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Berkshire Hathaway (BRK.B) Gains As Market Dips: What You Should Know
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Berkshire Hathaway (BRK.B - Free Report) closed the most recent trading day at $210.18, moving +0.06% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.22%. Meanwhile, the Dow lost 0.35%, and the Nasdaq, a tech-heavy index, lost 0.28%.
Coming into today, shares of the company had lost 1.91% in the past month. In that same time, the Finance sector gained 1.91%, while the S&P 500 gained 3.82%.
Wall Street will be looking for positivity from BRK.B as it approaches its next earnings report date. The company is expected to report EPS of $2.38, down 25.86% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $9.40 per share and revenue of $223.13 billion, which would represent changes of -3.89% and -12.37%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for BRK.B. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.05% lower. BRK.B is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, BRK.B currently has a Forward P/E ratio of 22.35. This represents a premium compared to its industry's average Forward P/E of 14.49.
Also, we should mention that BRK.B has a PEG ratio of 3.19. 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 was holding an average PEG ratio of 2.07 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 231, which puts it in the bottom 9% 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.
To follow BRK.B in the coming trading sessions, be sure to utilize Zacks.com.
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Berkshire Hathaway (BRK.B) Gains As Market Dips: What You Should Know
Berkshire Hathaway (BRK.B - Free Report) closed the most recent trading day at $210.18, moving +0.06% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.22%. Meanwhile, the Dow lost 0.35%, and the Nasdaq, a tech-heavy index, lost 0.28%.
Coming into today, shares of the company had lost 1.91% in the past month. In that same time, the Finance sector gained 1.91%, while the S&P 500 gained 3.82%.
Wall Street will be looking for positivity from BRK.B as it approaches its next earnings report date. The company is expected to report EPS of $2.38, down 25.86% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $9.40 per share and revenue of $223.13 billion, which would represent changes of -3.89% and -12.37%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for BRK.B. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.05% lower. BRK.B is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, BRK.B currently has a Forward P/E ratio of 22.35. This represents a premium compared to its industry's average Forward P/E of 14.49.
Also, we should mention that BRK.B has a PEG ratio of 3.19. 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 was holding an average PEG ratio of 2.07 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 231, which puts it in the bottom 9% 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.
To follow BRK.B in the coming trading sessions, be sure to utilize Zacks.com.