Berkshire Hathaway Inc. (BRK.B) closed the most recent trading day at $203.67, moving -0.1% from the previous trading session. This change lagged the S&P 500's daily gain of 0.22%. Elsewhere, the Dow gained 0.15%, while the tech-heavy Nasdaq added 0.6%.
Prior to today's trading, shares of the company had gained 1.2% over the past month. This has outpaced the Finance sector's loss of 0.06% and lagged the S&P 500's gain of 2.39% in that time.
Wall Street will be looking for positivity from BRK.B as it approaches its next earnings report date. The company is expected to report EPS of $2.39, up 11.68% from the prior-year quarter.
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.
It is also important to note the recent changes to analyst estimates for BRK.B. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. BRK.B is currently a Zacks Rank #2 (Buy).
Digging into valuation, BRK.B currently has a Forward P/E ratio of 18.82. This represents a premium compared to its industry's average Forward P/E of 13.46.
Also, we should mention that BRK.B has a PEG ratio of 2.69. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Insurance - Property and Casualty stocks are, on average, holding a PEG ratio of 1.26 based on yesterday's closing prices.
The Insurance - Property and Casualty industry is part of the Finance sector. This group has a Zacks Industry Rank of 100, putting it in the top 40% 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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