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

·3 min read

Berkshire Hathaway B (BRK.B) closed the most recent trading day at $284.21, moving +0.91% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.75%.

Coming into today, shares of the company had gained 1.49% in the past month. In that same time, the Finance sector gained 1.42%, while the S&P 500 lost 0.05%.

BRK.B will be looking to display strength as it nears its next earnings release. In that report, analysts expect BRK.B to post earnings of $3.03 per share. This would mark year-over-year growth of 31.74%.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $11.79 per share and revenue of $320.12 billion. These totals would mark changes of +28.57% and +30.39%, respectively, from last year.

Investors might also notice 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.

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.

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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. BRK.B is currently sporting a Zacks Rank of #1 (Strong Buy).

Investors should also note BRK.B's current valuation metrics, including its Forward P/E ratio of 23.89. For comparison, its industry has an average Forward P/E of 15.1, which means BRK.B is trading at a premium to the group.

Meanwhile, BRK.B's PEG ratio is currently 3.41. 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. The Insurance - Property and Casualty industry currently had an average PEG ratio of 2.1 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 156, which puts it in the bottom 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.

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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