Here is What to Know Beyond Why Berkshire Hathaway Inc. (BRK.B) is a Trending Stock (2024)

Berkshire Hathaway B (BRK.B - Free Report) has been one of the most searched-for stocks on lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.

Shares of this company have returned +1.8% over the past month versus the Zacks S&P 500 composite's +3.2% change. The Zacks Insurance - Property and Casualty industry, to which Berkshire Hathaway B belongs, has gained 0.5% over this period. Now the key question is: Where could the stock be headed in the near term?

Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.

Earnings Estimate Revisions

Rather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.

Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.

Berkshire Hathaway B is expected to post earnings of $5.10 per share for the current quarter, representing a year-over-year change of +10.4%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.

For the current fiscal year, the consensus earnings estimate of $18.71 points to a change of +8.9% from the prior year. Over the last 30 days, this estimate has remained unchanged.

For the next fiscal year, the consensus earnings estimate of $19.61 indicates a change of +4.8% from what Berkshire Hathaway B is expected to report a year ago. Over the past month, the estimate has changed -1.3%.

With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Berkshire Hathaway B.

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Here is What to Know Beyond Why Berkshire Hathaway Inc. (BRK.B) is a Trending Stock (1)

Revenue Growth Forecast

Even though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.

In the case of Berkshire Hathaway B, the consensus sales estimate of $97.31 billion for the current quarter points to a year-over-year change of +5.2%. The $368.44 billion and $374.39 billion estimates for the current and next fiscal years indicate changes of +1.1% and +1.6%, respectively.

Last Reported Results and Surprise History

Berkshire Hathaway B reported revenues of $89.87 billion in the last reported quarter, representing a year-over-year change of +5.2%. EPS of $5.19 for the same period compares with $3.69 a year ago.

Compared to the Zacks Consensus Estimate of $81.03 billion, the reported revenues represent a surprise of +10.91%. The EPS surprise was +52.2%.

Over the last four quarters, Berkshire Hathaway B surpassed consensus EPS estimates three times. The company topped consensus revenue estimates each time over this period.


Without considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.

While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S) and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.

The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an An is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

Berkshire Hathaway B is graded C on this front, indicating that it is trading at par with its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

Bottom Line

The facts discussed here and much other information on might help determine whether or not it's worthwhile paying attention to the market buzz about Berkshire Hathaway B. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.

Here is What to Know Beyond Why Berkshire Hathaway Inc. (BRK.B) is a Trending Stock (2024)


Is Berkshire Hathaway B stock a good buy right now? ›

The highest analyst price target is $490.00 ,the lowest forecast is $450.00. The average price target represents 14.53% Increase from the current price of $410.97. Berkshire Hathaway B's analyst rating consensus is a Strong Buy.

What is the long term outlook for BRK B stock? ›

Berkshire Hathaway stock price stood at $408.21

According to the latest long-term forecast, Berkshire Hathaway price will hit $450 by the middle of 2025 and then $500 by the middle of 2026. Berkshire Hathaway will rise to $600 within the year of 2028, $700 in 2029, $800 in 2030, $900 in 2033 and $1000 in 2035.

Why buy BRK A instead of BRK B? ›

If you already own BRK. A shares you can still hold the shares and sell them as normal. Aside from the price, the main difference between Berkshire Hathaway Class A shares and Class B shares is that Class A shares can never be split, while Class B shares can.

What is the target price for BRK B stock? ›

Stock Price Target BRK.B
Current Price$416.94

What is the price target for BRK B in 2024? ›

Yearly Numbers

Is now a good time to invest in Berkshire Hathaway? ›

With its 4-star rating, we believe Berkshire Hathaway's stock is undervalued compared with our long-term fair value estimate of $427 per Class B share, which is equivalent to 1.45 times our estimate of the firm's book value per share at the end of 2024 and 1.35 times for 2025.

What will happen to BRK if Buffett dies? ›

Greg Abel, who runs Berkshire Hathaway's (NYSE:BRK) non-insurance business operations, is set to succeed Buffett as CEO when Buffett passes. While some investors in Berkshire fear that the stock will sell off on that day, Buffett has a contrarian view.

What will the BRK B share price be in 2025? ›

473.10 (15.50%)

Estimated share price by June 12, 2025.

What is the fair value of BRKB stock? ›

As of 2024-06-28, the Fair Value of Berkshire Hathaway Inc (BRK.B) is 853.17 USD.

Does BRK B outperform the S&P 500? ›

The conglomerate's portfolio has substantially outperformed the benchmark S&P 500 since Buffett became CEO in 1965.

Will brk b split again? ›

Presently, with Berkshire's Class B stock trading at $357 per share, the level of affordability seems reasonably manageable, meaning investors should not anticipate a stock split from Berkshire in the near future.

How many shares of BRK B does Warren Buffett own? ›

Warren Buffett is the largest holder of Berkshire Hathaway (NYSE: BRK. A)(NYSE: BRK.B) stock. He owns around 227,416 shares of Class A stock, and 276 shares of Class B stock. These stakes combine for a value of roughly $136 billion, representing a 31.6% voting interest in the company.

Is BRK B worth investing? ›

The financial health and growth prospects of BRK. B, demonstrate its potential to perform inline with the market. It currently has a Growth Score of C. Recent price changes and earnings estimate revisions indicate this would be a good stock for momentum investors with a Momentum Score of B.

How high will Berkshire Hathaway B go? ›

According to analysts, Berkshire Hathaway B-shares could rise as high as $417.50 per share while A-shares could climb to $685,438 per share. On a long-term basis, Berkshire's future value will ultimately be determined by its ability to productively invest its massive cash reserves.

Why is BRK B so expensive? ›

There are lots of factors that can contribute to a high stock price. One of the biggest reasons why BRK. A is so expensive is because CEO Warren Buffett has decided against a stock split. A stock split is when a company splits its existing stock to create more shares, often resulting in a lower share price.

Is it safe to buy Berkshire Hathaway stock? ›

Key Points. Berkshire Hathaway outperformed the S&P 500 index over the past several decades. It provides instant diversification and still trades at a reasonable valuation. It has plenty of cash to spend on fresh investments in the event of a market downturn.

What stocks are a strong buy right now? ›

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Company (ticker)Analysts' consensus recommendation scoreAnalysts' consensus recommendation
Boston Scientific (BSX)1.47Strong Buy
Micron Technologies (MU)1.47Strong Buy
S&P Global (SPGI)1.48Strong Buy
Targa Resources (TRGP)1.50Strong Buy
19 more rows

What is the target price for RBRK? ›

Based on short-term price targets offered by 14 analysts, the average price target for Rubrik, Inc. comes to $45.79. The forecasts range from a low of $40.00 to a high of $50.00. The average price target represents an increase of 54.07% from the last closing price of $29.72.

What is Warren Buffett buying now? ›

The Berkshire Hathaway portfolio — that is, Warren Buffett's stock picks — is a matter of public record. Warren Buffett's stock purchases in the most recent quarter include Chubb Limited (CB) and Occidental Petroleum (OXY). HP Inc.

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