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Here's Why Berkshire Hathaway B (BRK.B) Fell More Than Broader Market
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Berkshire Hathaway B (BRK.B - Free Report) closed the latest trading day at $345.66, indicating a -0.79% change from the previous session's end. The stock's performance was behind the S&P 500's daily loss of 0.63%. At the same time, the Dow lost 0.51%, and the tech-heavy Nasdaq lost 0.63%.
Shares of the company witnessed a loss of 5.27% over the previous month, trailing the performance of the Finance sector with its loss of 2.46% and the S&P 500's loss of 2.35%.
The investment community will be paying close attention to the earnings performance of Berkshire Hathaway B in its upcoming release. The company is predicted to post an EPS of $4.74, indicating a 34.28% growth compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $76.41 billion, indicating a 0.68% decline compared to the corresponding quarter of the prior year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $15.82 per share and revenue of $331.03 billion, indicating changes of +13.24% and +9.58%, respectively, compared to the previous year.
It is also important to note the recent changes to analyst estimates for Berkshire Hathaway B. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Currently, Berkshire Hathaway B is carrying a Zacks Rank of #4 (Sell).
Looking at valuation, Berkshire Hathaway B is presently trading at a Forward P/E ratio of 22.03. This represents a premium compared to its industry's average Forward P/E of 14.9.
We can additionally observe that BRK.B currently boasts a PEG ratio of 3.15. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Insurance - Property and Casualty stocks are, on average, holding a PEG ratio of 1.26 based on yesterday's closing prices.
The Insurance - Property and Casualty industry is part of the Finance sector. Currently, this industry holds a Zacks Industry Rank of 70, positioning it in the top 28% 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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Here's Why Berkshire Hathaway B (BRK.B) Fell More Than Broader Market
Berkshire Hathaway B (BRK.B - Free Report) closed the latest trading day at $345.66, indicating a -0.79% change from the previous session's end. The stock's performance was behind the S&P 500's daily loss of 0.63%. At the same time, the Dow lost 0.51%, and the tech-heavy Nasdaq lost 0.63%.
Shares of the company witnessed a loss of 5.27% over the previous month, trailing the performance of the Finance sector with its loss of 2.46% and the S&P 500's loss of 2.35%.
The investment community will be paying close attention to the earnings performance of Berkshire Hathaway B in its upcoming release. The company is predicted to post an EPS of $4.74, indicating a 34.28% growth compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $76.41 billion, indicating a 0.68% decline compared to the corresponding quarter of the prior year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $15.82 per share and revenue of $331.03 billion, indicating changes of +13.24% and +9.58%, respectively, compared to the previous year.
It is also important to note the recent changes to analyst estimates for Berkshire Hathaway B. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Currently, Berkshire Hathaway B is carrying a Zacks Rank of #4 (Sell).
Looking at valuation, Berkshire Hathaway B is presently trading at a Forward P/E ratio of 22.03. This represents a premium compared to its industry's average Forward P/E of 14.9.
We can additionally observe that BRK.B currently boasts a PEG ratio of 3.15. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Insurance - Property and Casualty stocks are, on average, holding a PEG ratio of 1.26 based on yesterday's closing prices.
The Insurance - Property and Casualty industry is part of the Finance sector. Currently, this industry holds a Zacks Industry Rank of 70, positioning it in the top 28% 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.