10 Best Financial Services Stocks To Buy According to Analysts

6. Berkshire Hathaway Inc. (NYSE:BRK.B)

Upside Potential as of January 9: 10.22%

Berkshire Hathaway Inc. (NYSE:BRK.B), a holding company that is among the Best Financial Stocks, has multiple separate subsidiaries that engage in a range of operations. Geico, Berkshire Hathaway Primary Group, and Berkshire Hathaway Reinsurance Group are primarily responsible for the company’s insurance business. The surplus funds from these and other businesses have been used by Berkshire over the years to purchase the railroad Burlington Northern Santa Fe, the utility and energy distributor Berkshire Hathaway Energy, and the companies that make up its manufacturing, service, and retailing businesses, including five of its largest noninsurance pretax earnings generators: Precision Castparts, Lubrizol, Clayton Homes, Marmon, and IMC/ISCAR. The conglomerate stands out due to its completely decentralized operations. The business ended 2024 with a gain of over 23.0%.

In Q3 2024, Berkshire Hathaway Inc. (NYSE:BRK.B) reported strong net earnings growth, reaching $26.3 billion, compared to a loss of $12.8 billion in Q3 2023, driven by notable $16.2 billion in investment gains. Insurance investment income increased 48% year over year to $3.7 billion, supporting operating profitability, which stayed strong at $10.1 billion. The insurance float increased by $5 billion to $174 billion, and the $2.9 billion share repurchase displays effective capital management.

Growth at Berkshire Hathaway Energy and BNSF further improved the results. Berkshire Hathaway Energy reported a 227% increase in earnings in Q3 2024, reaching $1.63 billion from $498 million in Q3 2023. Earnings for BNSF increased 13% year over year to $1.38 billion from $1.22 billion in Q3 2023.

Estimates for Berkshire Hathaway Inc. (NYSE:BRK.B) shares range from $465 to $531, with a 12-month average price objective of $498. The average target suggests a 10.22% increase from the current price of $451.84.