Buy Berkshire Hathaway B (BRK.B) today. Here's why:
- Recent Performance: BRK.B has returned +5.3% over the past month, outpacing the Zacks S&P 500 composite's +2% change and the Insurance - Property and Casualty industry's 4.8% gain1. This indicates strong relative performance.
- Earnings Estimates: The Zacks Consensus Estimate for BRK.B's current quarter earnings is $5.10 per share, reflecting a positive change of +10.4% from the year-ago quarter1. Additionally, the consensus earnings estimate for the current fiscal year is $18.78, with a year-over-year change of +9.3%1.
- Revenue Growth: The consensus sales estimate for the current quarter indicates a year-over-year change of +5.2%, and the estimates for the current and next fiscal years show changes of +1.1% and +1.6%, respectively1. This suggests steady revenue growth.
- Analyst Ratings: The stock has a Zacks Rank of #3 (Hold), which is based on earnings estimate revisions and has a strong correlation with short-term stock price movements1. The average brokerage recommendation (ABR) is 2.00, indicating a "Buy" recommendation23.
- Valuation: With a forward P/E ratio of 23.37, BRK.B trades at a premium compared to the industry average4. However, the PEG ratio of 3.34 suggests that the growth expectations are factored into the valuation4.
- Market Position: As a leading player in the Insurance - Property and Casualty industry, BRK.B holds a strong market position4. The industry has a Zacks Industry Rank of 65, indicating it is in the top 26% of all industries, which can be a positive sign for the stock's performance4.
In conclusion, BRK.B's strong earnings growth, positive analyst ratings, and solid market position make it a compelling buy. The stock's recent performance and the upcoming earnings release are positive indicators for investors. However, it's important to consider your investment strategy and risk tolerance before making any decisions.