Berkshire Hathaway B (BRK.B) Declines More Than Market: Some Information for Investors

Berkshire Hathaway B (BRK.B) closed the latest trading day at $361.10, indicating a -0.69% change from the previous session's end. This change lagged the S&P 500's 0.37% loss on the day. Elsewhere, the Dow saw a downswing of 0.62%, while the tech-heavy Nasdaq depreciated by 0.19%.

Prior to today's trading, shares of the company had gained 1.1% over the past month. This has outpaced the Finance sector's loss of 2.36% and lagged the S&P 500's gain of 1.56% in that time.

The upcoming earnings release of Berkshire Hathaway B will be of great interest to investors. The company is predicted to post an EPS of $1.78, indicating a 41.64% decline compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $76.73 billion, indicating a 1.84% decrease compared to the same quarter of the previous year.

Investors should also note any recent changes to analyst estimates for Berkshire Hathaway B. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Currently, Berkshire Hathaway B is carrying a Zacks Rank of #2 (Buy).

From a valuation perspective, Berkshire Hathaway B is currently exchanging hands at a Forward P/E ratio of 20.02. For comparison, its industry has an average Forward P/E of 12.46, which means Berkshire Hathaway B is trading at a premium to the group.

It is also worth noting that BRK.B currently has a PEG ratio of 2.86. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Insurance - Property and Casualty stocks are, on average, holding a PEG ratio of 1.13 based on yesterday's closing prices.

The Insurance - Property and Casualty industry is part of the Finance sector. At present, this industry carries a Zacks Industry Rank of 89, placing it within the top 36% of over 250 industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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