Berkshire Hathaway Inc (BRK.B): Today's Featured Insurance Laggard

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.B) pushed the Insurance industry lower today making it today's featured Insurance laggard. The industry as a whole closed the day down 0.4%. By the end of trading, Berkshire Hathaway fell $1.23 (-1.1%) to $111.54 on average volume. Throughout the day, 3,592,056 shares of Berkshire Hathaway exchanged hands as compared to its average daily volume of 3,890,500 shares. The stock ranged in price between $111.25-$112.53 after having opened the day at $112.52 as compared to the previous trading day's close of $112.77. Other companies within the Insurance industry that declined today were: MGIC Investment Corporation ( MTG), down 3.9%, Everest Re Group ( RE), down 3.6%, Radian Group ( RDN), down 3.1% and PartnerRe ( PRE), down 3.0%.
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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 $127.1 billion and is part of the financial sector. The company has a P/E ratio of 18.8, above the S&P 500 P/E ratio of 17.7. Shares are up 25.7% year to date as of the close of trading on Wednesday.

TheStreet Ratings rates Berkshire Hathaway as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, impressive record of earnings per share growth, attractive valuation levels and good cash flow from operations. We feel these strengths outweigh the fact that the company shows low profit margins.

On the positive front, Phoenix Companies ( PNX), down 7.5%, Aviva ( AV), down 6.3%, Homeowners Choice ( HCI), down 4.5% and Kingsway Financial Services ( KFS), down 3.0%.

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).

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