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While the US Federal Reserve’s final interest rate meeting this year could see an unusual amount of division, financial markets view a third straight interest rate cut as nearly certain.

When the Fed last met in October, Chair Jerome Powell asserted that another rate cut in December was “not a foregone conclusion,” pointing to “strongly differing views” within the central bank.

Minutes from the Fed’s most recent meeting showed many officials expect a further uptick in underlying goods inflation as President Donald Trump’s tariffs bite.

But recent comments from leading Fed officials also reflected support for cutting again because of a weakening labor market, even though inflation is still above the Fed’s two percent target.

Next week’s outcome in the “deeply divided” Fed was “too close to call,” UniCredit said, also acknowledging that favorable comments from New York Fed bank chief John Williams towards a cut were a notable “intervention.”

“As one of the most senior members of the (Fed committee), it seems unlikely Williams would have said this without Powell’s prior approval,” UniCredit said.

Policymakers generally hold rates at a higher level to tamp down price increases, but a rapidly deteriorating jobs market could nudge them to slash rates further to boost the economy.

“Usually, as you get closer to a policy meeting, it becomes quite apparent and transparent what the Federal Open Market Committee is going to do,” said Nationwide Chief Economist Kathy Bostjancic, referring to the Fed’s rate-setting committee.

“This time is very different,” she told AFP late last month.

Financial markets rallied following Williams’ statement on November 21 that rates could go lower in the “near term.”

Futures markets currently show more than 87 percent odds that the Fed will cut rates to between 3.50 percent and 3.75 percent, according to CME FedWatch.

– Dearth of data –

The Fed moved into rate cutting mode this fall, with rate cuts both in September and October.

But a government shutdown from October 1 through November 12 sapped the central bank of most of the key data points for assessing whether inflation or employment is now the bigger priority.

The latest available government data showed the jobless rate crept up from 4.3 percent to 4.4 percent in September, even as hiring beat expectations.

While delayed publications on September’s economic conditions have trickled out, the US government has canceled full releases of October jobs and consumer inflation figures because the shutdown hit data collection.

Instead, available figures will be published with November’s reports, but only after the Fed’s upcoming rate meeting.

The US personal consumption expenditures price index rose to 2.8 percent on an annual basis in September, from 2.7 percent in August, according to delayed data released on Friday.

The “Fed faces a bit of a paradoxical situation,” said EY-Parthenon Chief Economist Gregory Daco. “The Fed says these decisions will be data-dependent, but there isn’t a lot of data to go on.”

Daco expects a “weak majority” to favor another interest rate cut, but believes there could be multiple dissents.

– Looking beyond Powell –

Besides Wednesday’s decision, the Fed will also release projections for its 2026 economic and monetary policy outlook.

Next year will already mark a period of significant change with the conclusion of Powell’s tenure as chair in May.

Trump, who has relentlessly criticized Powell for not cutting rates more aggressively, signaled this week that his chief economic adviser Kevin Hassett could succeed Powell.

Hassett has appeared to be in lockstep with Trump on key economic questions facing the Fed. But if appointed, Hassett could also face pressure from financial markets to buck the White House on interest rates if inflation worsens.

“The institutional constraints often end up leading appointees towards some level of political independence,” said Daco, noting decisions require a board majority.

Whomever Trump picks will need to be confirmed in the US Senate.

While UniCredit predicted “political interference will have a modest impact on Fed policy,” deeper consequences cannot be ruled out.

“We have not assumed Trump will get de-facto control of the Fed,” UniCredit said, adding that such an outcome is “a non-negligible risk.”

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A higher or lower “normal” multiple tends to reflect how quickly a business can grow those sales and how risky that growth looks. Faster, more predictable growth usually aligns with a higher Price to Sales ratio, while slower or shakier growth is often closer to or below the market and industry averages.

STAAR Surgical currently trades on a Price to Sales ratio of about 5.47x, which is meaningfully above both the Medical Equipment industry average of roughly 3.37x and the peer average of around 3.37x. Simply Wall St’s Fair Ratio for STAAR is 3.79x, a proprietary estimate of the multiple the stock could trade on given its growth outlook, profitability, industry, size, and risk profile.

