Ahead of potentially troubled waters, investors ought to consider the wisdom – and the great bargain – behind undervalued Warren Buffett stocks. Now’s also a good time to consider aligning with the Oracle of Omaha, as the underlying Berkshire Hathaway (NYSE:BRK-B) conglomerate recently updated its holdings via a 13F filing, per CNBC.

Primarily, what investors appreciate about undervalued Warren Buffett stocks is the implied holistic guidance. When it comes to the Oracle, we’re not just dealing with a stock picker who calls out good ideas in a bull market. Frankly, anybody can do that. Rather, the real money is earned by both navigating bearish cycles and most importantly, judiciously picking out the true winners.

And let’s face it – the prospect of a recession is a non-zero-probability event. Look, if it were not so, big-box retailer Walmart (NYSE:WMT) wouldn’t sound the alarm about a possibly downcast holiday shopping season. On that note, below are undervalued Warren Buffett stocks to consider.

Undervalued Warren Buffett Stocks: HP (HPQ)

While perhaps not the most confidence-inspiring name among undervalued Warren Buffett stocks, HP (NYSE:HPQ) is certainly trading for a relative bargain. Per investment data aggregator Gurufocus, the market prices HPQ at a trailing earnings multiple of 12.17x. What’s more, HPQ also trades at a forward earnings multiple of 8.12X. For the latter stat, that’s lower than 87% of its peers.

Of course, the question stands: is this a legitimate discount or a possible value trap? Frankly, we’ll find out more on Nov. 21 when the company releases its fiscal fourth-quarter earnings report. However, the Oracle may be onto something here. Specifically, in fiscal Q3, HP posted a gross margin of 21.39%, above the year-ago quarter’s metric of 19.78%.

Stated differently, the company so far doesn’t have to price down its products to attract customers. Further, computer products – while carrying a discretionary component – are very much critical in our advanced economy. So, if it’s good enough for the Oracle, it might be good enough for you.

Kraft Heinz (KHC)

More of a traditional idea for undervalued Warren Buffett stocks, Kraft Heinz (NASDAQ:KHC) should attract more mainstream interest. As mentioned up top, Walmart issued a warning about reduced consumer sentiment for the holiday season. That implies far less interest in frivolous discretionary items and services. Instead, consumers will likely be forced to consider core needs.

Now, I’m not going to state that Kraft Heinz is a core consumer brand because it does have competitors. Still, it should broadly benefit from the trade-down effect from the discretionary space. And because of this anticipated tailwind, I believe we have a legitimate candidate for undervalued Warren Buffett stocks. Right now, shares trade hands at 13.97x trailing earnings, below the sector median 19.06x.

IN addition, the market prices KHC at 11.34x forward earnings. Yeah, some of the other stats aren’t exactly pretty. However, the company’s revenue stream is consistent and predictable, just as you’d imagine. Also, aside from a blip in 2018, it’s always profitable.

Kroger (KR)

When discussing Kroger (NYSE:KR) as one of the undervalued Warren Buffett stocks to buy, the same points about Kraft Heinz apply. In my opinion, they might apply even more so with Kroger. If forced to choose between the two entities, I’d put my money in KR. To be sure, the Oracle doesn’t agree because we’re talking about a Berkshire holding difference between 3.1% versus 0.6% of the portfolio.

I don’t care. When you’re dealing with Kraft Heinz, you’re focused on a specific brand. It’s a great brand, don’t get me wrong. However, with Kroger, you’re selling tickets to the game rather than guessing which team will win. Ahead of a possible downturn in the market, I’d be more comfortable painting with the benefit of a wide canvas.

As for the discount, KR trades at a forward earnings multiple of 9.53x. That’s well lower than the sector median metric of 14.29x. Finally, the company enjoys consistent revenue that should get stronger next year due to the trade-down effect.

On the date of publication, Josh Enomoto 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.