In the latest trading session, Berkshire Hathaway Inc. (BRK.B) closed at $182.83, marking a -0.19% move from the previous day. This change was narrower than the S&P 500's 1.6% loss on the day. Meanwhile, the Dow lost 1.84%, and the Nasdaq, a tech-heavy index, lost 0.95%.
Heading into today, shares of the company had lost 15.83% over the past month, outpacing the Finance sector's loss of 18.8% and lagging the S&P 500's loss of 10.82% in that time.
BRK.B will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $2.53, up 11.95% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $10.69 per share and revenue of $277.48 billion, which would represent changes of +9.3% and +8.98%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for BRK.B. Recent revisions tend to reflect the latest 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. BRK.B is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, BRK.B currently has a Forward P/E ratio of 17.14. This valuation marks a premium compared to its industry's average Forward P/E of 10.85.
It is also worth noting that BRK.B currently has a PEG ratio of 2.45. 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 1.26 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 147, which puts it in the bottom 43% 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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