Why Is Berkshire Hathaway B (BRK.B) Down 6.6% Since Last Earnings Report?

Berkshire Hathaway B (BRK.B) shares have declined 6.6% in the past month, underperforming the S&P 500, despite upward trending fresh estimates. The stock has a Zacks Rank #3 (Hold), suggesting an expected in-line return in the near term, with subpar Growth and Value scores but a better Momentum score. Selective Insurance (SIGI), a peer in the same industry, has gained 0.4% over the same period, reporting a 10.2% increase in revenues and EPS of $1.76 in its most recent quarter.

Analysis

Berkshire Hathaway B (BRK.B) shares have declined 6.6% over the past month, underperforming the S&P 500, despite fresh analyst estimates for the company trending upward during this period. The stock's fundamental metrics present a mixed picture: it holds a subpar Growth Score of D and a Value Score of D, placing it in the bottom 40% for value strategies, although its Momentum Score is a more favorable B. Cumulatively, BRK.B has an aggregate VGM Score of D and carries a Zacks Rank #3 (Hold), suggesting expectations for an in-line market return in the coming months. However, the outlook includes a nuanced warning: while estimates are trending upward, the "magnitude of this revision indicates a downward shift." In contrast, Selective Insurance (SIGI), an industry peer in the Zacks Insurance - Property and Casualty sector, has seen its shares gain 0.4% over the past month. SIGI reported revenues of $1.29 billion for its quarter ended March 2025, a 10.2% year-over-year increase, with EPS rising to $1.76 from $1.33 a year ago. For the current quarter, SIGI's EPS is forecast at $1.59, representing a 244.6% year-over-year increase, though its Zacks Consensus Estimate has seen a slight -1.4% downward revision in the last 30 days. SIGI also holds a Zacks Rank #3 (Hold) but is distinguished by a strong VGM Score of A.

Key Decisions for Investors

• Investors should approach Berkshire Hathaway B with caution considering its recent 6.6% share price decline and market underperformance, carefully weighing the positive trend in fresh estimates against its weak Growth (D) and Value (D) scores and the potentially concerning 'downward shift' signaled by the magnitude of estimate revisions.
• Given BRK.B's Zacks Rank #3 (Hold) and mixed signals, monitoring upcoming earnings releases and any further clarifications or changes in analyst estimates is crucial to assess whether the recent negative price trend will continue or if a recovery is likely.
• The contrasting positive share performance, robust financial results including 10.2% year-over-year revenue growth, and superior VGM Score (A) of industry peer Selective Insurance (SIGI), despite also holding a Zacks Rank #3, may present a case for comparative analysis or offer a potential alternative for investors seeking exposure to the Property and Casualty insurance sector.