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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 at $287.78 in the latest trading session, marking a -1.06% move from the prior day. This change lagged the S&P 500's daily loss of 0.51%.

Heading into today, shares of the company had gained 5.08% over the past month, lagging the Finance sector's gain of 5.35% and outpacing the S&P 500's gain of 3.08% 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 $3.01, up 30.87% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $11.85 per share and revenue of $50.69 billion. These totals would mark changes of +29.23% and -79.35%, respectively, from last year.

It is also important to note the 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.

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

Investors should also note BRK.B's current valuation metrics, including its Forward P/E ratio of 24.56. For comparison, its industry has an average Forward P/E of 15.45, which means BRK.B is trading at a premium to the group.

Meanwhile, BRK.B's PEG ratio is currently 3.51. 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 industry currently had an average PEG ratio of 1.98 as of yesterday's close.

The Insurance - Property and Casualty industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 211, which puts it in the bottom 17% 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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