Berkshire Hathaway B (BRK.B) Gains But Lags Market: What You Should Know

Zacks Equity Research
·3-min read

Berkshire Hathaway B (BRK.B) closed at $233.01 in the latest trading session, marking a +0.04% move from the prior day. This move lagged the S&P 500's daily gain of 0.36%. Elsewhere, the Dow lost 0.12%, while the tech-heavy Nasdaq added 0.69%.

Heading into today, shares of the company had gained 2.82% over the past month, lagging the Finance sector's gain of 5.32% and the S&P 500's gain of 4.27% in that time.

Investors will be hoping for strength from BRK.B as it approaches its next earnings release. The company is expected to report EPS of $2.34, up 29.28% from the prior-year quarter.

Investors might also notice recent changes to analyst estimates for BRK.B. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. BRK.B currently has a Zacks Rank of #4 (Sell).

Looking at its valuation, BRK.B is holding a Forward P/E ratio of 21.49. This represents a premium compared to its industry's average Forward P/E of 13.37.

We can also see that BRK.B currently has a PEG ratio of 3.07. 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. The Insurance - Property and Casualty industry currently had an average PEG ratio of 2.04 as of yesterday's close.

The Insurance - Property and Casualty industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 216, which puts it in the bottom 16% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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