In the latest trading session, Berkshire Hathaway Inc. (BRK.B) closed at $192.14, marking a -1.22% move from the previous day. This change lagged the S&P 500's daily gain of 0.74%. Meanwhile, the Dow gained 0.43%, and the Nasdaq, a tech-heavy index, added 1.67%.
Coming into today, shares of the company had gained 8.76% in the past month. In that same time, the Finance sector gained 6.7%, while the S&P 500 gained 5.51%.
Investors will be hoping for strength from BRK.B as it approaches its next earnings release. In that report, analysts expect BRK.B to post earnings of $2.18 per share. This would mark a year-over-year decline of 12.8%.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $9.66 per share and revenue of $227.80 billion. These totals would mark changes of -1.23% and -10.53%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for BRK.B. 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. Within the past 30 days, our consensus EPS projection has moved 2.67% higher. BRK.B is holding a Zacks Rank of #2 (Buy) right now.
Investors should also note BRK.B's current valuation metrics, including its Forward P/E ratio of 20.14. This represents a premium compared to its industry's average Forward P/E of 14.18.
Also, we should mention that BRK.B has a PEG ratio of 2.88. 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. The Insurance - Property and Casualty industry currently had an average PEG ratio of 2.59 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 162, putting it in the bottom 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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