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Berkshire Hathaway B (BRK.B) Stock Falls Amid Market Uptick: What Investors Need to Know

The latest trading session saw Berkshire Hathaway B (BRK.B) ending at $407.61, denoting a -0.37% adjustment from its last day's close. This move lagged the S&P 500's daily gain of 0.74%. Meanwhile, the Dow experienced a drop of 0.01%, and the technology-dominated Nasdaq saw an increase of 1.68%.

Heading into today, shares of the company had gained 0.24% over the past month, outpacing the Finance sector's loss of 3.65% and lagging the S&P 500's gain of 0.8% in that time.

The investment community will be paying close attention to the earnings performance of Berkshire Hathaway B in its upcoming release. The company is forecasted to report an EPS of $3.41, showcasing a 7.59% downward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $81.03 billion, indicating a 5.11% decline compared to the corresponding quarter of the prior year.

BRK.B's full-year Zacks Consensus Estimates are calling for earnings of $18.50 per share and revenue of $359.6 billion. These results would represent year-over-year changes of +7.68% and -1.34%, respectively.

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Investors should also note any recent changes to analyst estimates for Berkshire Hathaway B. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Currently, Berkshire Hathaway B is carrying a Zacks Rank of #2 (Buy).

Investors should also note Berkshire Hathaway B's current valuation metrics, including its Forward P/E ratio of 22.12. This expresses a premium compared to the average Forward P/E of 13.09 of its industry.

One should further note that BRK.B currently holds a PEG ratio of 3.16. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As of the close of trade yesterday, the Insurance - Property and Casualty industry held an average PEG ratio of 1.18.

The Insurance - Property and Casualty industry is part of the Finance sector. This group has a Zacks Industry Rank of 35, putting it in the top 14% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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Berkshire Hathaway Inc. (BRK.B) : Free Stock Analysis Report

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