Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. This strategy seeks out firms with long-term, predictable profitability an
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When Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) CEO Warren Buffett speaks, everyday and professional investors wisely pay attention. Although the Oracle of Omaha, as he's come to be known, isn't infallible, he's crushed the broader market since becoming CEO in 1965. The 3,787,
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After a stock market sell-off last year, the tech industry is on the rise in 2023, alongside innovative developments in consumer tech, artificial intelligence (AI), and more. As a result, the companies leading these sectors make increasingly attractive investments.
Recent advances in artificial intelligence are fueling optimism over how businesses can operate more productively in the years ahead. They are also providing a big boost to the stock market.
Earnings season is in full swing this month with countless stocks on the move. The evolving market has created an exciting time to expand your portfolio by investing in companies with massive potential over the long term.
It's hard to beat Warren Buffett's knack for making money, which is why so many investors keep a sharp eye on the stocks Buffett buys through his holding company, Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B).
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Warren Buffett's stock portfolio is one of the most scrutinized in the world. Each quarter there are several news stories about what the Oracle of Omaha purchased for his company Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B). Interest in this portfolio shouldn't be a surprise, c
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The NASDAQ 100 After Hours Indicator is down -17.36 to 13,786.13. The total After hours volume is currently 76,242,188 shares traded.The following are the most active stocks for the after hours session: Southwestern Energy Company (SWN) is unchanged at $5.36, with 4,264,577 shar
Tech stocks were declining late Friday, with the Technology Select Sector SPDR Fund (XLK) edging down 0.2% and the Philadelphia Semiconductor index slipping 0.7%.
Berkshire Hathaway (
NYSE:BRK.B
) was back to its market-beating ways last year. With another annual shareholders meeting in the books and the latest 13F filing available for the public to see, we all can get an updated view of what stocks the Oracle of Omaha and his team have.
Though there were some intriguing buys and sells for the first quarter, there were no big surprises. As Berkshire continues to play the long game, investors may wish to give the overall portfolio another look.
Therefore, in this piece, we'll use
TipRanks' Comparison Tool to check in with three names in the Berkshire portfolio (one of which saw notable buying activity in the first quarter) that have the confidence of most Wall Street analysts. From largest holding to smallest, here they are.
Apple (
NASDAQ:AAPL)
Berkshire added to its stake in Apple shares yet again in the latest quarter. Undoubtedly, Apple stock has been a major winner year-to-date, with
shares up a whopping 40%. Though it may be a tad too late to ride on Berkshire's coattails after such a sizeable move, I believe Apple is a name worth keeping on one's radar.
Warren Buffett went as far as to refer to Apple as a "better business" than any that Berkshire owns. That's quite a statement from the legendary investor. Though I wish shares were cheaper, I must stay bullish on Apple stock. Anytime you sour on Apple, you could risk being left behind.
Indeed, Buffett sold some shares a few years ago, admitting that it was "probably a mistake." As Apple inches closer to new highs, I view some catalysts that could help propel it to new heights.
Apple's mixed-reality headset could be unveiled during the June 5 special event. VR guru Palmer Luckey, the man who founded the VR company Oculus, stated that Apple's headset "is so good" in one of his tweets. This comes from the same man who was very critical of Meta Platforms' (
NASDAQ:META
) metaverse.
Many companies have fumbled when it comes to VR/AR headsets. The billion-dollar question is whether Apple can triumph where many other influential firms have stumbled. Given Apple's track record, I wouldn't be shocked if its headset soars above and beyond our expectations.
The company is a master when it comes to experiences that require expertise in both hardware and software. With a potential library of VR-tailored iPad apps available for the headset, Apple's headset may be the product that puts the
metaverse trend back ahead of AI.
Further, look for Apple to get its feet wet in the AI waters as it reveals more detail on its latest version of iOS. Apple hasn't talked as much about AI as its FAANG peers. This is okay, as Apple has always been about walking the walk rather than talking the talk. In that regard, I view Apple as a firm that's very much "up to speed" on AI.
The stock trades at 29.3 times trailing price-to-earnings. That's on the high side of its historical range. However, it deserves to be, given the caliber of revolutionary products that may be up ahead.
Whether we're talking about headsets, AI, fintech, entertainment services, or health, Apple has the strength to compete and dominate in every market it chooses to enter. With that in mind, Apple could be the "best" business in your portfolio as well as Berkshire's.
What is the Price Target for AAPL Stock?
Apple stock has a Strong Buy rating, with 23 Buys, four Holds, and one Sell. The
average AAPL stock price target of $182.56 implies 4.1% upside potential.
Coca-Cola (
NYSE:KO)
Coke is another long-time Berkshire staple that also happens to be viewed favorably by Wall Street analysts. The business of sugary sodas is not on the cusp of a revolutionary technological trend that will change how we view the firm. However, it remains a resilient cash-flow generative beast amid turbulent, inflationary, and perhaps soon-to-be recessionary times. With that in mind, I remain bullish on one of Berkshire's oldest (and sweetest) investment holdings.
The Coke brand is worth the higher price of admission. Many decades from now, I still think consumers will reach for Coca-Cola over any new entrants into the cola space. Such brand power deserves a fat premium. With shares going for 28.2 times trailing price-to-earings, a case could be made that the premium isn't high enough given the macro headwinds we could encounter in the second half of 2023, which Coca-Cola should be resistant to.
Indeed, the firm doesn't need to do much to continue raking in the cash flow. Still, management is keen on exploring new initiatives to help give sales a nice jolt. The company is even getting in on the AI game!
Reportedly, Coke is partnering with OpenAI on intriguing initiatives that could help enhance brand affinity further. AI can help Coke in many ways in the future. The possibilities are endless, from AI-assisted marketing to AI-assisted new flavors of Coke. The company knows it needs an "AI strategy," and I do think being early in the AI game could pay dividends.
What is the Price Target for KO Stock?
KO stock comes in as a Strong Buy, with 13 Buys and three Holds. At the time of writing, the
average KO stock price target of $69.44 implies 10.5% upside potential.
T-Mobile (
NASDAQ:TMUS)
Finally, we have telecom firm T-Mobile, which represents a minuscule (around 0.2%) portion of the Berkshire portfolio. Though it's a small holding, I view the business as wonderful. The company has really overpowered its peers in the telecom scene.
With an aggressive expansion plan and a proven strategy, T-Mobile could continue taking market share in the American wireless scene. Indeed, the trend is a friend of TMUS. For that reason, I am bullish.
T-Mobile has no dividend. Unlike its rivals, it's a play on capital appreciation. On that front, T-Mobile stock has not failed to deliver over the years,
surging by nearly 150% over the last five years.
At more than 20 times forward price-to-earnings, TMUS trades at a premium to its top two rivals. However, this premium is well-deserved due to
the company's growth and could expand further as the company continues to spend wisely in its network.
What is the Price Target for TMUS Stock?
T-Mobile is a Strong Buy, with 13 unanimous Buy ratings. The
average TMUS stock price target of $181.42 implies 31.1% upside potential.
Conclusion
All three stocks listed above are attractive in their own way. Of the three Strong-Buy-rated stocks, analysts expect the most upside (31.1%) from T-Mobile stock and the least (4.1%) from Apple.
Disclosure
Tech stocks were lower Friday afternoon, with the Technology Select Sector SPDR Fund (XLK) slightly down and the Philadelphia Semiconductor index falling 0.6%.