Berkshire Hathaway closed down 0.89% to $396.92 on Tuesday.
The Zhitong Finance App learned that Berkshire Hathaway (BRK.B.US) closed down 0.89% to $396.92 on Tuesday. According to information, the stock has been falling for the 7th consecutive trading day. In the past six trading days, the stock's market value fell 4.47%, and its performance was lower than the broader Financial Select Sector SPDR Fund ETF, which fell 4.17% during the same period.
Despite the stock falling for 7 consecutive trading days, market analysts remain optimistic about the stock. Among them, Steven Fiorillo, author of Seeking Alpha, said in a report that Warren Buffett hopes Berkshire Hathaway's market capitalization will reach 1 trillion US dollars because the company's stock price is close to an all-time high, with a market value close to 900 billion US dollars. Fiorillo sees this as the best end to Warren Buffett's illustrious career and expects the stock price to continue to rise as they still seem undervalued.
Additionally, SA contributor Karlsson & Partners notes that the company's current valuation looks fair from a long-term perspective, but the stock price is likely to experience an adjustment in 2024, and the analyst gave Berkshire Hathaway a “hold” rating.
Meanwhile, the quantitative rating system rated Berkshire Hathaway as a “strong buy” with a rating of 4.96 (out of 5). The rating system takes into account factors such as growth, profitability, momentum, and revisions.
It is worth mentioning that the stock has a place in Goldman Sachs's list of the 10 largest S&P 500 companies. Sales in the first quarter are expected to increase 15% year over year, and earnings per share will increase 32%.
The financial giant is expected to release its first-quarter earnings report on May 3. Despite the recent downturn in stock prices, Berkshire Hathaway's Q1 earnings per share are still expected to increase 26.03% year over year to $4.65, while revenue falls 6.30% year over year to US$80.1 billion.
Benefiting from improved insurance coverage and investment income, Berkshire Hathaway's fourth-quarter operating profit increased 28% year over year, which far offset the decline in rail, utilities and energy, and other businesses.