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Why the Market Dipped But Berkshire Hathaway B (BRK.B) Gained Today

In the latest trading session, Berkshire Hathaway B (BRK.B) closed at $413.86, marking a +1.04% move from the previous day. The stock's change was more than the S&P 500's daily loss of 0.31%. On the other hand, the Dow registered a gain of 0.67%, and the technology-centric Nasdaq decreased by 1.09%.

Prior to today's trading, shares of the company had gained 0.54% over the past month. This has outpaced the Finance sector's loss of 1.77% and lagged the S&P 500's gain of 2.73% in that time.

Investors will be eagerly watching for the performance of Berkshire Hathaway B in its upcoming earnings disclosure. The company is expected to report EPS of $5.10, up 10.39% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $97.31 billion, up 5.19% from the prior-year quarter.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $18.71 per share and revenue of $368.44 billion. These totals would mark changes of +8.91% and +1.09%, respectively, from last year.

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Any recent changes to analyst estimates for Berkshire Hathaway B should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. The Zacks Consensus EPS estimate has moved 1.24% higher within the past month. Berkshire Hathaway B is currently a Zacks Rank #3 (Hold).

In terms of valuation, Berkshire Hathaway B is currently trading at a Forward P/E ratio of 21.9. This indicates a premium in contrast to its industry's Forward P/E of 12.24.

Meanwhile, BRK.B's PEG ratio is currently 3.13. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Insurance - Property and Casualty industry currently had an average PEG ratio of 1.57 as of yesterday's close.

The Insurance - Property and Casualty industry is part of the Finance sector. This industry, currently bearing a Zacks Industry Rank of 29, finds itself in the top 12% echelons of all 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.

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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Zacks Investment Research