In this article, we discuss the 5 best value stocks to buy according to Warren Buffett. If you want to read our detailed analysis of Buffett’s investment strategies, go directly and see the 11 Best Value Stocks To Buy According To Warren Buffett.
5. DaVita Inc. (NYSE:DVA)
Berkshire Hathaway’s Stake Value: $4,346,990,000
Percent of Berkshire Hathaway 13F Portfolio: 1.48%
Number of Hedge Fund Holders: 39
PE Ratio (TTM): 14.79
DaVita Inc. (NYSE:DVA) is an American healthcare company that specializes in providing kidney dialysis services to patients suffering from chronic kidney diseases. The company stands fifth on our list of the best value stocks to buy according to Warren Buffett.
As of Q2 2021, Berkshire Hathaway holds over 36 million shares in DaVita Inc. (NYSE:DVA), valued at $4.34 billion. The company accounts for 1.48% of the hedge fund’s 13F portfolio. In Q2 2021, DaVita Inc. (NYSE:DVA) posted a GAAP EPS of $2.46, beating the estimates by $0.68. The company’s revenue for the quarter stood at $2.92 billion, up 2% from the prior-year quarter. This September, Cowen initiated its coverage on DaVita Inc. (NYSE:DVA) with a ‘Market Perform’ rating and a $145 price target. The company’s trailing-twelve-month P/E ratio stands at 14.79.
As of Q2 2021, 39 hedge funds tracked by Insider Monkey have positions in DaVita Inc. (NYSE:DVA), up from 34 in the previous quarter. The total value of these stakes is over $5.1 billion.
4. U.S. Bancorp (NYSE:USB)
Berkshire Hathaway’s Stake Value: $7,342,802,000
Percent of Berkshire Hathaway 13F Portfolio: 2.5%
Number of Hedge Fund Holders: 41
PE Ratio (TTM): 13.16
U.S. Bancorp (NYSE:USB) is an American bank holding company that offers financial services to its consumers. The company ranks fourth on our list of the best value stocks to buy according to Warren Buffett.
As of Q2 2021, Berkshire Hathaway owns approximately 129 million shares in U.S. Bancorp (NYSE:USB), valued at over $7.3 billion. The company represents 2.5% of the hedge fund’s 13F portfolio. Recently, Jefferies lifted its price target on U.S. Bancorp (NYSE:USB) to $71, with a ‘Buy’ rating on the shares. The company pays an annual dividend of $1.84 per share, yielding 2.96%. In the past year, U.S. Bancorp (NYSE:USB) delivered a 55.4% return to shareholders.
As of Q2 2021, 41 hedge funds tracked by Insider Monkey have positions in U.S. Bancorp (NYSE:USB), compared with 43 in the previous quarter. The total worth of these stakes is over $8.3 billion.
3. Verizon Communications Inc. (NYSE:VZ)
Berkshire Hathaway’s Stake Value: $8,898,941,000
Percent of Berkshire Hathaway 13F Portfolio: 3.03%
Number of Hedge Fund Holders: 63
PE Ratio (TTM): 10.64
Verizon Communications Inc. (NYSE:VZ) is an American multinational telecommunication company, which ranks third on our list of the best value stocks to buy according to Warren Buffett.
As of Q2 2021, Berkshire Hathaway holds 158.8 million shares in Verizon Communications Inc. (NYSE:VZ), valued at over $8.89 billion. The company represents 3.03% of the hedge fund’s 13F portfolio. On September 2, Verizon Communications Inc. (NYSE:VZ) announced a 2% increase in its quarterly dividend to $0.64 per share, yielding 4.66%. This July, JPMorgan raised its price target on Verizon Communications Inc. (NYSE:VZ) to $65, while keeping an ‘Overweight’ rating on the shares. The company has a trailing-twelve-month P/E ratio of 10.64.
As of Q2 2021, 63 hedge funds tracked by Insider Monkey have positions in Verizon Communications Inc. (NYSE:VZ), down from 69 in the previous quarter. The total value of these stakes is approximately $11 billion.
