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BRK.B Lags Industry in a Year: Is the Stock Still a Buy?
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Key Takeaways
Berkshire Hathaway's insurance operations generate nearly a quarter of total revenues.
Insurance float reached $176.9B, supplying low-cost capital for investments across the portfolio.
Cash and U.S. Treasury holdings topped $370B at 2025-end, boosting acquisition capacity and income.
Shares of Berkshire Hathaway Inc. (BRK.B - Free Report) have gained 7.3% in a year, underperforming the industry’s 9.8% increase, the Finance sector’s rise of 14.2% and the Zacks S&P 500 composite’s gain of 19.2% in the same time frame.
Berkshire Hathaway is a conglomerate with more than 90 subsidiaries engaged in diverse business activities. This provides it stability in various economic cycles.
BRK.B vs Industry, Sector, S&P 500 in a Year
Image Source: Zacks Investment Research
BRK.B’s peer, Chubb Limited (CB - Free Report) , has gained 36.3% in a year, while another peer, The Progressive Corporation (PGR - Free Report) , has lost 8.4% in the same time frame.
BRK.B is Expensive
Shares of Berkshire Hathaway are trading on par with its industry. The stock is currently trading at a price-to-book multiple of 1.52, but above the five-year median of 1.45. It has a Value Score of D.
Image Source: Zacks Investment Research
Berkshire Hathaway is relatively cheap compared with PGR and CB.
The Case for BRK.B Stock
Berkshire Hathaway’s insurance operations remain central to its business, generating nearly a quarter of total revenues and supporting long-term value creation. Disciplined underwriting, extensive market reach and consistent profitability across economic cycles strengthen the segment. Its greatest advantage is the substantial insurance float, which provides low-cost capital for investments across Berkshire’s diversified portfolio.
The company continues to reshape its investment portfolio to enhance income stability and geographic diversification. Recent moves include increasing stakes in Japanese trading houses, expanding housing-related investments and strengthening airline exposure while reducing holdings in payment companies.
Berkshire’s operating subsidiaries further stabilize earnings. Berkshire Hathaway Energy generates predictable cash flows through its regulated utility operations while expanding renewable-energy capacity. This positions the business to benefit from electrification, decarbonization and the transition to cleaner energy.
BNSF Railway also remains a valuable asset. Its extensive freight network and exposure to essential transportation demand provide a durable competitive advantage, although softer freight volumes and lower fuel-surcharge revenues may put pressure on near-term results. The Manufacturing, Service and Retail businesses add another layer of diversification. Although more sensitive to economic conditions, these operations offer meaningful upside when stronger demand supports higher sales and margins.
Berkshire’s exceptional financial strength remains a key advantage. Cash and U.S. Treasury holdings exceeded $370 billion at the end of 2025, providing substantial acquisition capacity and steady investment income. Meanwhile, insurance float reached $176.9 billion as of March 31, 2026, reinforcing Berkshire’s ability to fund investments efficiently and compound shareholder value over the long term.
Berkshire Hathaway’s Return on Capital
Return on equity (ROE) in the trailing 12 months was 6.6%, underperforming the industry average of 7.4%. Return on equity, a key profitability measure, reflects how effectively a company utilizes its shareholders’ funds. It is noteworthy that though BRK.B’s ROE lags the industry average, the metric has been improving consistently.
The same holds true for return on invested capital (ROIC), which has increased every year since 2020. This reflects BRK.B’s efficiency in utilizing funds to generate income. However, ROIC in the trailing 12 months was 5.4%, lower than the industry average of 5.7%.
Optimistic Analyst Sentiment on BRK.B
The Zacks Consensus Estimate for 2026 revenues indicates a 3.8% year-over-year increase, while the same for earnings implies a 1.2% year-over-year increase. The consensus estimate for 2027 revenues and EPS indicates a year-over-year increase.
The consensus estimate for 2026 and 2027 earnings has moved 0.2% north each, respectively, in the past 30 days.
Image Source: Zacks Investment Research
The consensus estimate for CB’s 2026 earnings has moved north, but that for 2027 has moved south in the past 30 days.
Estimates for PGR’s 2026 earnings have moved north but those for 2027 have moved south in the same time frame.
Parting Thoughts on BRK.B Shares
Berkshire Hathaway has been a cornerstone of investor portfolios for decades, generating steady shareholder value under Warren Buffett’s nearly 60-year leadership. The spotlight now shifts to the next chapter, with Greg Abel as CEO, while Buffett remains executive chairman.