Because the Fair Ratio blends all of these fundamentals, it is a more nuanced benchmark than a simple peer or industry comparison. With STAAR’s current 5.47x sitting well above the 3.79x Fair Ratio, the stock screens as overvalued on this measure.

Result: OVERVALUED

PS ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1450 companies where insiders are betting big on explosive growth.

Earlier we mentioned that there is an even better way to understand valuation, so let us introduce you to Narratives, a simple way to connect your view of a company with the numbers behind it. A Narrative is the story you believe about a business, expressed through assumptions about its future revenue, earnings and margins, which then flow through to a forecast and an estimated fair value. On Simply Wall St, Narratives are an easy, accessible tool on the Community page, where millions of investors can turn their perspective on a company into a structured financial view. By comparing your Narrative Fair Value to the current share price, you can quickly decide how STAAR Surgical aligns with your own investment view as a potential buy, hold or sell, and because Narratives update dynamically as new news, earnings or guidance comes in, your view remains current rather than static. For example, on STAAR Surgical today, one investor might see upside to a fair value around $28 on the back of a China recovery and new products, while another could take a more cautious stance closer to $16 if they doubt the rebound and worry more about competition and execution risk.

Do you think there’s more to the story for STAAR Surgical? Head over to our Community to see what others are saying!

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include STAA.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

Berkshire Hathaway (BRK.B) quietly keeps doing what it does best, compounding value in the background while the market chases headlines. With the stock grinding higher this year, it is worth unpacking what is driving that steady climb.

See our latest analysis for Berkshire Hathaway.

At around $504.34 per B share, Berkshire’s steady 11.8 percent year to date share price return and five year total shareholder return of 122.77 percent suggest that long term momentum remains firmly intact, even if short term sentiment occasionally wobbles.

If Berkshire’s slow and steady climb appeals to you, it may be worth seeing what else is available by exploring fast growing stocks with high insider ownership.

With shares hovering near record highs yet still trading at a sizable discount to some intrinsic value estimates, investors face a familiar Berkshire dilemma: is this a fresh buying opportunity or is future growth already priced in?

On a last close of $504.34 per B share, Berkshire trades on a 16.1x price to earnings ratio, cheaper than many peers despite its scale and track record.

The price to earnings multiple compares what investors are paying today for each dollar of current earnings. This is a particularly relevant lens for a mature, diversified conglomerate like Berkshire Hathaway. With a five year earnings growth rate of 5.4 percent per year and high quality earnings, the current multiple suggests the market is not extrapolating especially aggressive profit growth from here.

Against direct peers, Berkshire looks attractively priced, with its 16.1x price to earnings ratio sitting well below the peer average of 25.3x. However, within the broader US diversified financials industry, the shares appear more fully valued. They are trading above the 13.6x industry average and only slightly below the estimated fair price to earnings ratio of 16.9x, a level the market could gravitate toward if sentiment or fundamentals shift.

Explore the SWS fair ratio for Berkshire Hathaway

Result: Price to Earnings of 16.1x (UNDERVALUED)

However, Berkshire is not risk free. Slowing earnings growth and a recent net income decline raise questions about how long its valuation gap can persist.

Find out about the key risks to this Berkshire Hathaway narrative.

While the 16.1x price to earnings ratio hints at sensible pricing, our DCF model tells a stronger story. With shares at $504.34 versus an estimated fair value of $768.37, Berkshire screens as materially undervalued, raising the question of whether the market is underestimating its long term cash generation.

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Berkshire Hathaway for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 911 undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match – so you never miss a potential opportunity.

If you see things differently or want to dive into the numbers yourself and shape your own investment story in minutes, Do it your way.

A great starting point for your Berkshire Hathaway research is our analysis highlighting 1 key reward and 2 important warning signs that could impact your investment decision.

If Berkshire has your attention, do not stop there. Use the Simply Wall Street Screener to uncover more targeted opportunities that match your strategy.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include BRK-B.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com