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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 $251.50, moving -1.22% from the previous trading session. This change lagged the S&P 500's 0.16% loss on the day. At the same time, the Dow lost 0.39%, and the tech-heavy Nasdaq gained 0.09%.

BRK.B will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $2.58, up 7.05% from the prior-year quarter.

BRK.B's full-year Zacks Consensus Estimates are calling for earnings of $10.67 per share and revenue of $279.2 billion. These results would represent year-over-year changes of +16.36% and +13.72%, respectively.

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 a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.61% lower. BRK.B is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that BRK.B has a Forward P/E ratio of 24.38 right now. For comparison, its industry has an average Forward P/E of 15.15, which means BRK.B is trading at a premium to the group.

Investors should also note that BRK.B has a PEG ratio of 3.48 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. Insurance - Property and Casualty stocks are, on average, holding a PEG ratio of 2.18 based on yesterday's closing prices.

The Insurance - Property and Casualty industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 106, which puts it in the top 42% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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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