Wall Street Favorites: 3 Warren Buffett Stocks With Strong Buy Ratings for May 2024


  • Times of market volatility are a good time to consider Warren Buffett stocks to buy.  
  • Snowflake (SNOW): Analysts theorize that Berkshire’s and Buffett’s interest in Snowflake is as a gateway to artificial intelligence (AI). 
  • Visa (VISA): The payment processor will be a significant part of the transition to a digital, financial future.  
  • Coca-Cola (KO): Coke has been a model of consistency that continues to deliver a solid total return for investors.  
warren buffett stocks to buy - Wall Street Favorites: 3 Warren Buffett Stocks With Strong Buy Ratings for May 2024

The market may be experiencing a shift from growth to value. If so, investors may be considering some Warren Buffett stocks. That is, the stocks that are part of Buffett’s Berkshire-Hathaway (NYSE:BRK-A, NYSE:BRK-B) and reflect his value investing philosophy.  

Buffett’s goal is to find stocks that are undervalued but still have solid fundamentals. Rather than get caught up in the day-to-day machinations of the stock market, Buffett believes that the true value of these stocks will come out over time.  

Berkshire, and therefore Buffet’s, portfolio is made up of diverse, stable and established companies that have a distinct, competitive advantage. Almost all of the stocks in the portfolio pay healthy, growing dividends.  

Stocks like these are frequently ignored during bull markets. Growth-oriented investors look for companies that are aggressively investing profits back into the business. However, when growth stocks are under pressure, the predictability of these companies make them ideal additions to portfolios.  

As the market continues to deal with interest rates that are likely to remain above 5% until at least September, here are three Warren Buffett stocks to buy before kicking back for the summer.  

Snowflake (SNOW) 

Snowflake symbol and logo at the company corporate headquarters in Silicon Valley. SNOW stock.
Source: Sundry Photography / Shutterstock

Who says that you can’t teach an old dog new tricks? At first glance, Snowflake (NYSE:SNOW) doesn’t fit the typical model of a Buffett stock. But the company has owned shares of the company since before its initial public offering (IPO) in 2020. Today, Berkshire Hathaway owns over 6 million shares of the company. 

The speculation is that Buffett owns the company because of its business model that features a cloud-based data platform. Snowflake doesnt directly develop AI applications. But its platform includes Data Cloud, which lets customers consolidate large data sets into a single source of truth. This allows customers to apply AI to solve business problems.  

Snowflake is not consistently profitable, nor does it pay a dividend. However, analysts are bullish on SNOW stock. 27 out of 48 analysts give the stock a Strong Buy rating. And the consensus price target of $206.71 is 31.5% higher than its closing price on May 10, 2024.  

Visa (V) 

several Visa branded credit cards
Source: Kikinunchi / Shutterstock.com

Visa (NYSE:V) is an example of Buffett’s preference to own stocks with a “forever” duration. Berkshire Hathaway has owned shares of Visa since 1963. Today, the hedge fund’s stake in V stock is up to 8.3 million shares valued at approximately $2.26 billion.  

Buffett’s commitment to Visa as well as its largest competitor, Mastercard (NYSE:MA) highlights his belief that the company will continue to be relevant even as the future of money becomes increasingly digital. To begin with, Visa already has its fingerprints into digital technology. And it has a healthy cash balance that it can put to work to acquire the technology and/or businesses it needs. 

Visa does pay a dividend of $2.08 per share annually and has been growing at an average rate of 15.3% for the last three years. The company has also increased its dividend for 16 consecutive years.  

Coca-Cola (KO) 

coca-cola bottles and cans. coke is a blue-chip stocks
Source: Fotazdymak / Shutterstock.com

Coca-Cola (NYSE:KO) is another one of Buffett’s forever stocks. Berkshire Hathaway has owned KO stock since 1988. Today, it holds approximately 400 million shares valued at $23 billion.  

The consumer staples stock has been a model of consistency with share price appreciation of 31.2% in the last five years. Analysts expect the company to deliver stock price growth of over 7% in the next 12 months. And 15 out of 27 analysts give the stock a Strong Buy rating. Coca-Cola is also a Dividend King that has increased its dividend for 63 consecutive years with a yield of 3.07%. 

And despite what were supposed to be difficult comparisons to 2022 based on high interest rates, the company managed to deliver revenue and earnings that were higher year over year. That showcases the company’s pricing power which continued into the first quarter. Coca-Cola increased prices by 13%. However, it grew unit case volumes by 1%.  

On the date of publication, Chris Markoch 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

Chris Markoch is a freelance financial copywriter who has been covering the market for over five years. He has been writing for InvestorPlace since 2019.

Article printed from InvestorPlace Media, https://investorplace.com/2024/05/3-warren-buffett-stocks-to-buy-that-get-a-strong-buy-rating/.

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