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Berkshire Hathaway B (BRK.B) Outperforms Broader Market: What You Need to Know

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The most recent trading session ended with Berkshire Hathaway B (BRK.B - Free Report) standing at $337.41, reflecting a +1.72% shift from the previouse trading day's closing. The stock's change was more than the S&P 500's daily gain of 1.2%. At the same time, the Dow added 1.58%, and the tech-heavy Nasdaq gained 1.16%.

The company's stock has dropped by 5.31% in the past month, falling short of the Finance sector's loss of 5.07% and the S&P 500's loss of 3.58%.

Investors will be eagerly watching for the performance of Berkshire Hathaway B in its upcoming earnings disclosure. On that day, Berkshire Hathaway B is projected to report earnings of $4.74 per share, which would represent year-over-year growth of 34.28%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $76.41 billion, down 0.68% from the year-ago period.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $15.82 per share and revenue of $331.03 billion, indicating changes of +13.24% and +9.58%, respectively, compared to the previous year.

Investors should also take note of any recent adjustments to analyst estimates for Berkshire Hathaway 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.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. As of now, Berkshire Hathaway B holds a Zacks Rank of #3 (Hold).

In terms of valuation, Berkshire Hathaway B is currently trading at a Forward P/E ratio of 20.97. This expresses a premium compared to the average Forward P/E of 14.95 of its industry.

One should further note that BRK.B currently holds a PEG ratio of 3. 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 1.28 as of yesterday's close.

The Insurance - Property and Casualty industry is part of the Finance sector. At present, this industry carries a Zacks Industry Rank of 60, placing it within the top 24% of over 250 industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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