Berkshire Hathaway B (BRK.B) closed at $480.48 in the latest trading session, marking a -1.86% move from the prior day. The stock trailed the S&P 500, which registered a daily gain of 0.48%. On the other hand, the Dow registered a loss of 0.02%, and the technology-centric Nasdaq increased by 0.94%.
The stock of company has fallen by 1.65% in the past month, lagging the Finance sector's gain of 3.5% and the S&P 500's gain of 5.13%.
Investors will be eagerly watching for the performance of Berkshire Hathaway B in its upcoming earnings disclosure. The company's upcoming EPS is projected at $5.24, signifying a 2.60% drop compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $98.5 billion, indicating a 5.18% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $20.53 per share and revenue of $403.3 billion, which would represent changes of -6.68% and +8.58%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Berkshire Hathaway B. These latest adjustments often mirror the shifting dynamics of short-term business patterns. 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, 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 past month, the Zacks Consensus EPS estimate remained stagnant. Right now, Berkshire Hathaway B possesses a Zacks Rank of #3 (Hold).
From a valuation perspective, Berkshire Hathaway B is currently exchanging hands at a Forward P/E ratio of 23.85. For comparison, its industry has an average Forward P/E of 12, which means Berkshire Hathaway B is trading at a premium to the group.
Investors should also note that BRK.B has a PEG ratio of 3.41 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Insurance - Property and Casualty was holding an average PEG ratio of 2.73 at yesterday's closing price.
The Insurance - Property and Casualty industry is part of the Finance sector. This group has a Zacks Industry Rank of 49, putting it in the top 20% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. 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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