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Berkshire Hathaway Inc. (BRK.B) Dips More Than Broader Markets: What You Should Know

Zacks Equity Research
In the latest trading session, Netflix (NFLX) closed at $354.12, marking a +1.73% move from the previous day.

In the latest trading session, Berkshire Hathaway Inc. (BRK.B) closed at $210.64, marking a -0.55% move from the previous day. This change lagged the S&P 500's 0.23% loss on the day. At the same time, the Dow lost 0.01%, and the tech-heavy Nasdaq lost 0.05%.

Coming into today, shares of the company had gained 3.24% in the past month. In that same time, the Finance sector gained 1.71%, while the S&P 500 gained 3.16%.

BRK.B will be looking to display strength as it nears its next earnings release. In that report, analysts expect BRK.B to post earnings of $2.39 per share. This would mark year-over-year growth of 11.68%.

For the full year, our Zacks Consensus Estimates are projecting earnings of $10.84 per share and revenue of $275.35 billion, which would represent changes of +7.86% and +11.1%, respectively, from the prior year.

Any recent changes to analyst estimates for BRK.B should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Within the past 30 days, our consensus EPS projection remained stagnant. BRK.B currently has a Zacks Rank of #2 (Buy).

Valuation is also important, so investors should note that BRK.B has a Forward P/E ratio of 19.55 right now. This represents a premium compared to its industry's average Forward P/E of 14.29.

Also, we should mention that BRK.B has a PEG ratio of 2.79. 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 1.29 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 81, putting it in the top 32% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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