While investors shouldn’t take the advice of any one expert, a possible exception can be made regarding Warren Buffett stocks to buy. Granted, you should still do your due diligence – that goes for anything. However, the Oracle of Omaha is simply a cut above the rest.
First, the man has seen an economic cycle or five. That’s what separates the Oracle from other so-called market gurus. Yes, some magic system can claim to generate 10X returns or whatever consistently. From what I know, all such systems fail or were never that great to begin with. Long-term success comes from understand the fundamentals, clearly one of Buffett’s forte.
Second, the Oracle has navigated both bull and bear markets. Frankly, anyone can do well in a bull market. Just buy a few solid businesses and watch their valuations expand with the benchmark indices. It’s the true expert, though, that sees positive returns during the downcycles.
On that note, below are Warren Buffett stocks to buy this month.
Occidental Petroleum (OXY)
Based in Houston, Texas, Occidental Petroleum (NYSE:OXY) falls under the hydrocarbon exploration and production (upstream) category. Per its public profile, Occidental with its subsidiaries engages in the acquisition, exploration and development of oil and gas properties in the U.S., the Middle East and North Africa. It also features midstream and marketing segments, giving Occidental an integrated flavor.
Presently, covering experts peg OXY stock as a hold with a $72.15 average price target. The high-side target goes up to $90. Part of the optimistic sentiment may center on the general consistency of the enterprise. From the second quarter of 2023 to Q1 2024, Occidental’s average positive earnings surprise came out to 11.03%.
In the trailing 12 months (TTM), the energy giant posted net income of $3.3 billion on revenue of $27.01 billion. For fiscal 2024, analysts anticipate earnings per share to expand by nearly 3% to reach $3.80. Further, sales could be $29.22 billion, implying 1.1% growth.
That doesn’t sound like much. However, geopolitics driving the case for upstream players, the high-side revenue target of $31.9 billion may be in play. Thus, OXY is one of the Warren Buffett stocks to buy.
Kraft Heinz (KHC)
Based in Pittsburgh, Pennsylvania, Kraft Heinz (NASDAQ:KHC) is one of the top names in the packaged foods industry. Primarily, the company is best known for its condiments and sauces. As well, it boasts a portfolio of cheese and dairy products, meals, meats, refreshment beverages and coffee. Some of its most popular brands include Oscar Mayer, Philadelphia and Jell-O, in addition to its namesake labels.
While it’s not the most exciting idea out there, KHC carries a moderate buy consensus view among analysts. Its average price target comes in at $39.31, with a high-side target of $45. The optimism can be attributed to its financial consistency. In the past four quarters since Q1 2024, Kraft Heinz’s average positive earnings surprise landed at 3.6%.
In the TTM period, the food-and-beverage specialist posted net income of $2.82 billion on revenue of $26.56 billion. For fiscal 2024, experts anticipate EPS of $3.03, implying 9.4% expansion. Revenue could grow 7.9% to hit $26.69 billion. The company also offers a forward dividend yield of 4.46%. With that, KHC ranks among the top Warren Buffett stocks to buy.
Chubb (CB)
Insurance and reinsurance companies aren’t exactly known for generating headlines (unless it’s for bad reasons). However, property and casualty specialist Chubb (NYSE:CB) enjoyed a significant volume increase in eyeballs thanks to the Oracle of Omaha. As InvestorPlace contributor Larry Ramer explained, CH represented the mystery stock that Buffett’s Berkshire Hathaway (NYSE:BRK-A, NYSE:BRK-B) recently disclosed.
One of the key catalysts for Chubb focuses on the huge increases in premiums. Cynically, insurance clients have little option but to pay them. Otherwise, the consequences of not going without insurance can be catastrophic. Another reason why the Oracle may have added CB to his portfolio is the financial consistency. In the past four quarters, the average surprise reached 8.35%.
During the TTM period, Chubb posted net income of $9.28 billion on sales of $51.79 billion. For fiscal 2024, analysts anticipate that EPS may increase 9.5% to reach $21.68. On the top line, an expansion of 8.4% could see sales of $45.4 billion. Along with a forward yield of 1.37% and a durable business model, CB ranks among the best Warren Buffett stocks to buy.
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.