In the latest close session, Berkshire Hathaway B (BRK.B) was down 1.14% at $478.97. The stock fell short of the S&P 500, which registered a gain of 0.03% for the day. Elsewhere, the Dow lost 0.58%, while the tech-heavy Nasdaq added 0.28%.
The company's stock has dropped by 3.36% in the past month, falling short of the Finance sector's loss of 0.08% and the S&P 500's gain of 0.6%.
The investment community will be paying close attention to the earnings performance of Berkshire Hathaway B in its upcoming release. In that report, analysts expect Berkshire Hathaway B to post earnings of $4.92 per share. This would mark a year-over-year decline of 26.89%. Alongside, our most recent consensus estimate is anticipating revenue of $107.07 billion, indicating a 12.81% upward movement from the same quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $20.89 per share and revenue of $384.28 billion, indicating changes of -5.05% and 0%, respectively, compared to the previous year.
It is also important to note the recent changes to analyst estimates for Berkshire Hathaway B. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.3% lower. Berkshire Hathaway B currently has a Zacks Rank of #4 (Sell).
In the context of valuation, Berkshire Hathaway B is at present trading with a Forward P/E ratio of 24.25. This indicates a premium in contrast to its industry's Forward P/E of 10.15.
The Insurance - Property and Casualty industry is part of the Finance sector. This group has a Zacks Industry Rank of 159, putting it in the bottom 36% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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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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