Latest news with #BRK.B
Yahoo
06-07-2025
- Business
- Yahoo
Berkshire Hathaway B (BRK.B) Stock Declines While Market Improves: Some Information for Investors
Berkshire Hathaway B (BRK.B) closed at $480.48 in the latest trading session, marking a -1.86% move from the prior day. The stock trailed the S&P 500, which registered a daily gain of 0.48%. On the other hand, the Dow registered a loss of 0.02%, and the technology-centric Nasdaq increased by 0.94%. The stock of company has fallen by 1.65% in the past month, lagging the Finance sector's gain of 3.5% and the S&P 500's gain of 5.13%. Investors will be eagerly watching for the performance of Berkshire Hathaway B in its upcoming earnings disclosure. The company's upcoming EPS is projected at $5.24, signifying a 2.60% drop compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $98.5 billion, indicating a 5.18% increase compared to the same quarter of the previous year. For the full year, the Zacks Consensus Estimates are projecting earnings of $20.53 per share and revenue of $403.3 billion, which would represent changes of -6.68% and +8.58%, respectively, from the prior year. Investors might also notice recent changes to analyst estimates for Berkshire Hathaway B. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the business outlook. Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model. 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 remained stagnant. Right now, Berkshire Hathaway B possesses a Zacks Rank of #3 (Hold). From a valuation perspective, Berkshire Hathaway B is currently exchanging hands at a Forward P/E ratio of 23.85. For comparison, its industry has an average Forward P/E of 12, which means Berkshire Hathaway B is trading at a premium to the group. Investors should also note that BRK.B has a PEG ratio of 3.41 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Insurance - Property and Casualty was holding an average PEG ratio of 2.73 at yesterday's closing price. The Insurance - Property and Casualty industry is part of the Finance sector. This group has a Zacks Industry Rank of 49, putting it in the top 20% of all 250+ industries. The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Keep in mind to rely on to watch all these stock-impacting metrics, and more, in the succeeding trading sessions. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Berkshire Hathaway Inc. (BRK.B) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
06-07-2025
- Business
- Yahoo
Should You Buy Berkshire Hathaway Stock, Even Though It's Down 10% Since Warren Buffett Announced Retiring as CEO?
Berkshire Hathaway has been underperforming the S&P 500 in recent months. The company's investment thesis is noticeably different today than in Berkshire's early days. Berkshire remains a balanced blue chip stock for long-term investors. 10 stocks we like better than Berkshire Hathaway › Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) stock is down big since Warren Buffett announced that he would be stepping down as chief executive officer (but remain chairman) by the end of the year. Here's why the sell-off is a buying opportunity for investors looking for an ultra-reliable blue chip stock to hold for years to come. Berkshire Hathaway stock was on a tear to start the year -- hitting an all-time high on May 2 -- the day before its annual shareholder meeting in Omaha. But between that meeting and June 30, Berkshire fell 10%, compared to a 9.1% gain in the S&P 500 (SNPINDEX: ^GSPC). That's a significant underperformance in a short period, to which Berkshire investors aren't accustomed. The stock has trounced the S&P 500 over the long term, with a 19.9% compounded annual gain between 1965 and 2024, compared to 10.4% for the index with dividends reinvested. Part of the reason Berkshire has been lagging the S&P 500 is changing investment sentiment. When tariff turmoil was rippling through markets, some investors gravitated toward companies with business models that could hold up well even if these tensions escalated. Berkshire is an ultra-safe stock to own regardless of the market cycle. This is because of its portfolio of controlled assets -- from its insurance businesses to ownership of the BNSF railroad, utility giant Berkshire Hathaway Energy, manufacturing assets, services and retailing businesses, and its positions in public companies like Apple, American Express, Coca-Cola, and more. But Berkshire has been extra cautious lately. In its first-quarter 2025 financial filings, Berkshire revealed a record $348 billion in cash, cash equivalents, and short-term Treasury bills. During the shareholder meeting, Buffett said that Berkshire was holding more Treasury bills than he