In the latest trading session, Berkshire Hathaway Inc. (BRK.B) closed at $206.85, marking a +0.31% move from the previous day. This change outpaced the S&P 500's 0.17% loss on the day. Elsewhere, the Dow gained 0.03%, while the tech-heavy Nasdaq lost 0.32%.
Heading into today, shares of the company had gained 2.44% over the past month, outpacing the Finance sector's gain of 1.88% and lagging the S&P 500's gain of 3.07% in that time.
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 $2.71 per share, which would represent a year-over-year decline of 2.87%.
For the full year, our Zacks Consensus Estimates are projecting earnings of $10.53 per share and revenue of $275.35 billion, which would represent changes of +4.78% and +11.1%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for BRK.B. These revisions help to show the ever-changing nature of 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Over the past month, the Zacks Consensus EPS estimate has moved 1.25% higher. BRK.B is currently a Zacks Rank #3 (Hold).
In terms of valuation, BRK.B is currently trading at a Forward P/E ratio of 19.58. Its industry sports an average Forward P/E of 14.43, so we one might conclude that BRK.B is trading at a premium comparatively.
We can also see that BRK.B currently has a PEG ratio of 2.8. 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 1.44 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 46, which puts it in the top 18% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
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