NEW YORK ( TheStreet) -- Berkshire Hathaway Inc (NYSE: BRK.B) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, increase in net income, attractive valuation levels, good cash flow from operations and growth in earnings per share. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:
  • BRK.B's revenue growth has slightly outpaced the industry average of 20.7%. Since the same quarter one year prior, revenues rose by 20.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Insurance industry average. The net income increased by 73.6% when compared to the same quarter one year prior, rising from $1,968.00 million to $3,417.00 million.
  • Net operating cash flow has significantly increased by 82.71% to $6,481.00 million when compared to the same quarter last year. In addition, BERKSHIRE HATHAWAY has also modestly surpassed the industry average cash flow growth rate of 82.68%.
  • BERKSHIRE HATHAWAY reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, BERKSHIRE HATHAWAY reported lower earnings of $5.30 versus $103.78 in the prior year. This year, the market expects an improvement in earnings ($6397.20 versus $5.30).

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. The company has a P/E ratio of 17.8, above the average insurance industry P/E ratio of 14.5 and equal to the S&P 500 P/E ratio of 17.7. Berkshire Hathaway has a market cap of $80.8 billion and is part of the financial sector and insurance industry. Shares are up 0.5% year to date as of the close of trading on Friday.

You can view the full Berkshire Hathaway Ratings Report or get investment ideas from our investment research center.
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