Berkshire Hathaway B Outlook - Technical Weakness and Mixed Signals Amid Mixed Fundamentals

Market Snapshot

Berkshire Hathaway B (BRK.B) is currently in a weak technical position with a score of 3.35 (internal diagnostic score, 0-10), suggesting caution for potential buyers. Despite this, the stock’s fundamentals score is 4.8 (internal diagnostic score), reflecting mixed signals with some positive cash flow metrics but underwhelming earnings growth.

News Highlights

• Reliable Data Services Reports Strong Sales Growth – Though unrelated to BRK.B, this highlights industry concerns around profitability amid rising costs, which could indirectly affect broader market sentiment toward value stocks like Berkshire.
• REX Shares Files for Ethereum and Solana ETFs – This development underlines the shifting regulatory landscape for crypto, which could influence capital flows and investor sentiment, though not directly tied to BRK.B, it reflects broader risk-on/risk-off dynamics.
• China’s Factory Activity Contracts Slightly – While a modest improvement in May PMI was recorded, the data reinforces global economic uncertainty. As a diversified holding company, Berkshire is exposed to macroeconomic risks, especially in its insurance and manufacturing segments.

Analyst Views & Fundamentals

Analysts remain cautiously optimistic with a simple average rating of 5.00 and a performance-weighted rating of 4.86. However, the stock has declined by -1.84% recently, indicating a mismatch between bullish analyst ratings and current price action. The single active analyst, Brian Meredith from UBS, has issued two recent "Strong Buy" ratings in the last 20 days, but UBS has a historical win rate of 50% with an average return of 1.42% on those calls.

Key fundamental factors include:

• Days Sales Outstanding (DSO): 117.93 – This metric has an internal diagnostic score of 2, indicating a moderate risk of liquidity pressure if not managed well.
• Net Cash Flow from Operating Activities (YoY %): -13.16% – Despite a decline, this factor has a high score of 4.8, suggesting the company remains operationally resilient.
• Basic Earnings Per Share (YoY %): -60.58% – With an internal score of 1, this is a red flag for earnings momentum.
• Net Profit Margin: -3,793.28% – This anomaly (likely due to unusual accounting items) scored 0, signaling a major concern.
• Fixed Assets Turnover Ratio: 1,145.70 – With an internal score of 2, this indicates inefficiencies in asset utilization.

Money-Flow Trends

Large institutional flows remain negative, with block trend and extra-large trend showing a bias downward. However, retail investors (small-sized inflows) are showing a positive trend, with an inflow ratio of 54.48%. Overall, the stock has a fund flow score of 7.78 (internal diagnostic score), suggesting strong retail support but caution from big money. The overall inflow ratio stands at 47.41%, showing a moderate level of overall interest.

Key Technical Signals

Technical indicators for BRK.B are currently bearish, with 4 bearish signals versus only 1 bullish. The MACD Death Cross stands out with an internal diagnostic score of 8.17, signaling a strong bullish potential, but this is outweighed by the RSI Overbought and WR Overbought indicators, which scored 1 and 2.15, respectively. Both suggest overbought conditions and a likely pullback.

Recent chart patterns include:

• Marubozu White on 2025-08-29 – a strong bullish candle pattern, but it had an average return of -0.06%, suggesting limited success historically.
• WR Oversold and MACD Death Cross on 2025-09-10 – both historically have shown mixed performance.

Overall, the technical trend is weak, and the key insight is that the market is in a volatile state with unclear direction.

Conclusion

Berkshire Hathaway B is in a precarious technical position with a weak score of 3.35 (internal diagnostic score), but fundamentals and fund flows suggest a mixed bag of caution and retail optimism. Investors should consider waiting for a pull-back before initiating new positions, especially given the bearish technical signals and the mismatch between analyst optimism and price action. Those already in the stock might want to monitor upcoming earnings and any major macroeconomic shifts in global markets.