In the latest trading session, Berkshire Hathaway B (BRK.B) closed at $498.08, marking a -1.97% move from the previous day. This move lagged the S&P 500's daily gain of 0.47%. Elsewhere, the Dow gained 0.04%, while the tech-heavy Nasdaq added 0.9%.
The company's shares have seen an increase of 1.8% over the last month, surpassing the Finance sector's gain of 0.35% and the S&P 500's loss of 0.16%.
Analysts and investors alike will be keeping a close eye on the performance of Berkshire Hathaway B in its upcoming earnings disclosure. The company is forecasted to report an EPS of $5.19, showcasing a 22.88% downward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $102.89 billion, showing a 8.4% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates project earnings of $21.14 per share and a revenue of $380.09 billion, demonstrating changes of -3.91% and +2.33%, respectively, from the preceding year.
It is also important to note the 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.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Berkshire Hathaway B is holding a Zacks Rank of #4 (Sell) right now.
In terms of valuation, Berkshire Hathaway B is presently being traded at a Forward P/E ratio of 24.15. This represents a premium compared to its industry average Forward P/E of 10.71.
The Insurance - Property and Casualty industry is part of the Finance sector. With its current Zacks Industry Rank of 143, this industry ranks in the bottom 42% of all industries, numbering over 250.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming 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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