To paraphrase a classic TV commercial, when Warren Buffett speaks, people listen. And it often pays off handsomely. On Tuesday, the Relative Strength Rating for Berkshire Hathaway climbed to 72, up from 66 a day earlier. Berkshire stock closed higher for the seventh time in a row.
A 72 RS Rating indicates Berkshire stock has topped 72% of all stocks on price appreciation over the past year. Stocks that go on to make the biggest gains often have an RS Rating over 80 as they launch their biggest climbs. See if Berkshire Hathaway can continue to show renewed price strength and hit that benchmark.
Can Berkshire Stock Continue Long Run Higher?
Berkshire stock dropped to 159.50 in late March 2020 as the Covid crash took its toll. It's risen about 92% from there to a 306.65 close Tuesday.
In March, led by the "sage of Omaha," Buffett's Berkshire agreed to buy specialty insurer Alleghany in a stock transaction valued at $11.6 billion. The move will expand Berkshire's portfolio of insurance, transportation, energy, manufacturing, finance and other businesses.
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Among its other key ratings, Berkshire stock has a 74 Composite Rating, an outstanding 88 EPS Rating and C+ Accumulation/Distribution Rating. The C+ rating means more big money investors such as mutual funds and insurance funds are buying its shares than selling.
Berkshire stock is working on a consolidation with a 362.20 buy point. See if the stock can clear the breakout price in heavy trade.
In terms of fundamentals, Berkshire reported 44% earnings growth last quarter, to $4.21 per share. Sales rose 10% to $76.2 billion.
Peers In Diversified Operations Group
Berkshire stock earns the No. 7 rank among its peers in the Diversified Operations industry group. Smaller caps Carlisle, Otter Tail and Seaboard are also among the group's highest-rated stocks.
As you try to find the best stocks to buy and watch, keep a close on eye on relative price strength.
IBD's unique Relative Strength Rating tracks market leadership by using a 1 (worst) to 99 (best) score that identifies how a stock's price performance over the trailing 52 weeks stacks up against all the other stocks in our database.
