Berkshire Hathaway Inc. (BRK.B - Free Report) closed at $223.47 in the latest trading session, marking a -0.43% move from the prior day. This change lagged the S&P 500's daily gain of 0.73%. At the same time, the Dow added 0.51%, and the tech-heavy Nasdaq gained 1.34%.
Heading into today, shares of the company had lost 1.73% over the past month, outpacing the Finance sector's loss of 2.32% and lagging the S&P 500's of 0% in that time.
BRK.B will be looking to display strength as it nears its next earnings release. On that day, BRK.B is projected to report earnings of $2.53 per share, which would represent year-over-year growth of 9.05%.
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 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, 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. The Zacks Consensus EPS estimate has moved 0.69% lower within the past month. BRK.B is currently a Zacks Rank #4 (Sell).
Looking at its valuation, BRK.B is holding a Forward P/E ratio of 20.67. For comparison, its industry has an average Forward P/E of 13.88, which means BRK.B is trading at a premium to the group.
Investors should also note that BRK.B has a PEG ratio of 2.95 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Insurance - Property and Casualty stocks are, on average, holding a PEG ratio of 1.76 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 78, which puts it in the top 31% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.