Berkshire Hathaway Inc. (BRK.B) Stock Sinks As Market Gains: What You Should Know
Berkshire Hathaway Inc. (BRK.B) closed the most recent trading day at $208.62, moving -0.32% from the previous trading session. This change lagged the S&P 500's daily gain of 0.28%. Meanwhile, the Dow gained 0.09%, and the Nasdaq, a tech-heavy index, added 0.4%.
Coming into today, shares of the company had lost 0.76% in the past month. In that same time, the Finance sector lost 0.33%, while the S&P 500 lost 0.14%.
Investors will be hoping for strength from BRK.B as it approaches its next earnings release. In that report, analysts expect BRK.B to post earnings of $2.78 per share. This would mark a year-over-year decline of 0.36%.
BRK.B's full-year Zacks Consensus Estimates are calling for earnings of $10.34 per share and revenue of $297.69 billion. These results would represent year-over-year changes of +2.89% and +20.11%, respectively.
Any recent changes to analyst estimates for BRK.B should also be noted by investors. 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. 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 has moved 0.43% lower. BRK.B is currently sporting a Zacks Rank of #4 (Sell).
Investors should also note BRK.B's current valuation metrics, including its Forward P/E ratio of 20.24. Its industry sports an average Forward P/E of 14.76, so we one might conclude that BRK.B is trading at a premium comparatively.
Meanwhile, BRK.B's PEG ratio is currently 2.89. 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. The Insurance - Property and Casualty industry currently had an average PEG ratio of 1.63 as of yesterday's close.
The Insurance - Property and Casualty industry is part of the Finance sector. This group has a Zacks Industry Rank of 64, putting it in the top 26% 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.
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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