In the latest trading session, Berkshire Hathaway Inc. (BRK.B) closed at $177.53, marking a -1.92% move from the previous day. This change was narrower than the S&P 500's daily loss of 2.59%. Elsewhere, the Dow lost 2.72%, while the tech-heavy Nasdaq lost 2.19%.
Wall Street will be looking for positivity from BRK.B as it approaches its next earnings report date. On that day, BRK.B is projected to report earnings of $2.10 per share, which would represent a year-over-year decline of 16%.
For the full year, our Zacks Consensus Estimates are projecting earnings of $9.38 per share and revenue of $195.44 billion, which would represent changes of -4.09% and -23.24%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for BRK.B. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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 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. The Zacks Consensus EPS estimate remained stagnant within the past month. BRK.B is holding a Zacks Rank of #4 (Sell) right now.
Digging into valuation, BRK.B currently has a Forward P/E ratio of 19.31. This valuation marks a premium compared to its industry's average Forward P/E of 13.19.
Meanwhile, BRK.B's PEG ratio is currently 2.76. 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. BRK.B's industry had an average PEG ratio of 2.16 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 183, putting it in the bottom 28% 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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