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Berkshire Hathaway B (BRK.B) Beats Stock Market Upswing: What Investors Need to Know

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In the latest trading session, Berkshire Hathaway B (BRK.B - Free Report) closed at $500.03, marking a +1.02% move from the previous day. This move outpaced the S&P 500's daily gain of 0.59%. Meanwhile, the Dow gained 0.65%, and the Nasdaq, a tech-heavy index, added 0.44%.

Shares of the company have depreciated by 0.98% over the course of the past month, underperforming the Finance sector's gain of 1.64%, and the S&P 500's gain of 2.72%.

Investors will be eagerly watching for the performance of Berkshire Hathaway B in its upcoming earnings disclosure. In that report, analysts expect Berkshire Hathaway B to post earnings of $3.82 per share. This would mark a year-over-year decline of 18.38%. Alongside, our most recent consensus estimate is anticipating revenue of $95.05 billion, indicating a 2.21% upward movement from the same quarter last year.

For the full year, the Zacks Consensus Estimates project earnings of $20.31 per share and a revenue of $389.25 billion, demonstrating changes of -7.68% and +4.8%, respectively, from the preceding year.

Investors should also pay attention to any latest changes in analyst estimates for Berkshire Hathaway B. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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 varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 2.5% downward. Berkshire Hathaway B presently features a Zacks Rank of #3 (Hold).

In terms of valuation, Berkshire Hathaway B is presently being traded at a Forward P/E ratio of 24.37. For comparison, its industry has an average Forward P/E of 11.31, which means Berkshire Hathaway B is trading at a premium to the group.

One should further note that BRK.B currently holds a PEG ratio of 3.48. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The average PEG ratio for the Insurance - Property and Casualty industry stood at 2.51 at the close of the market yesterday.

The Insurance - Property and Casualty industry is part of the Finance sector. Currently, this industry holds a Zacks Industry Rank of 34, positioning it in the top 14% 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.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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