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Berkshire Hathaway B (BRK.B) Surpasses Market Returns: Some Facts Worth Knowing

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In the latest trading session, Berkshire Hathaway B (BRK.B - Free Report) closed at $451.78, marking a +0.93% move from the previous day. The stock outperformed the S&P 500, which registered a daily gain of 0.13%. On the other hand, the Dow registered a gain of 0.55%, and the technology-centric Nasdaq decreased by 0.52%.

Shares of the company witnessed a gain of 0.7% over the previous month, trailing the performance of the Finance sector with its gain of 4.44% and the S&P 500's gain of 3.67%.

Analysts and investors alike will be keeping a close eye on the performance of Berkshire Hathaway B in its upcoming earnings disclosure. The company's upcoming EPS is projected at $4.57, signifying a 7.86% drop compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $96.62 billion, indicating a 3.66% upward movement from the same quarter last year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $19.72 per share and a revenue of $368.44 billion, indicating changes of +14.78% and +1.09%, respectively, from the former year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Berkshire Hathaway B. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Within the past 30 days, our consensus EPS projection has moved 1.91% higher. Berkshire Hathaway B is currently a Zacks Rank #3 (Hold).

Looking at its valuation, Berkshire Hathaway B is holding a Forward P/E ratio of 22.7. For comparison, its industry has an average Forward P/E of 13.56, which means Berkshire Hathaway B is trading at a premium to the group.

We can additionally observe that BRK.B currently boasts a PEG ratio of 3.24. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Insurance - Property and Casualty industry had an average PEG ratio of 1.64.

The Insurance - Property and Casualty industry is part of the Finance sector. This industry, currently bearing a Zacks Industry Rank of 47, finds itself in the top 19% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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