In the latest trading session, Berkshire Hathaway B (BRK.B) closed at $526.81, marking a +1.16% move from the previous day. The stock fell short of the S&P 500, which registered a gain of 1.67% for the day. Elsewhere, the Dow gained 1.07%, while the tech-heavy Nasdaq added 2.5%.
Heading into today, shares of the company had lost 1.53% over the past month, outpacing the Finance sector's loss of 4.45% and the S&P 500's loss of 6.57% in that time.
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 $4.81 per share. This would mark a year-over-year decline of 7.32%. Alongside, our most recent consensus estimate is anticipating revenue of $92.21 billion, indicating a 2.6% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $20.13 per share and revenue of $375.33 billion, which would represent changes of -8.5% and +1.05%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Berkshire Hathaway B. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.56% lower. As of now, Berkshire Hathaway B holds a Zacks Rank of #3 (Hold).
With respect to valuation, Berkshire Hathaway B is currently being traded at a Forward P/E ratio of 25.87. This represents a premium compared to its industry's average Forward P/E of 11.74.
It's also important to note that BRK.B currently trades at a PEG ratio of 3.7. 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 2.11 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 33, finds itself in the top 14% echelons of all 250+ industries.
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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