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Berkshire Hathaway B (BRK.B) Exceeds Market Returns: Some Facts to Consider

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Berkshire Hathaway B (BRK.B - Free Report) ended the recent trading session at $465.69, demonstrating a +0.65% swing from the preceding day's closing price. The stock outperformed the S&P 500, which registered a daily gain of 0.47%. On the other hand, the Dow registered a gain of 0.79%, and the technology-centric Nasdaq increased by 0.28%.

The company's shares have seen an increase of 1.31% over the last month, surpassing the Finance sector's loss of 3.28% and falling behind the S&P 500's gain of 3.48%.

The investment community will be closely monitoring the performance of Berkshire Hathaway B in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $4.57, reflecting a 7.86% decrease from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $96.62 billion, indicating a 3.66% increase compared to the same quarter of the previous 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.

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. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

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 last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Berkshire Hathaway B presently features a Zacks Rank of #2 (Buy).

With respect to valuation, Berkshire Hathaway B is currently being traded at a Forward P/E ratio of 23.47. This valuation marks a premium compared to its industry's average Forward P/E of 13.69.

We can additionally observe that BRK.B currently boasts a PEG ratio of 3.35. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. BRK.B's industry had an average PEG ratio of 1.78 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 63, putting it in the top 25% 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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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