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

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Berkshire Hathaway B (BRK.B - Free Report) closed the most recent trading day at $286.82, moving -0.23% from the previous trading session. This change lagged the S&P 500's daily gain of 0.3%.

Heading into today, shares of the company had gained 4.9% over the past month, lagging the Finance sector's gain of 7.56% and outpacing the S&P 500's gain of 4.28% in that time.

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 $3.01, up 30.87% from the prior-year quarter.

BRK.B's full-year Zacks Consensus Estimates are calling for earnings of $11.85 per share and revenue of $50.69 billion. These results would represent year-over-year changes of +29.23% and -79.35%, respectively.

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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

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. The Zacks Consensus EPS estimate has moved 0.47% higher within the past month. BRK.B is holding a Zacks Rank of #2 (Buy) right now.

Digging into valuation, BRK.B currently has a Forward P/E ratio of 24.27. This valuation marks a premium compared to its industry's average Forward P/E of 15.42.

Investors should also note that BRK.B has a PEG ratio of 3.47 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 was holding an average PEG ratio of 2.02 at yesterday's closing price.

The Insurance - Property and Casualty industry is part of the Finance sector. This group has a Zacks Industry Rank of 205, putting it in the bottom 20% 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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