U.S. Markets closed
  • S&P 500

    3,465.39
    +11.90 (+0.34%)
     
  • Dow 30

    28,335.57
    -28.13 (-0.10%)
     
  • Nasdaq

    11,548.28
    +42.28 (+0.37%)
     
  • Russell 2000

    1,640.50
    +10.25 (+0.63%)
     
  • Crude Oil

    39.78
    -0.86 (-2.12%)
     
  • Gold

    1,903.40
    -1.20 (-0.06%)
     
  • Silver

    24.70
    -0.01 (-0.04%)
     
  • EUR/USD

    1.1868
    +0.0042 (+0.3560%)
     
  • 10-Yr Bond

    0.8410
    -0.0070 (-0.83%)
     
  • Vix

    27.55
    -0.56 (-1.99%)
     
  • GBP/USD

    1.3038
    -0.0042 (-0.3207%)
     
  • USD/JPY

    104.7200
    -0.1200 (-0.1145%)
     
  • BTC-USD

    13,019.96
    +2.43 (+0.02%)
     
  • CMC Crypto 200

    260.05
    -1.40 (-0.54%)
     
  • FTSE 100

    5,860.28
    +74.63 (+1.29%)
     
  • Nikkei 225

    23,516.59
    +42.29 (+0.18%)
     

Berkshire Hathaway Inc. (BRK.B) Outpaces Stock Market Gains: What You Should Know

Zacks Equity Research
·3 mins read

Berkshire Hathaway Inc. (BRK.B) closed the most recent trading day at $215.15, moving +0.87% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.8%. Elsewhere, the Dow gained 0.43%, while the tech-heavy Nasdaq added 0.5%.

Investors will be hoping for strength from BRK.B as it approaches its next earnings release. On that day, BRK.B is projected to report earnings of $2.38 per share, which would represent a year-over-year decline of 25.86%.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $9.40 per share and revenue of $223.13 billion. These totals would mark changes of -3.89% and -12.37%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for BRK.B. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. The Zacks Consensus EPS estimate has moved 1.05% lower within the past month. BRK.B is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, BRK.B is holding a Forward P/E ratio of 22.69. This valuation marks a premium compared to its industry's average Forward P/E of 13.91.

Investors should also note that BRK.B has a PEG ratio of 3.24 right now. 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 industry currently has a Zacks Industry Rank of 210, which puts it in the bottom 17% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Berkshire Hathaway Inc. (BRK.B) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research