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Berkshire Hathaway Inc. (BRK.B) Flat As Market Gains: What You Should Know

Berkshire Hathaway Inc. (BRK.B) closed the most recent trading day at $201.02, making no change from the previous trading session. This change lagged the S&P 500's 0.85% gain on the day. Meanwhile, the Dow gained 0.75%, and the Nasdaq, a tech-heavy index, added 1.29%.

Prior to today's trading, shares of the company had gained 0.45% over the past month. This has lagged the Finance sector's gain of 13.17% and the S&P 500's gain of 12.44% in that time.

BRK.B will be looking to display strength as it nears its next earnings release, which is expected to be February 22, 2019. In that report, analysts expect BRK.B to post earnings of $2.23 per share. This would mark year-over-year growth of 65.19%.

Investors should also note any recent changes to analyst estimates for BRK.B. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.56% higher. BRK.B is currently a Zacks Rank #2 (Buy).

In terms of valuation, BRK.B is currently trading at a Forward P/E ratio of 19.31. This represents a premium compared to its industry's average Forward P/E of 12.06.

We can also see that BRK.B currently has a PEG ratio of 2.76. 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. BRK.B's industry had an average PEG ratio of 1.1 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 75, putting it in the top 30% 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.

To follow BRK.B in the coming trading sessions, be sure to utilize Zacks.com.


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