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Why Berkshire Hathaway B (BRK.B) Dipped More Than Broader Market Today

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Berkshire Hathaway B (BRK.B - Free Report) closed the most recent trading day at $483.48, moving -1.38% from the previous trading session. The stock's change was less than the S&P 500's daily loss of 0.84%. Elsewhere, the Dow saw a downswing of 0.7%, while the tech-heavy Nasdaq depreciated by 0.91%.

The stock of company has fallen by 4.68% in the past month, leading the Finance sector's loss of 0% and undershooting the S&P 500's gain of 1.44%.

Analysts and investors alike will be keeping a close eye on the performance of Berkshire Hathaway B in its upcoming earnings disclosure. On that day, Berkshire Hathaway B is projected to report earnings of $5.24 per share, which would represent a year-over-year decline of 2.6%. Simultaneously, our latest consensus estimate expects the revenue to be $98.5 billion, showing a 5.18% escalation compared to the year-ago quarter.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $20.53 per share and revenue of $403.3 billion, indicating changes of -6.68% and +8.58%, respectively, compared to the previous year.

Investors should also pay attention to any latest changes in analyst estimates for Berkshire Hathaway B. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Within the past 30 days, our consensus EPS projection has moved 0.23% higher. Berkshire Hathaway B is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, Berkshire Hathaway B is currently trading at a Forward P/E ratio of 23.88. This indicates a premium in contrast to its industry's Forward P/E of 11.7.

Also, we should mention that BRK.B has a PEG ratio of 3.41. 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 2.74 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 54, which puts it in the top 22% 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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