rank #1 (Strong Buy).
Digging into valuation, Berkshire Hathaway B currently has a Forward P/E ratio of 20.62. This valuation marks a premium compared to its industry's average Forward P/E of 12.65.
Also, we should mention that BRK.B has a PEG ratio of 2.95. 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 1.7 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 147, which puts it in the bottom 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.
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