Berkshire Hathaway B (BRK.B – Free Report) closed at $ 280.93 in the last trading session, marking a movement of -1.13% from the previous day. This change is smaller than the 0.69% daily loss of the S&P 500.
Prior to today’s stock market, the company’s shares had gained 2.36% over the past month. This exceeded the 0.64% gain of the financial sector and the 2.58% loss of the S&P 500 during this period.
Wall Street will research BRK.B for positivity as its next earnings release date approaches. On that day, BRK.B is expected to report earnings of $ 3.03 per share, which would represent 31.74% year-over-year growth.
For the full year, our Zacks consensus estimates suggest analysts expect earnings of $ 11.79 per share and revenue of $ 320.12 billion. These totals would mark changes of + 28.57% and + 30.39%, respectively, from a year ago.
Any recent changes in analysts’ estimates for BRK.B should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can take positive estimate revisions as a sign of optimism about the company’s business prospects.
Research indicates that these estimate revisions are directly correlated with short-term stock price dynamics. Investors can take advantage of this by using the Zacks Ranking. This model takes into account these changes in estimate and provides a simple and workable scoring system.
Ranging from # 1 (strong buy) to # 5 (strong sell), the Zacks ranking system has a proven and externally verified track record of outperformance, with # 1 stocks returning an average of + 25% per year since. 1988. The Zacks Consensus The EPS estimate has remained stagnant over the past month. BRK.B is currently a Zacks Rank # 1 (strong buy).
Digging into the valuation, BRK.B currently has a forward P / E ratio of 24.1. For comparison, its industry has an average forward P / E of 15.17, which means BRK.B is trading at a premium to the group.
It should also be noted that BRK.B currently has a PEG ratio of 3.44. This popular metric is similar to the well-known P / E ratio, except that the PEG ratio also takes into account the expected rate of earnings growth of the company. Insurance – P&C stocks have, on average, a PEG ratio of 2.11 based on yesterday’s closing prices.
The Insurance – P&C sector is part of the Finance sector. This industry currently has a Zacks Industry Rank of 168, which places it in the lowest 34% of all 250+ industries.
The Zacks Industry Rank measures the strength of our industry groups by measuring the average Zacks Rank of individual stocks within groups. Our research shows that the top 50% of industries top the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock market metrics and more on Zacks.com.