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Berkshire Hathaway Inc. (BRK.B) Gains But Lags Market: What You Should Know

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In the latest trading session, Berkshire Hathaway Inc. (BRK.B - Free Report) closed at $207.97, marking a +0.25% move from the previous day. This move lagged the S&P 500's daily gain of 0.36%. At the same time, the Dow added 0.01%, and the tech-heavy Nasdaq gained 0.27%.

Coming into today, shares of the company had gained 0.34% in the past month. In that same time, the Finance sector gained 2.65%, while the S&P 500 gained 3.98%.

BRK.B will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $2.71, down 2.87% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $10.53 per share and revenue of $275.35 billion, which would represent changes of +4.78% and +11.1%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for BRK.B. These recent revisions tend to reflect the evolving nature of short-term business trends. 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. 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. BRK.B is holding a Zacks Rank of #4 (Sell) right now.

Valuation is also important, so investors should note that BRK.B has a Forward P/E ratio of 19.7 right now. This valuation marks a premium compared to its industry's average Forward P/E of 14.83.

Meanwhile, BRK.B's PEG ratio is currently 2.81. 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. Insurance - Property and Casualty stocks are, on average, holding a PEG ratio of 1.45 based on yesterday's closing prices.

The Insurance - Property and Casualty industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 147, which puts it in the bottom 43% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

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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