View the Zacks #1 Rank List
Image: Bigstock
BRK.B Lags Industry in a Year: Is the Stock Still a Buy?
Key Takeaways
Shares of Berkshire Hathaway Inc. (BRK.B - Free Report) have gained 7.3% in a year, underperforming the industry’s 9.8% increase, the Finance sector’s rise of 14.2% and the Zacks S&P 500 composite’s gain of 19.2% in the same time frame.
Berkshire Hathaway is a conglomerate with more than 90 subsidiaries engaged in diverse business activities. This provides it stability in various economic cycles.
BRK.B vs Industry, Sector, S&P 500 in a Year
Image Source: Zacks Investment Research
BRK.B’s peer, Chubb Limited (CB - Free Report) , has gained 36.3% in a year, while another peer, The Progressive Corporation (PGR - Free Report) , has lost 8.4% in the same time frame.
BRK.B is Expensive
Shares of Berkshire Hathaway are trading on par with its industry. The stock is currently trading at a price-to-book multiple of 1.52, but above the five-year median of 1.45. It has a Value Score of D.
Image Source: Zacks Investment Research
Berkshire Hathaway is relatively cheap compared with PGR and CB.
The Case for BRK.B Stock
Berkshire Hathaway’s insurance operations remain central to its business, generating nearly a quarter of total revenues and supporting long-term value creation. Disciplined underwriting, extensive market reach and consistent profitability across economic cycles strengthen the segment. Its greatest advantage is the substantial insurance float, which provides low-cost capital for investments across Berkshire’s diversified portfolio.
The company continues to reshape its investment portfolio to enhance income stability and geographic diversification. Recent moves include increasing stakes in Japanese trading houses, expanding housing-related investments and strengthening airline exposure while reducing holdings in payment companies.
Berkshire’s operating subsidiaries further stabilize earnings. Berkshire Hathaway Energy generates predictable cash flows through its regulated utility operations while expanding renewable-energy capacity. This positions the business to benefit from electrification, decarbonization and the transition to cleaner energy.
BNSF Railway also remains a valuable asset. Its extensive freight network and exposure to essential transportation demand provide a durable competitive advantage, although softer freight volumes and lower fuel-surcharge revenues may put pressure on near-term results.
The Manufacturing, Service and Retail businesses add another layer of diversification. Although more sensitive to economic conditions, these operations offer meaningful upside when stronger demand supports higher sales and margins.
Berkshire’s exceptional financial strength remains a key advantage. Cash and U.S. Treasury holdings exceeded $370 billion at the end of 2025, providing substantial acquisition capacity and steady investment income. Meanwhile, insurance float reached $176.9 billion as of March 31, 2026, reinforcing Berkshire’s ability to fund investments efficiently and compound shareholder value over the long term.
Berkshire Hathaway’s Return on Capital
Return on equity (ROE) in the trailing 12 months was 6.6%, underperforming the industry average of 7.4%. Return on equity, a key profitability measure, reflects how effectively a company utilizes its shareholders’ funds. It is noteworthy that though BRK.B’s ROE lags the industry average, the metric has been improving consistently.
The same holds true for return on invested capital (ROIC), which has increased every year since 2020. This reflects BRK.B’s efficiency in utilizing funds to generate income. However, ROIC in the trailing 12 months was 5.4%, lower than the industry average of 5.7%.
Optimistic Analyst Sentiment on BRK.B
The Zacks Consensus Estimate for 2026 revenues indicates a 3.8% year-over-year increase, while the same for earnings implies a 1.2% year-over-year increase. The consensus estimate for 2027 revenues and EPS indicates a year-over-year increase.
The consensus estimate for 2026 and 2027 earnings has moved 0.2% north each, respectively, in the past 30 days.
Image Source: Zacks Investment Research
The consensus estimate for CB’s 2026 earnings has moved north, but that for 2027 has moved south in the past 30 days.
Estimates for PGR’s 2026 earnings have moved north but those for 2027 have moved south in the same time frame.
Parting Thoughts on BRK.B Shares
Berkshire Hathaway has been a cornerstone of investor portfolios for decades, generating steady shareholder value under Warren Buffett’s nearly 60-year leadership. The spotlight now shifts to the next chapter, with Greg Abel as CEO, while Buffett remains executive chairman.
Given analysts' optimism and solid growth prospects, it’s time to add this Zacks Rank #2 (Buy) stock to one’s portfolio. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.