Markets

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

Berkshire Hathaway Inc. (BRK.B) closed at $203.48 in the latest trading session, marking a -0.82% move from the prior day. This change lagged the S&P 500's daily gain of 0.09%. At the same time, the Dow added 0.09%, and the tech-heavy Nasdaq gained 0.62%.

Heading into today, shares of the company had gained 0.26% over the past month, lagging the Finance sector's gain of 1.07% and the S&P 500's gain of 2.08% in that time.

Investors will be hoping for strength from BRK.B as it approaches its next earnings release. In that report, analysts expect BRK.B to post earnings of $2.71 per share. This would mark a year-over-year decline of 2.87%.

BRK.B's full-year Zacks Consensus Estimates are calling for earnings of $10.53 per share and revenue of $275.35 billion. These results would represent year-over-year changes of +4.78% and +11.1%, respectively.

Any recent changes to analyst estimates for BRK.B should also be noted by investors. 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. 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. Over the past month, the Zacks Consensus EPS estimate has moved 1.25% higher. BRK.B is currently sporting a Zacks Rank of #4 (Sell).

In terms of valuation, BRK.B is currently trading at a Forward P/E ratio of 19.48. This represents a premium compared to its industry's average Forward P/E of 14.44.

Investors should also note that BRK.B has a PEG ratio of 2.78 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company'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 52, putting it in the top 21% 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.

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.

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