For those looking to find strong Finance stocks, it is prudent to search for companies in the group that are outperforming their peers. Berkshire Hathaway (BRK.B) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? A quick glance at the company's year-to-date performance in comparison to the rest of the Finance sector should help us answer this question.
Berkshire Hathaway is one of 904 companies in the Finance group. The Finance group currently sits at #7 within the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.
The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. BRK.B is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for BRK.B's full-year earnings has moved 5.35% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Based on the latest available data, BRK.B has gained about 20.24% so far this year. At the same time, Finance stocks have gained an average of 17.99%. This shows that Berkshire Hathaway is outperforming its peers so far this year.
Looking more specifically, BRK.B belongs to the Insurance - Property and Casualty industry, a group that includes 43 individual stocks and currently sits at #204 in the Zacks Industry Rank. This group has gained an average of 16.37% so far this year, so BRK.B is performing better in this area.
Investors in the Finance sector will want to keep a close eye on BRK.B as it attempts to continue its solid performance.
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