Berkshire Hathaway B (BRK.B) closed at $470.13 in the latest trading session, marking a -1.3% move from the prior day. The stock's performance was behind the S&P 500's daily loss of 0.4%. Meanwhile, the Dow experienced a drop of 0.98%, and the technology-dominated Nasdaq saw an increase of 0.18%.
Coming into today, shares of the company had lost 2.84% in the past month. In that same time, the Finance sector gained 4.41%, while the S&P 500 gained 4.97%.
Market participants will be closely following the financial results of Berkshire Hathaway B in its upcoming release. The company is expected to report EPS of $5.24, down 2.6% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $98.5 billion, showing a 5.18% escalation compared to the year-ago quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $20.53 per share and revenue of $403.3 billion. These totals would mark changes of -6.68% and +8.58%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Berkshire Hathaway B. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Berkshire Hathaway B is currently sporting a Zacks Rank of #3 (Hold).
With respect to valuation, Berkshire Hathaway B is currently being traded at a Forward P/E ratio of 23.2. This signifies a premium in comparison to the average Forward P/E of 11.81 for its industry.
It's also important to note that BRK.B currently trades at a PEG ratio of 3.31. 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 industry currently had an average PEG ratio of 2.65 as of yesterday's close.
The Insurance - Property and Casualty industry is part of the Finance sector. This industry, currently bearing a Zacks Industry Rank of 139, finds itself in the bottom 44% echelons of all 250+ industries.
The Zacks Industry Rank is ordered 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Berkshire Hathaway Inc. (BRK.B): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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