5 Cheap Value Stocks to Buy According to Warren Buffett

1. Apple Inc. (NASDAQ:AAPL)

Value of Berkshire Hathaway’s 13F Position: $123.66 billion

Number of Hedge Fund Holders: 140

Apple Inc. (NASDAQ:AAPL) is one of the largest companies in the world and is a part of the American Big Five tech companies. It serves worldwide and is considered one of the most valuable brands. Apple Inc. (NASDAQ:AAPL) covered the most significant part of Berkshire Hathaway’s portfolio with a 41.76% concentration in Q3 2022. The fund held 894.802 million company shares, worth $123.66 billion.

Apple Inc. (NASDAQ:AAPL) stock lost 25.58% of its value year-to-date on December 21 and is trading at a PE ratio of 21.6x. In comparison, its peer average PE ratio stands at 33.1x. Moreover, the company reported massive cash and cash equivalents of $24.646 billion, which makes it a safe stock and also gives it room for dividend and share repurchase growth. These factors make Apple Inc. (NASDAQ:AAPL) a cheap value stock in Warren Buffett’s portfolio.

On December 19, JPMorgan analyst Samik Chatterjee maintained an Overweight rating on Apple Inc. (NASDAQ:AAPL)’s stock with a $190 price target, down from $200. Out of 27 analysts covering the company stock, 23 of them maintain a Buy or Outperform rating with a  $179.10 price target. In addition, even the lowest price forecast of $144 represents an upside from the current price of $135.45.

Here is what Alger Capital specifically said about Apple Inc. (NASDAQ:AAPL) in its Q2 2022:

“Apple Inc. (NASDAQ:AAPL) is a leading technology provider in telecommunications. computing and services. Apple’s iOS operating system is the company’s unique intellectual property and competitive strength. This software drives extremely tight engagement with consumers and enterprises. The engagement is fostering the growing purchase of high-margin services like music, apps, and apple pay. Apple’s shares detracted from performance as management lowered its guidance for the second quarter due to headwinds from the war in Ukraine, adverse foreign currency shifts, and dampened consumer demand associated with the coronavirus in China. Additionally, many investors were concerned that lockdowns implemented to curtail the spread of COVID-19 would impact production of apple products, however the manufacturing facilities have resumed activity.”

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