Warren Buffett is widely considered to be the greatest investor of all time. The man has amassed an incredible Fortune from the stock market. Yet he is not infallible, nor does every trade that he makes win. Indeed, if you know where to look there are several bargain Buffett stocks to buy.
A look at his current portfolio indicates as much. There are multiple positions which, if sold today, would result in substantial losses. Given that Warren Buffett himself has purchased these stocks at higher prices there is reason to believe that they hold substantial rebound potential.
Beyond that, market dynamics could very easily shift in favor of all of the stocks below. Remember, Warren Buffett broadly invests in the strength of the U.S. economy as a guiding force. There are multiple reasons to believe that the economy could improve from here which would propel those shares higher. Bearing all of that in mind, let’s take a look at these bargain Buffett stocks to buy.
Snowflake (SNOW)
Snowflake (NYSE: SNOW) is currently facing significant challenges, leading to its worst day in history with a 19% drop in share price. One contributing factor to this decline is the announcement of CEO Frank Slootman’s retirement, with former Google ad chief Sridhar Ramaswamy set to take his place. Additionally, the company’s sales guidance fell slightly below analyst expectations, with operating margin guidance at 3%, considerably lower than the anticipated 7.2%.
While this news was generally perceived negatively, some analysts see it as a potential positive. Macquarie Equity Research, for instance, upgraded its target price from $182 to $205. Warren Buffett’s average buying price for Snowflake is just above $238, suggesting that the current dip could present a buying opportunity from a contrarian standpoint. It’s worth noting that Snowflake is fundamentally a growth stock, and with potential future rate cuts, it may see an upward trajectory once again. In Q4, the company experienced a revenue growth of 33%.
Apple (AAPL)
Apple (NASDAQ: AAPL) holds a significant position in Warren Buffett’s portfolio, representing 47.5% of his overall holdings. Despite experiencing a decline over the past few weeks, falling from $195 to $181, Apple remains a potential rebound stock. Historically, investing in Apple during downturns has been a wise decision.
Compared to other leading Silicon Valley firms, Apple has lagged behind in artificial intelligence investment, with companies like Nvidia (NASDAQ: NVDA), Microsoft (NASDAQ: MSFT), and Google leading in this area. This disparity has contributed to Apple’s stock trading at levels last seen in early November. Additionally, Apple recently announced the winding down of its Apple Car project, which was expected to bolster the company’s growth.
However, the focus has shifted towards major AI announcements expected from Apple in June. With resources now freed up from the discontinued car project, Apple can allocate more towards AI development. This presents a significant opportunity for the company. Overall, considering these factors, investing in AAPL at this juncture seems promising.
Occidental Petroleum (OXY)
Warren Buffett’s recent increase in stake in Occidental Petroleum (NYSE: OXY) by 1.8% may serve as a compelling reason for investors to consider the company. Buffett has been investing in the oil company for the past few years, indicating a positive outlook on its prospects.
Typically, when Buffett invests in an oil company, it signals his belief in a potential rise in crude oil prices. However, Occidental Petroleum offers additional appeal beyond this factor. The company derives the majority of its revenues from drilling operations and also operates chemical plants and refineries. This integrated structure positions it to benefit more substantially from increases in the spot price of oil.
Moreover, there are several reasons why general investors should also consider Occidental Petroleum. With shares currently trading at $60, which is at the lower end of analysts’ target price range, there is potential for upward movement towards the consensus target of $68. Additionally, Occidental Petroleum offers a dividend, providing an additional return of 88 cents to investors.