U.S. equities are drifting higher again on Wednesday, notching fresh new highs as the “Trumpflation” rally looks all but unstoppable. Yet breadth remains mixed, with pockets of strength in financials and Big Tech stocks, but areas of weakness including energy and utilities.
For the first time in years, it’s a stock picker’s market as cross asset correlations diminish and stocks stop rising and falling in unison — based, as it was, largely on what the Federal Reserve was doing — and instead shifting based on the individual dynamics of each industry and sector group. In the lingo of the trade: We’re seeing a return of investing based on idiosyncratic catalysts instead of “macro” investing.
For those looking for new trading ideas, the latest batch of 13F filings reveals what moves hedge funds are making (with a 45-day delay since the end of the last quarter).
Superficially, let’s take a look at what Warren Buffett’s Berkshire Hathaway Inc. (NYSE:BRK.A, NYSE:BRK.B) has been up to:
Warren Buffett Stocks: Southwest Airlines (LUV)
Position: New Buy
Southwest Airlines Co (NYSE:LUV) shares are launching to fresh highs on Wednesday thanks to word Buffett is building a stake in the discount air carrier.
The stock is rising up and out of a four-year sideways crawl that’s largely relegated shares to the upper-$40s. On Feb. 8, the company reported that it flew 9.4 billion revenue passenger miles in January, a 4.6% increase.
The company will next report results on April 27 before the bell. Analysts are looking for earnings of 71 cents per share on revenues of $5.01 billion.
Warren Buffett Stocks: Monsanto (MON)
Position: New Buy
Monsanto Company (NYSE:MON) shares are rising up and over their 20-day moving average in what appears to be the beginning of a run at the late January high near $111.
Back on Jan. 5, the company reported a top- and bottom-line beat with earnings of 21 cents per share beating estimates by 20 cents. Revenues rose 19.4% from the prior year.
The company will next report results on April 5 before the bell. Analysts are looking for earnings of $2.81 per share on revenues of $4.78 billion.
Warren Buffett Stocks: Sirius XM Holdings (SIRI)
Position: New Buy
Sirius XM Holdings Inc. (NASDAQ:SIRI) is lifting to new highs on Wednesday, extending further out of the multi-year holding pattern that held shares between 2013 and 2016.
Analysts at Telsey Advisory Group raised their price target to $5 back on Feb. 3 on solid prospects, good self-pay user metrics and a larger-than-expected share repurchase program.
The company will next report results on May 4 before the bell. Analysts are looking for earnings of four cents per share on revenues of $1.29 billion.
Warren Buffett Stocks: Deere (DE)
Position: Exited
Deere & Company (NYSE:DE) shares look vulnerable to a pullback here as Buffett trims his stake in the agricultural and mining equipment giant. Shares exploded higher following Trump’s surprise electoral victory — on expectations for increased “hard economic” activity, including mining and drilling.
The rise pushed shares up and out of a resistance level near $90-a-share going all the way back to 2011, resulting in a near 30% rise from its pre-election levels.
The company will next report results on Feb. 17 before the bell. Analysts are looking for earnings of 54 cents per share on revenues of $4.67 billion.
Warren Buffett Stocks: Apple (AAPL)
Position: Boosted
Apple Inc. (NASDAQ:AAPL) has been enjoying a lot of good news lately. Buffett boosted his stake. Company shares have exploded higher to new record highs after reporting a return-to-growth for its iPhone business after a few quarters of declining sales.
And now, anticipation is building for the launch of the all-new iPhone 8 later this year.
The company will next report results on May 2 after the close. Analysts are looking for earnings of $2.01 per share on revenues of $52.85 billion.
Warren Buffett Stocks: Walmart (WMT)
Position: Cut
Wal-Mart Stores Inc (NYSE:WMT) shares are languishing below its 50-day and 200-day moving averages, continuing a pullback that started in August.
Shares have been under some pressure (even before Buffett cut his stake) on fears a possible border adjustment tax from the Trump White House will directly increase the cost of goods sold for retailers reliant on cheap imports from China and elsewhere.
The company will next report results on Feb. 21 before the bell. Analysts are looking for earnings of $1.29 per share on revenues of $131.4 billion.
Warren Buffett Stocks: Verizon (VZ)
Position: Cut
Verizon Communications Inc. (NYSE:VZ) shares are threatening to break down out of their month-long trading range, setting up a decline to the November low near $45.50.
Shares have been hit not only by word of Buffett cutting his stake, but by the fear a price war is coming to the wireless telecom industry after Verizon announced the return of an unlimited data plan.
For years, VZ and AT&T Inc. (NYSE:T) battled over network reliability and quality, avoiding an outright conflict over pricing. But that’s changed. And profitability will likely suffer.
The company will next report results on April 25 before the bell. Analysts are looking for earnings of 99 cents per share on revenues of $30.74 billion.
Anthony Mirhaydari is founder of the Edge and Edge Pro investment advisory newsletters. A two-week and four-week free trial offer has been extended to InvestorPlace readers.
