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Berkshire Hathaway B (BRK.B) Stock Drops Despite Market Gains: Important Facts to Note

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In the latest trading session, Berkshire Hathaway B (BRK.B - Free Report) closed at $454.57, marking a -0.09% move from the previous day. This change lagged the S&P 500's 0.25% gain on the day. On the other hand, the Dow registered a gain of 0.2%, and the technology-centric Nasdaq increased by 0.56%.

Heading into today, shares of the company had gained 0.11% over the past month, lagging the Finance sector's gain of 1.86% and the S&P 500's gain of 1.65% 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 $4.57, signifying a 7.86% drop compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $96.62 billion, reflecting a 3.66% rise from the equivalent quarter last year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $19.72 per share and a revenue of $368.44 billion, representing changes of +14.78% and +1.09%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Berkshire Hathaway B. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.61% increase. As of now, Berkshire Hathaway B holds a Zacks Rank of #2 (Buy).

From a valuation perspective, Berkshire Hathaway B is currently exchanging hands at a Forward P/E ratio of 23.08. This indicates a premium in contrast to its industry's Forward P/E of 13.83.

Also, we should mention that BRK.B has a PEG ratio of 3.3. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Insurance - Property and Casualty industry was having an average PEG ratio of 1.51.

The Insurance - Property and Casualty industry is part of the Finance sector. At present, this industry carries a Zacks Industry Rank of 20, placing it within the top 8% of over 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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