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Berkshire Hathaway B (BRK.B) Outpaces Stock Market Gains: What You Should Know

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Berkshire Hathaway B (BRK.B - Free Report) closed at $279.92 in the latest trading session, marking a +0.84% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.23%.

Prior to today's trading, shares of the company had lost 3.57% over the past month. This has lagged the Finance sector's loss of 1.32% and the S&P 500's gain of 0.65% in that time.

Investors will be hoping for strength from BRK.B as it approaches its next earnings release. The company is expected to report EPS of $2.79, up 21.3% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $11.41 per share and revenue of $284.12 billion. These totals would mark changes of +24.43% and +15.73%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for BRK.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.

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.

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 #2 (Buy).

Looking at its valuation, BRK.B is holding a Forward P/E ratio of 24.34. This represents a premium compared to its industry's average Forward P/E of 13.81.

It is also worth noting that BRK.B currently has a PEG ratio of 3.48. 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. BRK.B's industry had an average PEG ratio of 1.95 as of yesterday's close.

The Insurance - Property and Casualty industry is part of the Finance sector. This group has a Zacks Industry Rank of 49, putting it in the top 20% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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