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Berkshire Hathaway B (BRK.B) Dips More Than Broader Markets: What You Should Know

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Berkshire Hathaway B (BRK.B - Free Report) closed the most recent trading day at $272.66, moving -1.89% from the previous trading session. This move lagged the S&P 500's daily loss of 1.59%.

Coming into today, shares of the company had gained 1.41% in the past month. In that same time, the Finance sector lost 2.3%, while the S&P 500 gained 2.53%.

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 $2.52 per share. This would mark year-over-year growth of 10.53%.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $11.23 per share and revenue of $284.12 billion. These totals would mark changes of +22.46% and +15.73%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for BRK.B. Recent revisions tend to reflect the latest 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. 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. The Zacks Consensus EPS estimate has moved 1.58% higher within the past month. BRK.B is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, BRK.B is holding a Forward P/E ratio of 24.75. Its industry sports an average Forward P/E of 14.64, 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 3.54. 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 2.24 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 230, putting 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.

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


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