Why This 1 Value Stock Could Be a Great Addition to Your Portfolio
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.
While you may have an investing style you rely on, finding great stocks is made easier with the Zacks Style Scores. These are complementary indicators that rate stocks based on value, growth, and/or momentum characteristics.
Why Investors Should Pay Attention to This Value Stock
Finding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to highlight the most attractive and discounted stocks.
Berkshire Hathaway B (BRK.B)
Founded in 1889, Berkshire Hathaway is an Omaha, NE-based holding company, which owns more than 90 subsidiaries in insurance, rail roads, utilities, manufacturing services, retail and home building.
BRK.B is a Zacks Rank #2 (Buy) stock, with a Value Style Score of A and VGM Score of B. Shares are currently trading at a forward P/E of 20.7X for the current fiscal year compared to the Insurance - Property and Casualty industry's P/E of 18.8X. Additionally, BRK.B has a PEG Ratio of 3 and a Price/Cash Flow ratio of 18X. Value investors should also note BRK.B's Price/Sales ratio of 2.3X.
Value investors don't just pay attention to a company's valuation ratios; positive earnings play a crucial role, too. One analyst revised their earnings estimate upwards in the last 60 days for fiscal 2022. The Zacks Consensus Estimate has increased $0.99 to $14.85 per share. BRK.B has an average earnings surprise of 22.2%.
With strong valuation and earnings metrics, a good Zacks Rank, and top-tier Value and VGM Style Scores, investors should strongly think about adding BRK.B to their portfolios.
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Berkshire Hathaway Inc. (BRK.B) : Free Stock Analysis Report
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