Miller/Howard Investments mentioned Verizon Communications Inc. (NYSE:VZ) in its Q1 2021 investor letter. Here is what the firm has to say:
“We sold Verizon (VZ) based on concerns over how much they might spend in ongoing spectrum auctions. Management may legitimately view spending billions of dollars to expand their spectrum holdings as necessary, but we believe the payoff will be slow and will make it challenging to grow the dividend at a good pace.”
2. The Kraft Heinz Company (NASDAQ:KHC)
Berkshire Hathaway’s Stake Value: $13,279,388,000
Percent of Berkshire Hathaway 13F Portfolio: 4.53%
Number of Hedge Fund Holders: 33
PE Ratio (TTM): 20.5
The Kraft Heinz Company (NASDAQ:KHC) stands second on our list of the best value stocks to buy according to Warren Buffett. It is an American food company that owns over 40 brands. The company is one of the largest food companies in the world.
As of Q2 2021, Berkshire Hathaway owns over 325.6 million shares in The Kraft Heinz Company (NASDAQ:KHC), valued at $13.2 billion. The company represents 4.53% of the fund’s 13F portfolio. In Q2 2021, The Kraft Heinz Company (NASDAQ:KHC) posted an EPS of $0.78, beating the estimates by $0.06. The company’s revenue for the quarter stood at $6.62 billion, surpassing the consensus by $70 million. The company pays an annual dividend of $1.60, yielding 4.34%. In September, Morgan Stanley initiated its coverage on The Kraft Heinz Company (NASDAQ:KHC) with an ‘Equal Weight’ rating and a $37 price target. In the past year, the stock returned 16.4%.
As of Q2 2021, 33 hedge funds tracked by Insider Monkey have positions in The Kraft Heinz Company (NASDAQ:KHC), the same as in the previous quarter. The total value of these stakes is over $13.5 billion.
1. Bank of America Corporation (NYSE:BAC)
Berkshire Hathaway’s Stake Value: $41,646,448,000
Percent of Berkshire Hathaway 13F Portfolio: 14.21%
Number of Hedge Fund Holders: 87
PE Ratio (TTM): 14.40
Bank of America Corporation (NYSE:BAC) tops our list of the best value stocks to buy according to Warren Buffett. It is an American multinational investment bank that also offers financial services to its consumers.
As of Q2 2021, Bank of America Corporation (NYSE:BAC) is the second-largest holding of Berkshire Hathaway as the hedge fund owns over 1 trillion shares in the company, valued at $41.6 billion. The company accounts for 14.21% of the fund’s 13F portfolio. In Q2 2021, Bank of America Corporation (NYSE:BAC) posted a GAAP EPS of $1.03, beating the estimates by $0.26. In September, Odeon Capital group upgraded Bank of America Corporation (NYSE:BAC) to ‘Buy’, with a $46.50 price target. Since the beginning of the year, the stock has delivered a 44.99% return to shareholders, while it gained 74.51% in the past year.
As of Q2 2021, 87 hedge funds tracked by Insider Monkey have positions in Bank of America Corporation (NYSE:BAC), compared with 97 in the previous quarter. The total value of these stakes is over $46.5 billion.
ClearBridge Investments mentioned Bank of America Corporation (NYSE:BAC) in its Q1 2021 investor letter. Here is what the firm has to say:
“Higher long-term interest rates supported financials such as Bank of America, which has shown both defensive and offensive characteristics in the past year. We believe it continues to be the least risky large bank from a credit standpoint, with conservative underwriting and controlled risk taking, a leading consumer deposit franchise, scale and technology. It is also a leader in its commitments to sustainability, or as it terms it, responsible growth. Disclosure and reporting at all levels form a large part of this commitment, including gender diversity and equality, environmental commitments and support of communities in which it operates. In the first quarter Bank of America announced it is setting a goal of net-zero greenhouse gas (GHG) emissions in its supply chain and operations, and notably also in its financing activities, before 2050.”
You can also take a look at 12 Best Value Dividend Stocks to Buy Now and Top 10 Undervalued Tech Stocks
