Berkshire Hathaway Inc. (BRK.B) closed at $209.37 in the latest trading session, marking a -0.55% move from the prior day. This move was narrower than the S&P 500's daily loss of 1.44%. Meanwhile, the Dow lost 1.27%, and the Nasdaq, a tech-heavy index, lost 2.06%.
Heading into today, shares of the company had lost 4.72% over the past month, lagging the Finance sector's loss of 3.07% and the S&P 500's loss of 2.61% in that time.
Investors will be hoping for strength from BRK.B as it approaches its next earnings release, which is expected to be November 2, 2018. On that day, BRK.B is projected to report earnings of $2.47 per share, which would represent year-over-year growth of 76.43%.
For the full year, our Zacks Consensus Estimates are projecting earnings of $9.90 per share and revenue of $248.35 billion, which would represent changes of +68.94% and +2.56%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for BRK.B. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. BRK.B is currently a Zacks Rank #1 (Strong Buy).
In terms of valuation, BRK.B is currently trading at a Forward P/E ratio of 21.27. This represents a premium compared to its industry's average Forward P/E of 13.53.
Also, we should mention that BRK.B has a PEG ratio of 3.04. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Insurance - Property and Casualty stocks are, on average, holding a PEG ratio of 1.24 based on yesterday's closing prices.
The Insurance - Property and Casualty industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 94, which puts 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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