would like, but stressed the importance of being patient and waiting for excellent investment opportunities. In this vein, Berkshire has become even more of a defensive stock, so it makes sense that investors gravitated toward it when volatility was spiking. The news that Buffett is stepping down as CEO, combined with investors looking for riskier, higher-potential-reward stocks and less defensive names, may explain why Berkshire has underperformed the S&P 500 by so much over the last two months. As a long-term investor, it's important to filter out the noise of market movements and understand that stock prices can do all sorts of things in the near term that have little to do with a long-term investment thesis. Earlier this year, Berkshire's stock price was driven by some investors rotating out of mega-cap growth stocks and into value stocks. But now, the opposite is happening, as some value stocks like Berkshire are selling off or underperforming the S&P 500 while mega-cap growth stocks like Nvidia and Microsoft are hitting all-time highs. It's not that Nvidia's and Microsoft's business models have changed between now and a few months ago. Rather, investors are willing to pay a premium price for future earnings growth, because the risk of tariffs slowing that growth has gone down considerably. Instead of focusing on which stocks are in and out of favor, a better approach is to identify excellent businesses and then decide if the price is reasonable. Buffett's preferred way to value Berkshire is by its operating earnings, which reflect how the businesses it owns are performing, rather than accounting for changes in market values. Berkshire's operating earnings have compounded over time as it has grown its controlled businesses and made savvy acquisitions. Insurance underwriting and investment income have been massive drivers of operating earnings. Underwriting earnings grow as premiums collected outpace claims paid, and investment income represents the return Berkshire gets on the sum of premiums collected that haven't been paid out in claims. Given the size and operational excellence of Berkshire's insurance businesses, paired with its other controlled businesses, the company has a clear path toward steadily growing operating earnings over time. As mentioned, Berkshire also has a massive cash position that it can use to make a strategic acquisition, accelerate growth in a controlled business, or buy shares in stocks at compelling prices. Another reason to buy and hold Berkshire is the potential for the company to pay dividends under its new CEO, Greg Abel. Buffett has long been against the idea of paying dividends, because he believes that Berkshire can earn a better return for shareholders by reinvesting profits rather than passing them along through dividends. And he's been right, given the long-term performance of Berkshire stock. But if Berkshire continues to hold a ton of cash and not buy back stock, it could make sense for the company to pay a dividend. When Berkshire was a smaller company, Buffett was able to flex his investing prowess and creativity to have a meaningful effect on the business through moves like acquiring Geico and buying Coca-Cola and American Express at dirt cheap prices. But today, Berkshire is so big that buying hidden-gem, undervalued companies wouldn't affect its stock performance. So Berkshire's big buys over the last 10 years have been opportunities hiding in plain sight -- like Apple. And with Buffett passing the torch to Abel, investors should focus more on Berkshire's operational advantages, rather than treating the company like a stock-picking hedge fund. All told, Berkshire is a great buy if you like the assets it owns, its cash position, and its competitive advantages. Before you buy stock in Berkshire Hathaway, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Berkshire Hathaway wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $699,558!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $976,677!* Now, it's worth noting Stock Advisor's total average return is 1,060% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 30, 2025 American Express is an advertising partner of Motley Fool Money. Daniel Foelber has positions in Nvidia. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, Microsoft, and Nvidia. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. Should You Buy Berkshire Hathaway Stock, Even Though It's Down 10% Since Warren Buffett Announced Retiring as CEO? was originally published by The Motley Fool Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Globe and Mail
02-07-2025
- Business
- Globe and Mail
Can Berkshire Hathaway's Manufacturing Subsidiary Power its Growth?
