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Berkshire Hathaway Inc. (BRK.B) Outpaces Stock Market Gains: What You Should Know

In the latest trading session, Berkshire Hathaway Inc. (BRK.B) closed at $199.26, marking a +1.78% move from the previous day. This move outpaced the S&P 500's daily gain of 0.72%. Elsewhere, the Dow gained 0.89%, while the tech-heavy Nasdaq added 1.47%.

Prior to today's trading, shares of the company had gained 9.48% over the past month. This has outpaced the Finance sector's gain of 3.41% and the S&P 500's gain of 5.85% in that time.

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 $2.18 per share. This would mark a year-over-year decline of 12.8%.

BRK.B's full-year Zacks Consensus Estimates are calling for earnings of $9.66 per share and revenue of $227.80 billion. These results would represent year-over-year changes of -1.23% and -10.53%, respectively.

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. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 3.04% higher. BRK.B is holding a Zacks Rank of #2 (Buy) right now.

Valuation is also important, so investors should note that BRK.B has a Forward P/E ratio of 20.27 right now. This valuation marks a premium compared to its industry's average Forward P/E of 14.53.

It is also worth noting that BRK.B currently has a PEG ratio of 2.9. 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. The Insurance - Property and Casualty industry currently had an average PEG ratio of 2.01 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 174, which puts it in the bottom 32% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming 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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