Wall Street recommends these Warren Buffett-held stocks.
When it comes to choosing a role model, investors can’t do much better than Berkshire Hathaway Inc. (ticker: BRK.A, BRK.B) CEO and Wall Street icon Warren Buffett. There are countless books, articles and interviews highlighting Buffett’s value investing philosophy. Thanks to SEC 13-F filings, Buffett’s disciples get quarterly updates on every stock Berkshire is buying and selling. Today, Berkshire holds nearly 50 stocks. Finviz compiles all the analyst ratings of each stock into a score ranging from 1 to 5 — a “strong buy” to a “strong sell.” Here are the eight Buffett-held stocks with the best composite analyst rating scores, according to Finviz’s compilation.
Diageo PLC (DEO)
Diageo is a leading global wine and spirits company and the owner of the popular Guinness stout brand. Bank of America analyst Andrea Pistacchi says Diageo has attractive long-term growth potential and an earnings profile that is relatively resilient in a challenging macroeconomic environment. Pistacchi says Diageo will likely gain market share and continue to trade at a premium valuation to other consumer staples stocks. Berkshire holds just 227,750 shares of Diageo, worth about $40.1 million, a tiny position by Buffett’s standards. Diageo has a composite analyst rating of 1.7. Bank of America has a “buy” rating and $207 price target for DEO stock, which closed at $175.57 on Sept. 7.
Liberty SiriusXM Group (LSXMA)
Liberty SiriusXM is a tracking stock for Liberty Media’s stakes in SiriusXM Holdings Inc. (SIRI), Live Nation Entertainment Inc. (LYV), iHeartMedia Inc. (IHRT), the Atlanta Braves and Liberty Formula One. Between Liberty SiriusXM’s Series A and Series C shares, Berkshire holds a total of about 63 million shares of Liberty SiriusXM, worth a combined $2.62 billion. Bank of America analyst Jessica Reif Ehrlich is particularly bullish on the long-term growth prospects of SiriusXM’s subscription-based radio service. Liberty SiriusXM has a composite analyst rating of 1.7. Bank of America has a “buy” rating and $54 price target for LSXMA stock, which closed at $41.01 on Sept. 7.
Mastercard Inc. (MA)
It’s been more than a decade since Buffett first invested in credit card giant Mastercard, and the stock is up roughly 1,260% in that time. CFRA analyst David Holt says Mastercard’s volume-driven business helps insulate it from inflationary pressures and choppy consumer spending. In addition, he says the secular shift from cash and check payments to digital payments is a tail wind for Mastercard. Berkshire holds 3.98 million shares of Mastercard that are worth about $1.23 billion. Mastercard has a composite analyst rating of 1.8. CFRA has a “buy” rating and $440 price target for MA stock, which closed at $328.62 on Sept. 7.
Floor & Decor Holdings Inc. (FND)
Floor & Decor is a specialty retailer of flooring and related accessories. Buffett first invested in Floor & Decor in the third quarter of 2021. The stock has been a major disappointment for Buffett so far, down roughly 30% overall. But Bank of America analyst Elizabeth Suzuki says Floor & Decor is one of the strongest growth names in the hardline retail space. Berkshire holds about 4.78 million shares of FND stock, worth about $388.9 million. Floor & Decor has a composite analyst rating of 1.8. Bank of America has a “buy” rating and $107 price target for FND stock, which closed at $81.73 on Sept. 7.
Amazon.com Inc. (AMZN)
Buffett famously missed out on much of Amazon’s historic rise, but Berkshire finally got on the Amazon train in 2019. Morningstar analyst Dan Romanoff is one of dozens of analysts who are still bullish on Amazon. He says Amazon’s e-commerce business is stabilizing following the pandemic, and its AWS cloud services and advertising businesses will continue to serve as growth drivers. Today, Berkshire holds 10.6 million shares of Amazon, worth about $1.35 billion. Amazon has a composite analyst rating of 1.8. Morningstar has a “buy” rating and $192 fair value estimate for AMZN stock, which closed at $129.48 on Sept. 7.
T-Mobile US Inc. (TMUS)
U.S. wireless provider T-Mobile was one of Berkshire’s highest-profile buys of 2020. At first glance, T-Mobile shares aren’t valued as cheaply as Verizon Communications Inc. (VZ) or AT&T Inc. (T) based on the companies’ earnings, and T-Mobile doesn’t pay a dividend. However, CFRA analyst Keith Snyder says T-Mobile is positioned to outgrow its competitors following its Sprint acquisition, and he says the company’s 5G network is well ahead of Verizon’s and AT&T’s. Berkshire holds 5.24 million T-Mobile shares, worth about $754.6 million. T-Mobile has a composite analyst rating of 1.8. CFRA has a “strong buy” rating and $160 price target for TMUS stock, which closed at $145.50 on Sept. 7.
Visa Inc. (V)
Payments leader Visa is another stock that both Buffett and Wall Street analysts love. Buffett took a huge stake in Visa in 2011, just two quarters after buying competitor Mastercard for the first time. Since Buffett first invested, Visa shares are up about 839%. Holt says Visa has an attractive valuation and impressive business fundamentals that should help it increase operating leverage and generate high returns on capital in the long term. Today, Berkshire holds 8.2 million shares of Visa stock, worth about $1.64 billion. Visa has a composite analyst rating of 1.8. CFRA has a “buy” rating and $265 price target for V stock, which closed at $200.42 on Sept. 7.
Apple Inc. (AAPL)
Not only is Apple one of Berkshire’s highest-rated holdings among Wall Street analysts, it is also Berkshire’s largest public stock holding by far. Berkshire holds more than 915.2 million shares of Apple, worth an incredible $143.89 billion, a stake that represents about 40% of Berkshire’s entire stock portfolio. In fact, Berkshire’s Apple stake is more than four times as large as any of its other stock holdings. Bank of America analyst Wamsi Mohan anticipates a strong iPhone upgrade cycle in fiscal 2023. Apple has a composite analyst rating of 1.9. Bank of America has a “buy” rating and $185 price target for AAPL stock, which closed at $155.96 on Sept. 7.
8 Buffett stocks that analysts love:
— Diageo PLC (DEO)
— Liberty SiriusXM Group (LSXMA)
— Mastercard Inc. (MA)
— Floor & Decor Holdings Inc. (FND)
— Amazon.com Inc. (AMZN)
— T-Mobile US Inc. (TMUS)
— Visa Inc. (V)
— Apple Inc. (AAPL)
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8 Warren Buffett Stocks to Buy Now originally appeared on usnews.com
Update 09/08/22: This story was previously published and has been updated with new information.
