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Berkshire Hathaway B (BRK.B) Gains As Market Dips: What You Should Know

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In the latest close session, Berkshire Hathaway B (BRK.B - Free Report) was up +1.21% at $532.02. This change outpaced the S&P 500's 1.09% loss on the day. Meanwhile, the Dow experienced a drop of 0.34%, and the technology-dominated Nasdaq saw a decrease of 2.15%.

Heading into today, shares of the company had gained 3.24% over the past month, outpacing the Finance sector's loss of 2.57% and the S&P 500's gain of 2.44%.

The investment community will be paying close attention to the earnings performance of Berkshire Hathaway B in its upcoming release. The company is expected to report EPS of $5.91, down 5.59% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $97.3 billion, indicating a 2.45% growth compared to the corresponding quarter of the prior year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $21.83 per share and a revenue of $392.1 billion, indicating changes of +5.87% and +5.56%, respectively, from the former year.

Investors might also notice recent changes to analyst estimates for Berkshire Hathaway B. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 0.75% higher. Currently, Berkshire Hathaway B is carrying a Zacks Rank of #2 (Buy).

Valuation is also important, so investors should note that Berkshire Hathaway B has a Forward P/E ratio of 24.08 right now. This denotes a premium relative to the industry average Forward P/E of 11.25.

Also, we should mention that BRK.B has a PEG ratio of 2.01. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Insurance - Property and Casualty industry currently had an average PEG ratio of 1.88 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 63, which puts it in the top 26% 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.

To follow BRK.B in the coming trading sessions, be sure to utilize Zacks.com.

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