Wall Street recommends these Warren Buffett-held stocks.
When it comes to choosing a role model, investors can't do much better than Berkshire Hathaway (ticker: BRK.A, BRK.B) CEO and Wall Street icon Warren Buffett. There are countless books, articles and interviews highlighting Buffett's value investing philosophy. Thanks to 13F filings, Buffett's disciples get quarterly updates on every stock Berkshire is buying and selling. Berkshire holds nearly 50 stocks. Finviz.com compiles analyst ratings of each stock into a score ranging from one to five — a "strong-buy" to "strong-sell" rating, respectively. Here are the eight Buffett stocks with the best composite analyst rating scores, according to Finviz.com.
Buffett famously missed out on much of Amazon's historic rise, but Berkshire finally got on the Amazon train in 2019. Morningstar analyst Dan Romanoff is one of the dozens of analysts who are still bullish on Amazon. He says the company's unrivaled scale and dominant positioning in e-commerce and cloud services will continue to produce big returns for investors for the foreseeable future. Berkshire holds 533,300 shares of Amazon worth about $1.8 billion. Amazon has a composite analyst rating of 1.7. Morningstar has a "buy" rating and a $4,200 fair-value estimate for AMZN stock.
Liberty SiriusXM Group Series A (LSXMA)
Liberty SiriusXM is a tracking stock for Liberty Media's stakes in SiriusXM (SIRI), Live Nation (LYV), iHeartMedia (IHRT), the Atlanta Braves and Liberty Formula One. Between Liberty SiriusXM's Series A and Series C shares, Berkshire holds a total of about 58 million shares of Liberty SiriusXM worth a combined $1.66 billion. Bank of America analyst Jessica Reif Ehrlich is particularly bullish on the long-term growth prospects of SiriusXM's subscription-based radio service. Liberty SiriusXM has a composite analyst rating of 1.7. Bank of America has a "buy" rating and a $56 price target for LSXMA stock.
It's been more than a decade since Buffett first invested in credit card giant Mastercard back in 2011, and the stock is up roughly 1,540% in that time. Bank of America analyst Jason Kupferberg says the potential for re-accelerating U.S. economic growth and a rebound in travel and consumer spending in 2021 is not fully reflected in Mastercard's share price. Berkshire holds 4.56 million shares of Mastercard that are worth about $1.7 billion. Mastercard has a composite analyst rating of 1.8. Bank of America has a "buy" rating and a $445 price target for MA stock.
General Motors Co. (GM)
Electric vehicle stocks have been all the rage on Wall Street in the past couple of years, but trendy growth stocks have never been Buffett's cup of tea. Instead, profitable growth stocks like auto giant General Motors are right up Buffett's alley. Bank of America analyst John Murphy says GM is among the leaders in the global auto industry's transition to next-generation electric and autonomous technology. GM plans to roll out 30 EV models globally by 2025. GM has a composite analyst rating of 1.8. Bank of America has a "buy" rating and an $80 price target for GM stock.
Mondelez International (MDLZ)
Mondelez is one of the world's largest snack food companies and the owner of popular brands such as Cadbury, Oreo and Trident gum. Mondelez was spun off from Kraft back in 2012. Today, Buffett still holds a large position in Kraft Heinz Co. (KHC), and Berkshire holds 578,000 shares of Mondelez worth about $36.4 million. Bank of America analyst Bryan Spillane says a combination of organic growth, share buybacks and dividend hikes makes Mondelez a great investment. Mondelez has a composite analyst rating of 1.8. Bank of America has a "buy" rating and a $65 price target for MDLZ stock.
Payments company Visa is another stock that both Buffett and Wall Street analysts love. Buffett took a huge stake in Visa back in 2011, just two quarters after buying Mastercard for the first time. Since Buffett first invested, Visa shares are up about 960%. CFRA Research analyst Chris Kuiper says Visa is undervalued given massive growth opportunities in digital and mobile payments in coming years. Today, Berkshire holds nearly 10 million shares of Visa stock worth about $2.31 billion. Visa has a composite analyst rating of 1.8. CFRA has a "buy" rating and a $250 price target for V stock.
T-Mobile US (TMUS)
U.S. wireless provider T-Mobile was one of Berkshire's highest-profile buys of 2020. At first glance, T-Mobile shares aren't valued as cheaply as Verizon Communications (VZ) or AT&T (T) based on earnings, and T-Mobile doesn't pay a dividend. But CFRA analyst Keith Snyder says T-Mobile should outgrow competitors following its Sprint acquisition, and he projects 16.8% revenue growth in 2021. Berkshire holds 5.24 million T-Mobile shares worth about $760 million. T-Mobile has a composite analyst rating of 1.9. CFRA has a "strong-buy" rating and a $160 price target for TMUS stock.
Johnson & Johnson (JNJ)
Berkshire's stake in global pharmaceutical giant Johnson & Johnson peaked at 64.3 million shares back in 2007, and the stock is up nearly 300% since that time. Buffett dumped the majority of his holdings back in 2012, but Berkshire still holds about 327,000 shares worth roughly $54 million. CFRA analyst Sel Hardy says a recovery in elective medical procedures in 2021 should provide a tailwind for Johnson & Johnson's medical device segment. Johnson & Johnson has a composite analyst rating of 1.9. CFRA has a "buy" rating and a $182 price target for JNJ stock.
Warren Buffett stocks that analysts love:
— Amazon.com (AMZN)
— Liberty SiriusXM Group Series A (LSXMA)
— Mastercard (MA)
— General Motors Co. (GM)
— Mondelez International (MDLZ)
— Visa (V)
— T-Mobile US (TMUS)
— Johnson & Johnson (JNJ)