Berkshire Hathaway Inc (BRK.A): Insurance's Featured Underachiever Of The Day
Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model .
Berkshire Hathaway ( BRK.A) pushed the Insurance industry lower today making it today's featured Insurance laggard. The industry as a whole closed the day down 1.5%. By the end of trading, Berkshire Hathaway fell $3300 (-2%) to $157700 on average volume. Throughout the day, 453 shares of Berkshire Hathaway exchanged hands as compared to its average daily volume of 500 shares. The stock ranged in price between $156554-$159650.01 after having opened the day at $159600 as compared to the previous trading day's close of $161000. Other companies within the Insurance industry that declined today were: MGIC Investment Corporation ( MTG), down 5.7%, Donegal Group ( DGICB), down 5.6%, Independence Holding Company ( IHC), down 4.7%, and Radian Group ( RDN), down 4.6%.
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Berkshire Hathaway, Inc. is a publicly owned investment manager. Through its subsidiaries, the firm primarily engages in the insurance and reinsurance of property and casualty risks business. Berkshire Hathaway was founded in 1889 and is based in Omaha, Nebraska. Berkshire Hathaway has a market cap of $140.15 billion and is part of the financial sector. The company has a P/E ratio of 17.5, below the S&P 500 P/E ratio of 17.7. Shares are up 20.1% year to date as of the close of trading on Tuesday.
TheStreet Ratings rates Berkshire Hathaway as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth, good cash flow from operations, solid stock price performance and notable return on equity. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.
- You can view the full Berkshire Hathaway Ratings Report .
On the positive front, American Independence Corporation ( AMIC), up 5.1% and eHealth ( EHTH), up 2.3%, were all gainers within the insurance industry with PartnerRe ( PRE) being today's featured insurance industry leader.
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For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the insurance industry could consider KBW Insurance ETF ( KIE) while those bearish on the insurance industry could consider Proshares Short Financials ( SEF).