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

Berkshire Hathaway Inc. (BRK.B) closed at $206.36 in the latest trading session, marking a +0.19% move from the prior day. This change lagged the S&P 500's 0.86% gain on the day. Elsewhere, the Dow lost 0.06%, while the tech-heavy Nasdaq added 1.37%.

Prior to today's trading, shares of the company had gained 1.56% over the past month. This has lagged the Finance sector's gain of 9.7% and the S&P 500's gain of 8.11% in that time.

Investors will be hoping for strength from BRK.B as it approaches its next earnings release, which is expected to be February 22, 2019. The company is expected to report EPS of $2.23, up 65.19% from the prior-year quarter.

It is also important to note the recent changes to analyst estimates for BRK.B. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 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. Over the past month, the Zacks Consensus EPS estimate has moved 1.56% higher. BRK.B currently has a Zacks Rank of #1 (Strong Buy).

Digging into valuation, BRK.B currently has a Forward P/E ratio of 19.78. For comparison, its industry has an average Forward P/E of 12.46, which means BRK.B is trading at a premium to the group.

Meanwhile, BRK.B's PEG ratio is currently 2.83. 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 1.11 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 79, which puts it in the top 31% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

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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