Berkshire Hathaway 's ( BRK.B ) manufacturing operations are a vital pillar of its long-term growth strategy, contributing significantly to revenues, earnings stability and diversification. Spanning industrial, building, and consumer products, these businesses operate in cyclical yet essential sectors, providing dependable cash flows that help offset fluctuations in financial markets and insurance results. These autonomous manufacturing subsidiaries foster long-term planning, innovation, and disciplined capital allocation. Many of these firms are industry leaders with strong competitive advantages, such as efficient production, specialized technologies and long-standing customer relationships. Their consistent earnings boost Berkshire's overall profitability and help sustain its large capital base, which fuels investments across other segments, including insurance and public equities. Notably, the manufacturing segment contributed 20% of BRK.B's total revenues in the first quarter of 2025. This segment aligns with Warren Buffett's strategy of acquiring businesses with durable fundamentals and predictable earnings. A prime example is Precision Castparts, which, despite temporary challenges in the aerospace sector, remains strategically important due to its presence in high-barrier, specification-driven markets. The strength and resilience of such assets enhance Berkshire's intrinsic value and act as a buffer during economic downturns. In essence, the manufacturing segment anchors Berkshire in the real economy. Through job creation, reinvestment in domestic production and long-term strategic acquisitions, it drives sustainable growth and positions the company to capitalize on broader economic and industrial trends. What About Competitors? 3M Company 's MMM business is being driven by strong performance in its Safety and Industrial segment, supported by demand for roofing granules, adhesives, and tapes. Additionally, the 3M Company benefits from its strength in the commercial aircraft and defense markets, with project wins boosting its Transportation and Electronics segment. 3M Company remains resilient. Honeywell International Inc.'s HON market leadership, broad portfolio and strong dealer network give it a competitive edge in aerospace and industrial markets. While Honeywell International is pursuing a value-driven transformation strategy, it faces headwinds from industrial automation softness, high debt and escalating expenses. BRK.B's Price Performance Shares of BRK.B have gained 6.7% year to date, underperforming the industry. BRK.B's Expensive Valuation BRK.B trades at a price-to-book value ratio of 1.61, above the industry average of 1.58. It carries a Value Score of D. No Estimate Movement for BRK.B The Zacks Consensus Estimate for BRK.B's second-quarter and third-quarter 2025 EPS witnessed no movement over the past 30 days. The consensus estimate for full-year 2025 and 2026 also witnessed no movement over the past 30 days. The consensus estimates for BRK.B's 2025 and 2026 revenues indicate a year-over-year increase. While the consensus estimate for BRK.B's 2025 EPS indicates a decline, the same for 2026 suggests an increase. BRK.B stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Zacks' Research Chief Names "Stock Most Likely to Double" Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest. This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%. Free: See Our Top Stock And 4 Runners Up Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Honeywell International Inc. (HON): Free Stock Analysis Report 3M Company (MMM): Free Stock Analysis Report Berkshire Hathaway Inc. (BRK.B): Free Stock Analysis Report
Globe and Mail
30-06-2025
- Business
- Globe and Mail
Can Berkshire Hathaway's Railroad Subsidiary Power its Growth?
