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Berkshire Hathaway B (BRK.B) Gains As Market Dips: What You Should Know
In the latest trading session, Berkshire Hathaway B (BRK.B - Free Report) closed at $311.90, marking a +0.19% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.02%. Meanwhile, the Dow gained 0.03%, and the Nasdaq, a tech-heavy index, added 5.44%.
Heading into today, shares of the company had gained 1.88% over the past month, lagging the Finance sector's gain of 6.01% and the S&P 500's gain of 4.57% in that time.
Berkshire Hathaway B will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $3.31, up 1.22% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $74.56 billion, up 3.84% from the prior-year quarter.
Any recent changes to analyst estimates for Berkshire Hathaway B should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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 remained stagnant. Berkshire Hathaway B is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Berkshire Hathaway B has a Forward P/E ratio of 18.74 right now. Its industry sports an average Forward P/E of 14.29, so we one might conclude that Berkshire Hathaway B is trading at a premium comparatively.
Also, we should mention that BRK.B has a PEG ratio of 2.68. 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. BRK.B's industry had an average PEG ratio of 1.65 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 162, putting it in the bottom 36% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.