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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 $318.93, moving -0.27% from the previous trading session. This change lagged the S&P 500's daily loss of 0.14%. Meanwhile, the Dow lost 0.45%, and the Nasdaq, a tech-heavy index, lost 0.02%.

Heading into today, shares of the company had gained 10.95% over the past month, outpacing the Finance sector's gain of 3.74% and the S&P 500's loss of 0.13% in that time.

Berkshire Hathaway B will be looking to display strength as it nears its next earnings release. On that day, Berkshire Hathaway B is projected to report earnings of $2.84 per share, which would represent year-over-year growth of 32.09%.

It is also important to note the recent changes to analyst estimates for Berkshire Hathaway 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, 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Berkshire Hathaway B is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, Berkshire Hathaway B is currently trading at a Forward P/E ratio of 25.26. Its industry sports an average Forward P/E of 13.95, so we one might conclude that Berkshire Hathaway B is trading at a premium comparatively.

Investors should also note that BRK.B has a PEG ratio of 3.61 right now. 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. Insurance - Property and Casualty stocks are, on average, holding a PEG ratio of 1.86 based on yesterday's closing prices.

The Insurance - Property and Casualty industry is part of the Finance sector. This group has a Zacks Industry Rank of 94, putting it in the top 37% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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