Burlington Northern Santa Fe, LLC ('BNSF'), Berkshire Hathaway Inc.'s ( BRK.B ) flagship railroad subsidiary, is an important pillar of the conglomerate's widely diversified portfolio. It operates one of the largest railroad systems in North America, providing stable, inflation-protected cash flows and a competitive advantage in the North American freight rail industry. Berkshire Hathaway acquired BNSF in 2010 and has consistently contributed robust earnings, reflecting the essential nature of rail transport in the U.S. economy. Serving the Midwest, Pacific Northwest, Western, Southwestern and Southeastern regions and certain ports of the United States, BNSF Railway transports a range of products and commodities derived from manufacturing, agricultural and natural resource industries. This exposure supports revenue diversification and aligns BNSF's performance with broader economic trends. With its scale and pricing power, the railroad consistently delivers strong free cash flow, giving Berkshire Hathaway the flexibility to reinvest or preserve capital for future acquisitions. After-tax earnings of BNSF increased 6.2% in the first quarter of 2025 compared to 2024 from higher volumes and overall improved operating efficiencies, despite the negative impacts of severe weather in February 2025. BNSF's regulated infrastructure-like earnings support the conglomerate's financial resilience. BNSF, thus, is not just a transportation business but a long-term compounding engine for Berkshire Hathaway. Its strategic importance lies in its ability to deliver consistent earnings and support Berkshire Hathaway's capital allocation strategy, making it a vital pillar of a value creation model. What About Competitors? Headquartered in Omaha, NE, Union Pacific Corporation UNP, through its subsidiary, Union Pacific Railroad Company, operates in the railroad business in the United States. Relatively stable e-commerce demand and cost-cutting efforts continue to boost the bottom line. Headquartered in Atlanta, GA, Norfolk Southern Corporation NSC engages in the rail transportation of raw materials, intermediate products and finished goods in the United States. E-commerce demand is supporting Norfolk Southern's shipment volumes. The company utilizes the Precision Scheduled Railroading operating plan to reduce costs and enhance services for optimal asset utilization BRK.B's Price Performance Shares of BRK.B have gained 7.2% year to date, outperforming the industry. BRK.B's Expensive Valuation BRK.B trades at a price-to-book value ratio of 1.60, above the industry average of 1.57. But it carries a Value Score of D. No Estimates Movement for BRK.B The Zacks Consensus Estimate for BRK.B's second-quarter and third-quarter 2025 EPS witnessed no movement over the past 30 days. The consensus estimate for full-year 2025 and 2026 also witnessed no movement over the past 30 days. The consensus estimates for BRK.B's 2025 and 2026 revenues indicate a year-over-year increase. While the consensus estimate for BRK.B's 2025 EPS indicates a decline, the same for 2026 suggests an increase. BRK.B stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Zacks Names #1 Semiconductor Stock It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom. With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028. See This Stock Now for Free >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Union Pacific Corporation (UNP): Free Stock Analysis Report Norfolk Southern Corporation (NSC): Free Stock Analysis Report Berkshire Hathaway Inc. (BRK.B): Free Stock Analysis Report
Globe and Mail
27-06-2025
- Business
- Globe and Mail
Berkshire Stock Falls 8% in 3 Months: Should You Buy the Dip?
Shares of Berkshire Hathaway Inc. ( BRK.B ) have lost 7.8% in the past three months, underperforming the industry 's decline of 6.7%, the Finance sector's increase of 4.8% and the Zacks S&P 500 composite's increase of 9.1% in the said time frame. BRK.B is now trending below its 50-day simple moving average (SMA), indicating the possibility of a downside ahead. Berkshire Vs Industry, Sector, S&P 500 Shares of Chubb Limited CB and The Progressive Corporation PGR have lost 4.9% and 4.7% in the past three months, respectively. Chubb, a prominent global provider of property and casualty insurance and reinsurance, is strategically leveraging growth opportunities within the middle-market segment in both domestic and international arenas. The insurer is driving long-term expansion by strengthening its core package offerings and expanding its portfolio of specialty insurance products. In addition, Chubb continues to invest in key strategic initiatives that support its broader growth objectives and competitive positioning. Progressive, one of the largest auto insurance groups in the United States, is well-equipped to maintain profitability, supported by its strong market position, broad product suite, and superior underwriting and operational execution. Progressive has refined its strategy to emphasize bundled auto products, limit exposure to high-risk properties, and enhance segmentation through the introduction