Warren Buffett identifies Kraft Heinz, American Express, and Chevron as cheap investment opportunities
From Nasdaq: 2024-10-17 04:30:00
Berkshire Hathaway’s portfolio includes top blue chip stocks, with potential deals found in Kraft Heinz, American Express, and Chevron. Kraft’s revenue is down 2% to $12.9 billion but has a cheap forward P/E of 11 and a 4.5% dividend yield. American Express has strong sales and profit margins, trading at a forward P/E of 18. Chevron has a forward P/E of 12 and a 4.3% dividend yield, making it a solid long-term investment.
Kraft Heinz, a large holding for Berkshire, faces challenges with consumer trading down to no-name brands, impacting sales. Despite this, revenue is fairly stable at $12.9 billion and Kraft’s forward P/E of 11 is attractive, with a 4.5% dividend yield. This makes it a compelling buy for investors looking for strong brands and dividends.
American Express, Berkshire’s largest holding after Apple, has a wealthy customer base and record sales numbers. This credit card company’s revenue is up 10%, adjusted earnings rose by 29%, and it operates on strong profit margins. With a forward P/E of 18, American Express looks attractive compared to competitors Visa and Mastercard.
Chevron, representing 6% of Berkshire’s holdings, is a top stock with significant earnings of over $72 billion in three years. The oil producer’s forward P/E is just over 12, with a 4.3% dividend yield. This makes Chevron a solid investment option for diversification, protection against inflation, and a strong dividend.
Don’t miss the chance to potentially invest in the next big stocks. Explore “Double Down” stock recommendations with a track record of substantial returns on companies like Amazon, Apple, and Netflix. Timing is crucial, so act now to capitalize on the growth potential of these companies before it’s too late. *Stock Advisor returns as of October 14, 2024.
American Express is an advertising partner of The Ascent, a Motley Fool company. The author has no positions in the mentioned stocks. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, Chevron, Mastercard, and Visa, and recommends Kraft Heinz.
Read more at Nasdaq: 3 Top Warren Buffett Stocks That Are Absurdly Cheap Buys Right Now