In the latest trading session, Berkshire Hathaway B (BRK.B) closed at $341.46, marking a -0.03% move from the previous day. This change was narrower than the S&P 500's daily loss of 0.79%. Meanwhile, the Dow lost 1.07%, and the Nasdaq, a tech-heavy index, lost 2.71%.
Coming into today, shares of the company had gained 1.83% in the past month. In that same time, the Finance sector gained 3.99%, while the S&P 500 gained 4.16%.
Wall Street will be looking for positivity from Berkshire Hathaway B as it approaches its next earnings report date. On that day, Berkshire Hathaway B is projected to report earnings of $6.44 per share, which would represent year-over-year growth of 53.33%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $78.32 billion, up 2.81% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $16.31 per share and revenue of $316.85 billion, which would represent changes of +16.75% and +4.89%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Berkshire Hathaway B. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Berkshire Hathaway B is holding a Zacks Rank of #4 (Sell) right now.
Investors should also note Berkshire Hathaway B's current valuation metrics, including its Forward P/E ratio of 20.95. For comparison, its industry has an average Forward P/E of 14.79, 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 2.99 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Insurance - Property and Casualty industry currently had an average PEG ratio of 1.3 as of yesterday's close.
The Insurance - Property and Casualty industry is part of the Finance sector. This group has a Zacks Industry Rank of 173, putting it in the bottom 32% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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