Berkshire Hathaway Inc. (BRK.B), headquartered in Omaha, Nebraska, is a holding company that owns subsidiaries in various business sectors, including insurance, freight, rail, transportation, and utilities. With a market cap of $1 trillion, Berkshire's other operations include a railway company, a specialty chemical company, and an international association of diversified businesses.
Shares of this company have underperformed the broader market over the past year. BRK.B has declined 8.3% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 31.4%. In 2026, BRK.B stock is down 6.5%, compared to the SPX’s 7.6% rise on a YTD basis.
Narrowing the focus, BRK.B’s underperformance is also apparent compared to iShares U.S. Financial Services ETF (IYG). The exchange-traded fund has gained about 12.1% over the past year. Moreover, the ETF’s 4.8% dip on a YTD basis outshines the stock’s losses over the same time frame.
BRK.B underperformed due to investor concerns over the leadership transition from Warren Buffett to Greg Abel, which reduced the historical “Buffett premium” on valuation, while GEICO faced margin pressure from rising bodily injury claims and higher customer acquisition costs, and Berkshire’s value-oriented portfolio with limited tech/AI exposure and large cash reserves lagged the broader market’s growth-led rally.
On May 2, BRK.B reported its Q1 results, and its shares closed down by 1% in the following trading session. Its total revenues stood at $93.7 billion, up 4.4% year over year. The company’s EPS increased 119.7% from the year-ago quarter to $4.68.
For the current fiscal year, ending in December, analysts expect BRK.B’s EPS to decline 1.8% to $20.25 on a diluted basis. The company’s earnings surprise history is mixed. It beat the consensus estimate in two of the last four quarters while missing the forecast on two other occasions.
Among the six analysts covering BRK.B stock, the consensus is a “Hold.” That’s based on two “Strong Buy” ratings, three “Holds,” and one “Strong Sell.”
This configuration is less bullish than a month ago, with a “Moderate Buy” rating overall.
On May 6, Edmond Fok from DBS maintained a “Hold” rating on BRK.B, with a price target of $500, implying a potential upside of 6.4% from current levels.
The mean price target of $521.50 represents an 11% premium to BRK.B’s current price levels. The Street-high price target of $570 suggests a notable upside potential of 21.3%.
On the date of publication, Neha Panjwani 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.
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