Berkshire Hathaway (BRK.B) Is Today's Unusual Social Activity Stock

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified Berkshire Hathaway ( BRK.B) as an unusual social activity candidate. In addition to specific proprietary factors, Trade-Ideas identified Berkshire Hathaway as such a stock due to the following factors:

  • BRK.B has 15x the normal benchmarked social activity for this time of the day compared to its average of 5.67 mentions/day.
  • BRK.B has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $380.9 million.

Identifying stocks with 'Unusual Social Activity' tends to be a valuable process for traders looking to capitalize on the 'talk of the town' stocks that are basking in far more attention from the StockTwits financial community than normal. Good press? Bad press? It ultimately doesn't matter if it's good or bad if you know how to trade around the sentiment. Certain hedge funds use such data for their proprietary algorithms and it is not uncommon to see shared social sentiment play itself out in a stock's price trend.

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More details on BRK.B:

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. BRK.B has a PE ratio of 15.8.

The average volume for Berkshire Hathaway has been 3.5 million shares per day over the past 30 days. Berkshire Hathaway has a market cap of $134.3 billion and is part of the financial sector and insurance industry. Shares are up 28% year to date as of the close of trading on Thursday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Berkshire Hathaway as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, compelling growth in net income, notable return on equity and solid stock price performance. We feel these strengths outweigh the fact that the company shows low profit margins.

Highlights from the ratings report include:
  • Since the same quarter one year prior, revenues rose by 13.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Net operating cash flow has increased to $7,826.00 million or 17.66% when compared to the same quarter last year.
  • The net income increased by 28.9% when compared to the same quarter one year prior, rising from $3,920.00 million to $5,053.00 million.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization.
  • Compared to where it was trading one year ago, BRK.B is up 33.21% to its most recent closing price of 113.83. Looking ahead, although the push and pull of a bull or bear market could certainly alter the outcome, our view is that this stock's positive fundamentals give it good potential for further appreciation.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
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