Warren Buffett is the Chairman and CEO of Berkshire Hathaway (BRK.A) (BRK.B), a multinational holding company. Berkshire Hathaway owns nearly 53 companies, primarily blue-chip companies with strong balance sheets, attractive valuations, and…
solid growth prospects. Buffett’s portfolio is diversified across the information technology, financial services, consumer staples, and energy sectors.
Warren Buffett’s portfolio has been an investment guide for many investors for decades due to his impressive track record. Berkshire Hathaway’s portfolio value increased from $331 billion to $364 billion by the end of the first quarter.
So, we think it could be wise to invest in Warren Buffett stocks Occidental Petroleum Corporation (OXY), Celanese Corporation (CE), and McKesson Corporation (MCK), given their solid growth potential. These stocks are rated Strong Buy or Buy in our proprietary POWR Ratings system.
Occidental Petroleum Corporation (OXY)
OXY engages in the acquisition, exploration, and development of oil and gas properties in the United States, the Middle East, Africa, and Latin America. The company operates through three segments: Oil and Gas; Chemical; and Midstream and Marketing. Warren Buffett recently purchased another 794,389 shares of OXY, bringing his stake in the company to 16.4%.
In the fiscal 2022 first quarter ended March 31, 2022, OXY’s net sales increased 55.7% year-over-year to $8.53 billion. Its income from continuing operations grew 1,530.8% year-over-year to $4.88 billion.
The company’s adjusted income attributable to common stockholders and adjusted earnings per common share came in at $2.13 billion and $2.12, up 1,664% and 1,513.3%, respectively, from the prior-year period.
The $8.91 billion consensus revenue estimate for the fiscal 2022 second quarter, ending June 2022, represents a 48.2% improvement from the same period in 2021. Analysts expect OXY’s EPS for the current quarter to increase 813.3% year-over-year to $2.92. The company has surpassed the consensus revenue, and the EPS estimates in each of the trailing four quarters.
OXY’s shares have gained 103.9% year-to-date to close the last trading session at $59.10.
OXY’s POWR Ratings reflect this promising outlook. The stock has an overall B rating, which translates to Buy in our proprietary rating system. The POWR Ratings assess stocks by 118 different factors, each with its own weighting.
OXY has a grade of A for Momentum and B for Growth and Quality. Within the B-rated Energy – Oil & Gas industry, it is ranked #28 of 98 stocks. To see additional POWR Ratings (Sentiment, Stability, and Value) for OXY, click here.
Celanese Corporation (CE)
CE is a technology and specialty materials company. It manufactures and sells high-performance engineered polymers in the United States and internationally. The company operates through three segments: Engineered Materials; Acetate Tow; and Acetyl Chain. Buffett’s Berkshire Hathaway owns a 0.3% stake in the company.
On May 25, CE announced an increase in the selling prices of acetyl intermediate products, including acetic acid, vinyl acetate monomer, VAE emulsions, and acetic anhydride. The price increase is expected to boost the company’s profit margins and revenues.
In February, CE signed a definitive agreement to acquire DuPont’s Mobility & Materials business for $11 billion in cash. Celanese will gain a broad portfolio of engineered thermoplastics and elastomers, industry-renowned brands and intellectual property, a world-class organization, and global production assets.
“M&M will be a high-quality addition to Engineered Materials (EM) and will unlock significant opportunities to generate further customer and shareholder value. We are eager to welcome the M&M team to Celanese and jointly elevate the future growth and cash generation of the combined Celanese portfolio,” said Lori Ryerkerk, CE’s Chairman and CEO.
CE’s net sales increased 41.2% year-over-year to $2.54 billion in the fiscal 2022 first quarter, ended March 31, 2022. Its operating profit stood at $531 million, up 62.9% year-over-year. Its adjusted EBIT rose 47.9% from the year-ago value to $713 million.
The company’s net earnings and adjusted EPS came in at $504 million and $5.54, registering increases of 56% and 60.1%, respectively, year-over-year.
The consensus revenue estimate of $2.40 billion for the fiscal 2022 second quarter, ending June 2022, represents an increase of 9.2% from the prior-year period. The company has topped the consensus revenue estimates in each of the trailing four quarters, and the consensus EPS estimates in three of the trailing four quarters, which is impressive.
The stock has declined 18.2% over the past three months and closed the last trading session at $119.73.
CE’s POWR Ratings reflect this strong outlook. It has an overall grade of B, equating to Buy in our proprietary rating system. CE also has a grade of B for Quality. Within the A-rated Chemicals industry, it is ranked #38 of 91 stocks.
To see additional POWR Ratings (Sentiment, Growth, Value, Momentum, and Stability) for CE, click here.
McKesson Corporation (MCK)
MCK offers healthcare services in the United States and internationally. The company operates through four segments: U.S. Pharmaceutical; International; Medical-Surgical Solutions; and…
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