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Berkshire Hathaway Inc. (BRK.B) Dips More Than Broader Markets: What You Should Know

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In the latest trading session, Berkshire Hathaway Inc. (BRK.B - Free Report) closed at $180.85, marking a -0.8% move from the previous day. This change lagged the S&P 500's daily loss of 0.36%. Elsewhere, the Dow lost 0.65%, while the tech-heavy Nasdaq added 0.15%.

Investors will be hoping for strength from BRK.B as it approaches its next earnings release. The company is expected to report EPS of $2.10, down 16% from the prior-year quarter.

BRK.B's full-year Zacks Consensus Estimates are calling for earnings of $9.38 per share and revenue of $195.44 billion. These results would represent year-over-year changes of -4.09% and -23.24%, respectively.

It is also important to note the recent changes to analyst estimates for BRK.B. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

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.

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. The Zacks Consensus EPS estimate has moved 3.35% lower within the past month. BRK.B currently has a Zacks Rank of #4 (Sell).

Valuation is also important, so investors should note that BRK.B has a Forward P/E ratio of 19.44 right now. Its industry sports an average Forward P/E of 13.64, so we one might conclude that BRK.B is trading at a premium comparatively.

It is also worth noting that BRK.B currently has a PEG ratio of 2.78. 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 2.12 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 198, which puts it in the bottom 23% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.


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