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

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Berkshire Hathaway B (BRK.B - Free Report) closed at $370.43 in the latest trading session, marking a +0.7% move from the prior day. This move outpaced the S&P 500's daily gain of 0.07%. Meanwhile, the Dow gained 0.02%, and the Nasdaq, a tech-heavy index, added 0.01%.

Coming into today, shares of the company had gained 4.34% in the past month. In that same time, the Finance sector gained 1.7%, while the S&P 500 gained 0.38%.

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 $4.74 per share, which would represent year-over-year growth of 34.28%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $76.41 billion, down 0.68% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $15.82 per share and revenue of $331.03 billion. These totals would mark changes of +13.24% and +9.58%, respectively, from last year.

It is also important to note the 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.

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 has moved 5.41% lower. Berkshire Hathaway B currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, Berkshire Hathaway B is holding a Forward P/E ratio of 23.26. This valuation marks a premium compared to its industry's average Forward P/E of 14.57.

We can also see that BRK.B currently has a PEG ratio of 3.32. 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 1.29 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 59, which puts it in the top 24% 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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