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Berkshire Hathaway B (BRK.B) Gains But Lags Market: What You Should Know

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In the latest trading session, Berkshire Hathaway B (BRK.B - Free Report) closed at $303.85, marking a +0.93% move from the previous day. This change lagged the S&P 500's 1.3% gain on the day. Meanwhile, the Dow gained 0.98%, and the Nasdaq, a tech-heavy index, added 7.48%.

Coming into today, shares of the company had lost 2.33% in the past month. In that same time, the Finance sector lost 10.17%, while the S&P 500 lost 2.95%.

Wall Street will be looking for positivity from Berkshire Hathaway B as it approaches its next earnings report date. In that report, analysts expect Berkshire Hathaway B to post earnings of $2.79 per share. This would mark a year-over-year decline of 12.26%. Meanwhile, our latest consensus estimate is calling for revenue of $74.47 billion, up 5.16% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $18.97 per share and revenue of $305.9 billion. These totals would mark changes of +35.79% and +1.26%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for Berkshire Hathaway 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Within the past 30 days, our consensus EPS projection has moved 14.14% higher. Berkshire Hathaway B is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, Berkshire Hathaway B is holding a Forward P/E ratio of 15.88. This represents a premium compared to its industry's average Forward P/E of 12.79.

Also, we should mention that BRK.B has a PEG ratio of 2.27. 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. The Insurance - Property and Casualty industry currently had an average PEG ratio of 1.14 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 73, which puts it in the top 29% 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.

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