Wall Street Predicts These 3 Warren Buffett Stocks Will Soar 88% to 242%


  • Warren Buffett is a living legend for good reason and Wall Street thinks some of his stock picks are about to step on the accelerator.
  • United Parcel Service (UPS): The package delivery company has been a stable, if slow-growing performer for Buffett.
  • Bank of America (BAC): This is Buffett’s favorite bank and one he’s held tightly to even as he dumped other bank stocks.
  • Paramount Global (PARA): The movie and entertainment studio has not been a favorite holding, but it’s one analysts see growing the most.
Warren Buffett stocks - Wall Street Predicts These 3 Warren Buffett Stocks Will Soar 88% to 242%

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Warren Buffett is undeniably the greatest living investor. Since becoming chairman of Berkshire Hathaway (NYSE:BRK-A)(NYSE:BRK-B) in 1965, he generated returns of 3.7 million percent for investors. That’s a near 20% annual return or twice that of the S&P 500 index.

While partially a result of his buy-and-hold philosophy, the best Warren Buffett stocks are those with a simple, consumer-facing business that he bought at a good price. Allowing management do its thing and letting his winners run, the investing genius amassed a fortune for himself and his followers.

That doesn’t mean sometimes his stocks don’t do poorly. But Buffett’s overarching themes for investing remain in place, and sometimes his stocks go on sale. It means patient investors can sometimes buy the same stocks as Buffett at prices even better than what he paid. And right now Wall Street says some of them are poised for liftoff.

The following three stocks are forecast by analysts to grow between 88% and 242% over the next year. While you can ride the coattails on these Warren Buffett stocks to profit, do your due diligence anyway. Even the Oracle of Omaha says he’s made mistakes with stocks he bought.

United Parcel Services (UPS)

United Parcel Service (UPS) truck on Interstate in the American West. UPS stock.
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Package delivery giant United Parcel Service (NYSE:UPS) has been a part of Buffett’s portfolio since 2006. He paid on average around $75 per share. UPS never split its stock, but it has paid a dividend ever since going public. The carrier also increased the payout for 14 straight years. It currently yields 4.6% annually.

The stock was never a large holding in Berkshire Hathaway’s portfolio. At its peak, he owned about 1.4 million shares. Today, though, Buffett only holds 59,400 shares. At the current price of $140 per share, that values his stake at $8.4 million. Not too shabby for mere mortals, but for Buffett it’s a paltry sum. UPS is the smallest position in the Berkshire portfolio.

While you won’t be buying the stock at less than what Buffett did, it’s still worth considering. Wall Street has a high-end target price of $265 per share, which implies there is 88% upside in its stock over the next year.

UPS business is a solid, steady grower. Although it often lagged behind the benchmark index, it still generated a 9% total return over the past 15 years. The stock dropped recently on a lower revenue outlook ahead of the peak holiday season, but that puts UPS at one of its lowest valuations in over a decade. It goes for 14 times trailing and estimated earnings while the dividend yield is at its highest point, save for during the pandemic. 

Don’t expect UPS stock to become a rocket, but for a “steady Eddie” stock for your portfolio, the package delivery expert will perform admirably over time. 

Bank of America (BAC)

The logo of Bank of America (BAC) in modern office building in Beverly Hills, California
Source: Tero Vesalainen/Shutterstock

Going from least to most, Bank of America (NYSE:BAC) is the biggest stock holding in Buffett’s portfolio on a shares-owned basis. Berkshire Hathaway owns over 1 billion shares of the bank, putting its valuation at $27.2 billion. That’s second only to Apple (NASDAQ:AAPL).

The stock is down 20% year-to-date after investor confidence in the banking system was shaken following the collapse of several high-profile financial institutions earlier this year. However, Buffett never wavered on Bank of America. Even as he sold off other financial stocks, he held firm with this bank.

After excoriating the way most banks operate, Buffett told shareholders he remained cautious about owning bank stocks, but “we do remain with one bank…I like Bank of America and I like the management.”

Wall Street is just as confident in its future. Analysts see as much as 108% upside in the stock with a high-end price target of $55 per share. There’s good reason for the exuberance. Although high interest rates are weighing heavily on consumers, Bank of America exceeded earnings and revenue estimates due to increased interest income as a result of higher borrowing costs. More consumers are using their credit cards, lifting average loan and lease balances. It’s an indictment of current economic conditions, but a silver lining of sorts for investors.

Bank of America is trading at severely discounted valuations, including at just a fraction of its book value. The market still views its earnings growth suspiciously, but that will turn eventually. Buying now will reward you handsomely later on.

Paramount Global (PARA)

PARA stock: the Paramount plus logo on a phone in front of a screen displaying various Paramount TV shows and movies
Source: viewimage / Shutterstock

Admittedly Paramount Global (NASDAQ:PARA) isn’t a stock Buffett has expressed the greatest confidence in. He told CNBC, “It isn’t fundamentally that good of a business.” He said the movie studio’s decision to slash its dividend was “not good news.” And he’s worried about Paramount’s future in the streaming business because higher prices are needed but that’s incompatible with retaining viewers.

Still, Buffett maintains a significant holding of Paramount stock, some 93.7 million shares worth over $1 billion. It’s equivalent to a 15% stake in the entertainment company. Analysts are especially exuberant about where its price can go. They have a $37 per share high-side price target on the stock, which means Wall Street expects to see shares nearly quadruple in value.

The stock trades at less than 10 times earnings estimates and a miniscule fraction of its sales. Still it’s a tough business that will likely see more fallout from providers. The ongoing Hollywood strike isn’t helping business and theaters are ailing. Although Buffett owns a good chunk of the company and Wall Street seems enamored with the stock, Paramount Global isn’t one that I’d be rushing to buy.

On the date of publication, Rich Duprey did not hold (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.

Rich Duprey has written about stocks and investing for the past 20 years. His articles have appeared on Nasdaq.com, The Motley Fool, and Yahoo! Finance, and he has been referenced by U.S. and international publications, including MarketWatch, Financial Times, Forbes, Fast Company, USA Today, Milwaukee Journal Sentinel, Cheddar News, The Boston Globe, L’Express, and numerous other news outlets.

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