Berkshire Hathaway B (BRK.B) Outpaces Stock Market Gains: What You Should Know

In the latest trading session, Berkshire Hathaway B (BRK.B) closed at $286.04, marking a +0.88% move from the previous day. This move outpaced the S&P 500's daily gain of 0.59%. Elsewhere, the Dow gained 0.15%, while the tech-heavy Nasdaq lost 0.02%.

Prior to today's trading, shares of the company had gained 4.33% over the past month. This has lagged the Finance sector's gain of 4.65% and the S&P 500's gain of 7.25% in that time.

Berkshire Hathaway B will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $3, up 2.04% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $72.97 billion, up 5.57% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $12.11 per share and revenue of $293.25 billion, which would represent changes of -0.08% and +6.22%, respectively, from the prior year.

Any recent changes to analyst estimates for Berkshire Hathaway B should also be noted by investors. 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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. Over the past month, the Zacks Consensus EPS estimate has moved 6% lower. Berkshire Hathaway B is currently a Zacks Rank #3 (Hold).

Valuation is also important, so investors should note that Berkshire Hathaway B has a Forward P/E ratio of 23.42 right now. This valuation marks a premium compared to its industry's average Forward P/E of 12.76.

It is also worth noting that BRK.B currently has a PEG ratio of 3.35. 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 1.77 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 130, putting it in the bottom 49% 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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