8 Best Value Stocks to Invest In According To Warren Buffett

6. The Kraft Heinz Company (NASDAQ:KHC)

Expected Earnings Growth 2024: 9%

Latest P/E Ratio: 10.9

Warren Buffett’s Q2 2024 Stake: $10.49 Billion

Number of Hedge Fund Investors as of Q2 2024: 43

Kraft Heinz Co (NASDAQ:KHC) is a consumer defensive play by Warren Buffett that manufactures and markets food and beverage products. Its product line includes cheese and dairy products, meals, meats, refreshment beverages, coffee, and other grocery products.

Its competitive edge as one of the best value stocks to invest in, according to Warren Buffett, stems from implementing solid pricing strategies that have allowed it to strengthen its performance amid the high interest rate environment and inflationary pressures.

The firm effectively maintained its second-quarter 2024 adjusted gross profit at $2,296 million, an increase from $2,239 million in the previous year’s same period. It enhanced its quarterly adjusted gross margin by 210 basis points (bps), reaching 35.5%.

This notable achievement demonstrates the effectiveness of pricing strategies designed to counteract the increase in raw material costs. Kraft Heinz Co (NASDAQ:KHC)’s adjusted operating income rose by 2% to $1,380 million in the second quarter, underscoring the advantages of lower costs related to commodities and logistics.

Kraft Heinz Co (NASDAQ:KHC) keeps outperforming in its three main areas of food service, Emerging Markets, and U.S. Retail Expansion platforms, even with obstacles in the consumer market. KHC is diligently working to change its business model to realize its complete potential and increase its value for its shareholders.

The outperformance is one of the reasons the company’s earnings are projected to increase by 12.50% in the current quarter and 9% for the entire year. Amid sales and earnings growth, Kraft Heinz Co (NASDAQ:KHC) returns value to shareholders with a dividend yield of 4.61%—additionally, the stock trades at a discount with a price-to-earnings multiple of 10.9.

By the end of Q2 2024, 43 hedge funds listed in Insider Monkey’s database had invested in Kraft Heinz Co (NASDAQ:KHC). Warren Buffett’s Berkshire Hathaway is the company’s leading shareholder, with 325.63 million shares.