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Berkshire Hathaway Inc. (BRK.B) Outpaces Stock Market Gains: What You Should Know

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Berkshire Hathaway Inc. (BRK.B - Free Report) closed the most recent trading day at $200.02, moving +1.24% from the previous trading session. This change outpaced the S&P 500's 0.86% gain on the day. Meanwhile, the Dow gained 1.14%, and the Nasdaq, a tech-heavy index, added 0.38%.

Prior to today's trading, shares of the company had lost 9.16% over the past month. This has lagged the Finance sector's loss of 8.73% and the S&P 500's loss of 7.55% in that time.

Wall Street will be looking for positivity from BRK.B as it approaches its next earnings report date. This is expected to be February 22, 2019. In that report, analysts expect BRK.B to post earnings of $2.36 per share. This would mark year-over-year growth of 74.81%.

BRK.B's full-year Zacks Consensus Estimates are calling for earnings of $9.76 per share and revenue of $262 billion. These results would represent year-over-year changes of +66.55% and +8.2%, respectively.

Any recent changes to analyst estimates for BRK.B should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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 1.61% lower. BRK.B currently has a Zacks Rank of #3 (Hold).

Investors should also note BRK.B's current valuation metrics, including its Forward P/E ratio of 20.24. This valuation marks a premium compared to its industry's average Forward P/E of 15.17.

Investors should also note that BRK.B has a PEG ratio of 2.89 right now. 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. The Insurance - Property and Casualty was holding an average PEG ratio of 1.39 at yesterday's closing price.

The Insurance - Property and Casualty industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 192, which puts it in the bottom 25% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.




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