Berkshire Hathaway B (BRK.B – Free Report) closed the most recent trading day at $272.21, moving +1.61% from the previous trading session. This move outpaced the S&P 500’s daily gain of 0.93%.
Coming into today, shares of the company had gained 7.96% in the past month. In that same time, the Finance sector gained 0.82%, while the S&P 500 gained 5.84%.
BRK.B will be looking to display strength as it nears its next earnings release. In that report, analysts expect BRK.B to post earnings of $2.58 per share. This would mark year-over-year growth of 7.05%.
For the full year, our Zacks Consensus Estimates are projecting earnings of $10.67 per share and revenue of $279.2 billion, which would represent changes of +16.36% and +13.72%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for BRK.B. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating 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 #3 (Hold).
Digging into valuation, BRK.B currently has a Forward P/E ratio of 25.34. Its industry sports an average Forward P/E of 15.84, so we one might conclude that BRK.B is trading at a premium comparatively.
Meanwhile, BRK.B’s PEG ratio is currently 3.62. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company’s expected earnings growth rate into account. The Insurance – Property and Casualty industry currently had an average PEG ratio of 2.35 as of yesterday’s close.
The Insurance – Property and Casualty industry is part of the Finance sector. This group has a Zacks Industry Rank of 213, putting it in the bottom 17% of all 250+ industries.
The Zacks Industry Rank includes is listed in order 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.
You can find more information on all of these metrics, and much more, on Zacks.com.