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Berkshire Hathaway Inc. (BRK.B) Gains But Lags Market: What You Should Know

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Berkshire Hathaway Inc. (BRK.B - Free Report) closed the most recent trading day at $219.86, moving +0.88% from the previous trading session. This change lagged the S&P 500's 1.27% gain on the day. Meanwhile, the Dow gained 1.18%, and the Nasdaq, a tech-heavy index, added 1.87%.

Coming into today, shares of the company had gained 2.81% in the past month. In that same time, the Finance sector lost 1.96%, while the S&P 500 gained 0.37%.

Wall Street will be looking for positivity from BRK.B as it approaches its next earnings report date. In that report, analysts expect BRK.B to post earnings of $2.38 per share. This would mark a year-over-year decline of 25.86%.

For the full year, our Zacks Consensus Estimates are projecting earnings of $9.50 per share and revenue of $223.13 billion, which would represent changes of -2.86% and -12.37%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for BRK.B. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.

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 remained stagnant within the past month. BRK.B currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, BRK.B is holding a Forward P/E ratio of 22.94. For comparison, its industry has an average Forward P/E of 13.8, which means BRK.B is trading at a premium to the group.

Meanwhile, BRK.B's PEG ratio is currently 3.28. 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. The Insurance - Property and Casualty was holding an average PEG ratio of 2.15 at yesterday's closing price.

The Insurance - Property and Casualty industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 120, which puts it in the top 48% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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