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

Zacks Equity Research

Berkshire Hathaway Inc. (BRK.B) closed the most recent trading day at $226.62, moving -0.89% from the previous trading session. This move lagged the S&P 500's daily loss of 0.29%. At the same time, the Dow lost 0.46%, and the tech-heavy Nasdaq lost 0.27%.

Heading into today, shares of the company had gained 1.21% over the past month, lagging the Finance sector's gain of 2.76% and the S&P 500's gain of 4.56% 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 $2.59 per share, which would represent year-over-year growth of 11.64%.

Any recent changes to analyst estimates for BRK.B should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. 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. 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 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. BRK.B is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, BRK.B is currently trading at a Forward P/E ratio of 20.91. This valuation marks a premium compared to its industry's average Forward P/E of 13.91.

Also, we should mention that BRK.B has a PEG ratio of 2.99. 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. The Insurance - Property and Casualty was holding an average PEG ratio of 1.44 at yesterday's closing price.

The Insurance - Property and Casualty industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 58, which puts it in the top 23% 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.

To follow BRK.B in the coming trading sessions, be sure to utilize Zacks.com.


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