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Berkshire Hathaway B (BRK.B) Stock Jumps 5.8%: Will It Continue to Soar?

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Berkshire Hathaway B (BRK.B - Free Report) shares ended the last trading session 5.8% higher at $521.41. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 0.7% loss over the past four weeks.

The surge in price reflects investors' optimism on the announcement of a 90-day pause on tariffs imposed by President Trump on most countries, though a 10% tariff stays in place.

Berkshire is poised to grow on solid insurance business that drive earnings and generates maximum return on equity. Berkshire Hathaway is a conglomerate with more than 90 subsidiaries engaged in diverse business activities - ranging from insurance to consumer products- lowering concentration risk.

Holding shares of Berkshire Hathaway renders dynamism to shareholders’ portfolio. It gives a feel of investing in mutual funds apart from rewarding investors with higher returns at the same time. But above all, the company has Warren Buffett at its helm, who has been creating tremendous value for shareholders over nearly six decades with his unique skills. 

This company is expected to post quarterly earnings of $4.81 per share in its upcoming report, which represents a year-over-year change of -7.3%. Revenues are expected to be $92.21 billion, up 2.6% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For Berkshire Hathaway B, the consensus EPS estimate for the quarter has been revised marginally lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on BRK.B going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Berkshire Hathaway B is a member of the Zacks Insurance - Property and Casualty industry. One other stock in the same industry, Travelers (TRV - Free Report) , finished the last trading session 4.9% higher at $248.10. TRV has returned -7.1% over the past month.

Travelers' consensus EPS estimate for the upcoming report has changed +0.3% over the past month to $0.62. Compared to the company's year-ago EPS, this represents a change of -86.8%. Travelers currently boasts a Zacks Rank of #3 (Hold).


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