Berkshire Hathaway, led by renowned investor Warren Buffett, continues to be a key player in the market with its diverse portfolio and strategic investments. Wald's perspective on this conglomerate, as well as his views on the other market movers, offers valuable perspectives for investors and industry observers alike.
According to Ari Wald, head of technical analysis at Oppenheimer, Berkshire Hathaway's stock is poised to reach new highs in the coming months. Following a stellar earnings report that saw a 71% increase in fourth-quarter operating profit to $14.5 billion, both the A shares and B shares of Berkshire Hathaway surged about 4% higher. While A shares may be out of reach for everyday investors with a price tag of $747,485, B shares, priced around $500 per share, present a more accessible investment opportunity.
Berkshire Hathaway Stock Expected to Reach New Highs
Wald emphasized the significance of the stock's recent performance, particularly amidst a day of lackluster market activity, and recommended buying into its strength, anticipating higher highs in the near future.In contrast, Domino's Pizza experienced a slight dip of about 1.5% after reporting an earnings and revenue miss for the fourth quarter.
Wald cautioned against viewing this as a buying opportunity, noting the stock's oscillation around its 200-day average since last July and its underperformance relative to the market.
Ari Wald, head of technical analysis at Oppenheimer, predicts that Berkshire Hathaway's stock will hit new highs in the upcoming months following a strong earnings report.
Berkshire Hathaway's Impressive Earnings Report
Instead, Wald favored Darden Restaurants, citing the company's stronger momentum, with a 4.4% gain so far this year.Among high-momentum stocks, Constellation Energy has captured market attention, despite recent market volatility. Wald included Constellation Energy on his large-cap buy list, emphasizing the importance of the stock maintaining its 200-day moving average to sustain its long-term uptrend.
While he recommended letting winners run, Wald acknowledged the need for patience in light of current market conditions. Constellation Energy has seen its shares rise by about 20% year to date following a remarkable 91% surge in 2024.
Berkshire Hathaway's A shares and B shares saw a 4% increase after the company reported a 71% surge in fourth-quarter operating profit, reaching $14.5 billion.
Positive Outlook on B Shares
While A shares may be out of reach for many investors, B shares are trading around $500 each, making them a more accessible option for those looking to invest in Berkshire Hathaway.
Technical Analysis on Berkshire Hathaway B Shares
Ari Wald highlighted the significant upward movement of Berkshire Hathaway B shares, signaling a potential continuation of the long-term uptrend and recommending buying into the strength of the stock.
Domino's Pizza Faces Challenges
On the other hand, Domino's Pizza experienced a 1.5% decline after falling short on earnings and revenue for the fourth quarter, leading Wald to advise against viewing this dip as a buying opportunity.
Preference for Darden Restaurants
Wald expressed a preference for Darden Restaurants over Domino's Pizza, noting the former's stronger momentum, with Darden seeing a 4.4% increase in value so far this year.
Constellation Energy's Market Position
Despite recent market volatility, Constellation Energy remains on Wald's buy list, with the stock up around 20% year to date and a focus on maintaining its 200-day moving average to sustain its long-term uptrend.
