In the latest trading session, Berkshire Hathaway Inc. (BRK.B) closed at $203.10, marking a -1.75% move from the previous day. This change was narrower than the S&P 500’s daily loss of 1.79%. Elsewhere, the Dow lost 1.86%, while the tech-heavy Nasdaq lost 1.56%.
Heading into today, shares of the company had gained 2.89% over the past month, outpacing the Finance sector’s gain of 2.11% and the S&P 500’s gain of 0.72% in that time.
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 $2.87 per share. This would mark year-over-year growth of 2.87%.
BRK.B’s full-year Zacks Consensus Estimates are calling for earnings of $10.39 per share and revenue of $297.69 billion. These results would represent year-over-year changes of +3.38% and +20.11%, respectively.
Investors might also notice recent changes to analyst estimates for BRK.B. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Within the past 30 days, our consensus EPS projection remained stagnant. BRK.B is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that BRK.B has a Forward P/E ratio of 19.91 right now. This represents a premium compared to its industry’s average Forward P/E of 14.69.
We can also see that BRK.B currently has a PEG ratio of 2.84. 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 1.58 based on yesterday’s closing prices.
The Insurance – Property and Casualty industry is part of the Finance sector. This group has a Zacks Industry Rank of 32, putting it in the top 13% 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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