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

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Berkshire Hathaway Inc. (BRK.B - Free Report) closed the most recent trading day at $204.52, moving -0.2% from the previous trading session. This move lagged the S&P 500's daily gain of 0.35%. Elsewhere, the Dow gained 0.03%, while the tech-heavy Nasdaq added 0.7%.

Coming into today, shares of the company had gained 1.2% in the past month. In that same time, the Finance sector gained 2.51%, while the S&P 500 gained 5.14%.

Investors will be hoping for strength from BRK.B as it approaches its next earnings release. On that day, BRK.B is projected to report earnings of $2.39 per share, which would represent year-over-year growth of 11.68%.

BRK.B's full-year Zacks Consensus Estimates are calling for earnings of $10.84 per share and revenue of $275.35 billion. These results would represent year-over-year changes of +7.86% and +11.1%, respectively.

Investors might also notice recent changes to analyst estimates for BRK.B. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. BRK.B is holding a Zacks Rank of #2 (Buy) right now.

In terms of valuation, BRK.B is currently trading at a Forward P/E ratio of 18.91. This represents a premium compared to its industry's average Forward P/E of 13.75.

Meanwhile, BRK.B's PEG ratio is currently 2.7. 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 1.26 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 98, which puts it in the top 39% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.




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