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Berkshire Hathaway Inc. (BRK.B), with a market cap of $878 billion, led by iconic CEO Warren Buffett, is a multinational conglomerate known for its diverse portfolio of businesses, including insurance, transportation, and utility. Based in Omaha, Nebraska, it is renowned for its long-term investment strategy and Buffett's astute leadership, making it a cornerstone of the global financial landscape.
Shares of Berkshire Hathaway have slightly underperformed the broader market over the past 52 weeks. BRK.B has gained 27.2% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 28.9%. However, in 2024, shares of BRK.B are up 14.2%, surpassing SPX's 11.2% gains on a YTD basis.
Zooming in further, BRK.B has also lagged behind the US Financial Services Ishares ETF's (IYG) 33.4% gains over the past 52 weeks. But the stock's YTD gains outpace the exchange-traded fund's 10.4% returns for the same period.
Berkshire Hathaway's underperformance over the past year is due to its heavy reliance on slow-growth sectors like insurance and utilities, coupled with missed opportunities in high-growth areas due to its conservative investment approach. However, the stock surged after the company reported robust Q1 results on May 4, featuring a record $11.2 billion operating profit driven by strong insurance earnings.
For the current fiscal year, ending in December, analysts expect BRK.B's EPS to grow by 8.9% to $18.70. The company's earnings surprise history is mixed. It beat the consensus forecast in three of the past four quarters while missing on one other occasion.
Among the three analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on one “Strong Buy” rating and two “Holds.”
This configuration has been consistent over the past months.
The mean price target of $490 suggests a 20.3% premium over BRK.B's current levels.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