of innovative, targeted insurance solutions. BRK.B Shares Are Expensive The stock is overvalued compared with its industry. It is currently trading at a price-to-book multiple of 1.59, higher than the industry average of 1.55. Berkshire is relatively cheap compared to Progressive and Chubb. Average Target Price for BRK.B Suggests Upside Based on short-term price targets offered by four analysts, the Zacks average price target is $537.75 per share. The average suggests a potential 10.6% upside from the last closing price. What's Working in Favor of Berkshire Hathaway? Berkshire Hathaway's insurance operations form the core of its business model, accounting for roughly one-quarter of total revenues and serving as a key engine of long-term growth. With extensive market exposure, disciplined pricing and robust underwriting performance, the insurance segment is well-equipped to perform even under adverse market conditions. Complementing its insurance strength, Berkshire's diversified structure adds resilience to its overall operations. A major stabilizing force is Berkshire Hathaway Energy (BHE), the company's energy subsidiary, which focuses heavily on renewable energy. As a regulated utility, BHE generates stable and predictable cash flows that are largely insulated from economic cycles. Its strong financial foundation and long-term commitment to clean energy make it a growing pillar of Berkshire's future growth in a world rapidly shifting toward electrification and sustainability. The Utilities and Energy segment is further supported by Burlington Northern Santa Fe (BNSF) though it faces challenges such as a less favorable business mix and declining fuel surcharge income. Still, rising demand for utility services is expected to bolster future performance in this segment. Berkshire's Manufacturing, Service, and Retail divisions also stand to gain from an improving economic climate, with heightened consumer activity fueling revenue expansion and margin growth. Meanwhile, continued growth in the insurance segment has driven the expansion of Berkshire's insurance float—the pool of premiums held before claims are paid—from approximately $114 billion at the end of 2017 to $173 billion as of first-quarter 2025. This float serves as a low-cost source of capital, which Berkshire has skillfully deployed into high-quality businesses and investments with durable earnings and strong returns, including major stakes in Apple, Coca-Cola, BNSF Railway and various utilities. The company's strong financial position also supports consistent share repurchases—an effective capital allocation strategy that enhances shareholder value over the long term. Berkshire Hathaway's Return on Capital Return on equity ('ROE') in the trailing 12 months was 7.2%, underperforming the industry average of 7.8%. Return on equity, a profitability measure, reflects how effectively a company is utilizing its shareholders' funds. It is noteworthy that though BRK.B's ROE is lagging the industry average, the company has been continuously generating improved ROE. Image Source: Zacks Investment Research The same holds true for return on invested capital (ROIC), which has increased every year since 2020. This reflects BRK.B's efficiency in utilizing funds to generate income. However, ROIC in the trailing 12 months was 5.7%, lower than the industry average of 6%. Muted Analyst Sentiment The Zacks Consensus Estimate for 2025 earnings implies a 6.7% year-over-year decrease, while the same for 2026 suggests a 5% increase. The expected long-term earnings growth is pegged at 7%, better than the industry average of 6.8%. The consensus estimate for 2025 and 2026 earnings witnessed no movement in the past 30 days. Parting Thoughts on BRK.B Shares Berkshire Hathaway is a conglomerate with more than 90 subsidiaries engaged in diverse business activities. Thus, holding shares of Berkshire Hathaway renders dynamism to shareholders' portfolios. BRK.B has delivered significant value to shareholders for almost six decades under the leadership of Buffett. The focus will now shift to how the behemoth performs when Greg Abel succeeds Warren Buffett as CEO of Berkshire, effective Jan. 1, 2026. Warren Buffett will continue to be the company's executive chairman. Given Berkshire Hathaway's premium valuation, unfavorable return on capital and muted analyst sentiments surrounding the company, it is better to adopt a wait-and-see approach for this Zacks Rank #3 (Hold) stock. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Zacks' Research Chief Picks Stock Most Likely to "At Least Double" Our experts have revealed their Top 5 recommendations with money-doubling potential – and Director of Research Sheraz Mian believes one is superior to the others. Of course, all our picks aren't winners but this one could far surpass earlier recommendations like Hims & Hers Health, which shot up +209%. See Our Top Stock to Double (Plus 4 Runners Up) >> Chubb Limited (CB): Free Stock Analysis Report Berkshire Hathaway Inc. (BRK.B): Free Stock Analysis Report The Progressive Corporation (PGR): Free Stock Analysis Report
