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

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In the latest trading session, Berkshire Hathaway Inc. (BRK.B - Free Report) closed at $180.47, marking a +1.27% move from the previous day. This change outpaced the S&P 500's 1.15% gain on the day. At the same time, the Dow added 2.39%, and the tech-heavy Nasdaq lost 0.45%.

Prior to today's trading, shares of the company had lost 18.28% over the past month. This has was narrower than the Finance sector's loss of 31.3% and the S&P 500's loss of 24.07% 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 $2.41 per share, which would represent year-over-year growth of 6.64%.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $10.69 per share and revenue of $277.48 billion. These totals would mark changes of +9.3% and +8.98%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for BRK.B. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.

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. The Zacks Consensus EPS estimate has moved 1.61% lower within the past month. BRK.B is holding a Zacks Rank of #4 (Sell) right now.

Investors should also note BRK.B's current valuation metrics, including its Forward P/E ratio of 16.68. Its industry sports an average Forward P/E of 9.39, so we one might conclude that BRK.B is trading at a premium comparatively.

Meanwhile, BRK.B's PEG ratio is currently 2.38. 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. BRK.B's industry had an average PEG ratio of 1.21 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 158, which puts it in the bottom 39% 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.

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


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