Berkshire Hathaway (BRK.B) Gains As Market Dips: What You Should Know
Berkshire Hathaway (BRK.B) closed at $211.65 in the latest trading session, marking a +0.35% move from the prior day. This change outpaced the S&P 500's 0.15% loss on the day. At the same time, the Dow lost 0.07%, and the tech-heavy Nasdaq lost 0.47%.
Coming into today, shares of the company had lost 3.95% in the past month. In that same time, the Finance sector gained 0.38%, while the S&P 500 gained 3.19%.
Wall Street will be looking for positivity from BRK.B as it approaches its next earnings report date. In that report, analysts expect BRK.B to post earnings of $2.38 per share. This would mark a year-over-year decline of 25.86%.
BRK.B's full-year Zacks Consensus Estimates are calling for earnings of $9.40 per share and revenue of $223.13 billion. These results would represent year-over-year changes of -3.89% and -12.37%, respectively.
Investors should also note any 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 1.05% lower. BRK.B currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, BRK.B is holding a Forward P/E ratio of 22.44. For comparison, its industry has an average Forward P/E of 14.23, which means BRK.B is trading at a premium to the group.
Also, we should mention that BRK.B has a PEG ratio of 3.21. 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 industry currently 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 230, which puts it in the bottom 10% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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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.