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During the last trading session, Berkshire Hathaway Inc. (BRK.B – Free Report) closed at $ 221.33, up 1.29% from yesterday. This change was lower than the 2.12% gain recorded by the S & P 500 that day. Elsewhere, the Dow Jones gained 2.13%, while the Nasdaq, highly technology-driven, added 2.64%.
Today, the company's shares lost 2.35% last month. At the same time, the financial sector lost 2.62%, while the S & P 500 lost 4.4%.
Investors are hopeful that BRK.B will strengthen in the run-up to the publication of its results, which is expected to take place on February 22, 2019. The company is expected to generate EPS of US $ 2.43, up 80% from last year. in the same quarter of the previous year.
For the full year, our consensus estimates of Zacks expect earnings per share of $ 9.97 and revenue of $ 262 billion, which would represent + 70.14% and + 8.2% changes. % compared to the previous year.
It is also important to note recent changes in analysts' estimates for BRK.B. These revisions help to show the ever-changing nature of short-term business trends. Thus, positive estimates revisions reflect analysts' optimism about the company's operations and profitability.
Our research shows that these estimation changes are directly related to short-term share prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes into account these estimation changes and provides a clear and usable evaluation template.
Ranging from # 1 (strong buy) to # 5 (solid sale), Zacks' ranking system has proven itself outside the outperformance audit, with # 1 stock returning on average + 25% per year since 1988. In recent years months, the estimate of Zacks Consensus EPS has increased by 1.87%. BRK.B is currently a rank of Zacks # 1 (strong buy).
In terms of valuation, BRK.B is currently trading at a Forward P / E ratio of 21.92. Its industry has an average average P / E of 15%, which allows us to conclude that BRK.B is trading at a premium.
Investors should also note that BRK.B's PEG ratio is currently 3.13. This measure is used in the same way as the famous P / E ratio, but the PEG ratio also takes into account the expected growth rate of the security. The BRK.B industry posted an average PEG ratio of 1.27 at the close of yesterday.
The Assurances – Assurances IARD sector is part of the Finance sector. Currently, this industry is ranked 186 in the Zacks category, placing it in the bottom 28% of 250+ industries.
The Zacks industry ranking is ranked in ascending order of ranking in the Zacks average ranking of individual companies in each of these sectors. Our research shows that the 50% of the top rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all these steps, and much more, on Zacks.com.
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