In the latest trading session, Berkshire Hathaway Inc. (BRK.B) closed at $206.01, marking a +1.46% move from the previous day. This change outpaced the S&P 500's 1.29% gain on the day. Elsewhere, the Dow gained 1.49%, while the tech-heavy Nasdaq added 1.46%.
Prior to today's trading, shares of the company had gained 3.71% over the past month. This has lagged the Finance sector's gain of 4.44% and the S&P 500's gain of 4.57% in that time.
Investors will be hoping for strength from BRK.B as it approaches its nex t earnings release. The company is expected to report EPS of $2.23, up 65.19% from the prior-year quarter.
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 a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. BRK.B currently has a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that BRK.B has a Forward P/E ratio of 19.5 right now. Its industry sports an average Forward P/E of 12.84, so we one might conclude that BRK.B is trading at a premium comparatively.
Also, we should mention that BRK.B has a PEG ratio of 2.79. 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. BRK.B's industry had an average PEG ratio of 1.22 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 84, which puts it in the top 33% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.