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Berkshire Hathaway B (BRK.B) Stock Drops Despite Market Gains: Important Facts to Note

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Berkshire Hathaway B (BRK.B - Free Report) ended the recent trading session at $400.96, demonstrating a -0.28% swing from the preceding day's closing price. The stock fell short of the S&P 500, which registered a gain of 0.32% for the day. Elsewhere, the Dow saw an upswing of 0.38%, while the tech-heavy Nasdaq appreciated by 0.35%.

Heading into today, shares of the company had lost 4.38% over the past month, outpacing the Finance sector's loss of 5.24% and lagging the S&P 500's loss of 2% in that time.

The investment community will be paying close attention to the earnings performance of Berkshire Hathaway B in its upcoming release. The company is forecasted to report an EPS of $3.41, showcasing a 7.59% downward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $81.03 billion, down 5.11% from the prior-year quarter.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $18.50 per share and a revenue of $359.6 billion, signifying shifts of +7.68% and -1.34%, respectively, from the last year.

Investors should also note any recent changes to analyst estimates for Berkshire Hathaway B. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection remained stagnant. As of now, Berkshire Hathaway B holds a Zacks Rank of #2 (Buy).

Valuation is also important, so investors should note that Berkshire Hathaway B has a Forward P/E ratio of 21.74 right now. For comparison, its industry has an average Forward P/E of 12.69, which means Berkshire Hathaway B is trading at a premium to the group.

Investors should also note that BRK.B has a PEG ratio of 3.11 right now. 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. The Insurance - Property and Casualty industry had an average PEG ratio of 1.16 as trading concluded yesterday.

The Insurance - Property and Casualty industry is part of the Finance sector. At present, this industry carries a Zacks Industry Rank of 51, placing it within the top 21% of over 250 industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. 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.


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