3 Bargain Buffett Stocks to Buy Before They Rebound

Stocks to buy

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)

Source: Sundry Photography / Shutterstock

Snowflake (NYSE:SNOW) is getting hammered as I write this. In fact, the stock is experiencing its worst day in its history.

The company is dealing with difficulties on multiple fronts and the markets are responding in kind. that resulted in shares dropping by 19% on the day. One reason for the terrible performance is that CEO Frank Slootman announced he will retire. He will be replaced by a former Google (NASDAQ:GOOGL, NASDAQ:GOOG) ad chief Sridhar Ramaswamy.

Additionally, sales guidance from the company was slightly below what analysts had been expecting. Operating margin guidance of 3% was well below the 7.2% analysts have been expecting. Broadly speaking, the news was negatively received yet some pundits perceive the news as a net positive. Macquarie Equity Research upgraded its target price from $182 to $205. 

The average buying price of a Warren Buffett is just above $238. This looks like a good entry point from a contrarian perspective. Remember, snowflake is a growth stock at heart and once rate cuts are enacted it should jump higher again. Revenues grew by 33% during Q4

Apple (AAPL)

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Apple (NASDAQ:AAPL) is the most important of all Warren Buffett stocks. It represents 47.5% of his overall holdings. It’s also down over the last few weeks having fallen from $195 to $181 at present. That makes it a potential rebound stock and generally speaking, investing in Apple when it falls is a good idea.

It’s no secret that many of the other leading Silicon Valley firms have better invested in artificial intelligence than Apple. Nvidia (NASDAQ:NVDA), Microsoft (NASDAQ:MSFT) and Google all fit within that category.

The result is that shares are trading at levels last seen in early November. Apple also announced that it is winding down the apple car project, long expected to boost the firm. I personally think it’s a good decision but that’s not particularly important.

What is important is that Apple is currently expected to make major AI announcements in June. The money from the shuttered Apple Car Projects can now be directed into AI. That’s a big bonus. I think it’s a great time to be investing in AAPL.

Occidental Petroleum (OXY)

Source: IgorGolovniov / Shutterstock.com

Warren Buffett recently increased his stake in Occidental Petroleum (NYSE:OXY) by 1.8%. That should be a good enough reason for investors to consider it as well. Buffet has been investing in the oil company for the last few years.

Generally speaking, anytime Buffett invests in an oil company it’s a reasonable signal that he believes the price of crude oil will rise. Yet, that isn’t the only reason Buffett likes Occidental Petroleum.The company generates the majority of its revenues from drilling operations. It also operates chemical plants and refineries. In short, its integrated structure allows it to benefit more substantially when the spot price of oil rises.

Beyond that, there are a few reasons that the general investor should also consider Occidental Petroleum. Shares currently trade for $60, which is the low target price assigned to its shares by analysts. The consensus view is that shares should move nearer to $68. In addition, Occidental Petroleum includes a dividend which will increase any returns by an additional 88 cents.

On the date of publication, Alex Sirois 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.

Alex Sirois is a freelance contributor to InvestorPlace whose personal stock investing style is focused on long-term, buy-and-hold, wealth-building stock picks. Having worked in several industries from e-commerce to translation to education and utilizing his MBA from George Washington University, he brings a diverse set of skills through which he filters his writing.

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