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

Berkshire Hathaway Inc. (BRK.B) closed at $203.10 in the latest trading session, marking a -0.87% move from the prior day. This move lagged the S&P 500's daily gain of 0.18%. At the same time, the Dow added 0.14%, and the tech-heavy Nasdaq gained 0.74%.

Heading into today, shares of the company had lost 7.89% over the past month, lagging the Finance sector's loss of 5.63% and the S&P 500's loss of 6.19% in that time.

Wall Street will be looking for positivity from BRK.B as it approaches its next earnings report date. This is expected to be February 22, 2019. In that report, analysts expect BRK.B to post earnings of $2.43 per share. This would mark year-over-year growth of 80%.

BRK.B's full-year Zacks Consensus Estimates are calling for earnings of $9.92 per share and revenue of $262 billion. These results would represent year-over-year changes of +69.28% and +8.2%, respectively.

It is also important to note the recent changes to analyst estimates for BRK.B. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.5% lower within the past month. BRK.B currently has a Zacks Rank of #3 (Hold).

In terms of valuation, BRK.B is currently trading at a Forward P/E ratio of 20.65. This valuation marks a premium compared to its industry's average Forward P/E of 15.27.

Meanwhile, BRK.B's PEG ratio is currently 2.95. 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 1.46 as of yesterday's close.

The Insurance - Property and Casualty industry is part of the Finance sector. This group has a Zacks Industry Rank of 195, putting it in the bottom 24% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

You can find more information on all of these metrics, and much 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.


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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