In the latest trading session, Berkshire Hathaway B (BRK.B) closed at $483.77, marking a +0.2% move from the previous day. The stock's performance was behind the S&P 500's daily gain of 0.24%. Meanwhile, the Dow gained 0.16%, and the Nasdaq, a tech-heavy index, added 0.08%.
Prior to today's trading, shares of the company had gained 3.04% over the past month. This has lagged the Finance sector's gain of 3.3% and outpaced the S&P 500's gain of 2.37% in that time.
Market participants will be closely following the financial results of Berkshire Hathaway B in its upcoming release. The company's upcoming EPS is projected at $4.43, signifying a 13.01% increase compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $88.3 billion, reflecting a 5.43% fall from the equivalent quarter last year.
Investors should also pay attention to any latest changes in analyst estimates for Berkshire Hathaway B. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Berkshire Hathaway B presently features a Zacks Rank of #4 (Sell).
In the context of valuation, Berkshire Hathaway B is at present trading with a Forward P/E ratio of 24.22. This represents a premium compared to its industry's average Forward P/E of 11.12.
Meanwhile, BRK.B's PEG ratio is currently 3.46. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Insurance - Property and Casualty industry was having an average PEG ratio of 1.65.
The Insurance - Property and Casualty industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 65, which puts it in the top 26% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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