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Berkshire Hathaway B (BRK.B) Outperforms Broader Market: What You Need to Know

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In the latest trading session, Berkshire Hathaway B (BRK.B - Free Report) closed at $472.61, marking a +0.52% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.03%. At the same time, the Dow added 0.28%, and the tech-heavy Nasdaq lost 0.36%.

Shares of the company have appreciated by 5.92% over the course of the past month, underperforming the Finance sector's gain of 6.92% and outperforming the S&P 500's gain of 4.19%.

Investors will be eagerly watching for the performance of Berkshire Hathaway B in its upcoming earnings disclosure. On that day, Berkshire Hathaway B is projected to report earnings of $4.43 per share, which would represent year-over-year growth of 13.01%. Meanwhile, our latest consensus estimate is calling for revenue of $88.3 billion, down 5.43% from the prior-year quarter.

Investors should also pay attention to any latest changes in analyst estimates for Berkshire Hathaway B. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.

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. The Zacks Consensus EPS estimate has moved 0.15% lower within the past month. At present, Berkshire Hathaway B boasts a Zacks Rank of #4 (Sell).

In the context of valuation, Berkshire Hathaway B is at present trading with a Forward P/E ratio of 23.58. This denotes a premium relative to the industry's average Forward P/E of 11.24.

We can additionally observe that BRK.B currently boasts a PEG ratio of 3.37. 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 1.53 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 82, putting it in the top 33% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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