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.
