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Zacks Value Trader Highlights: RH, Occidental Petroleum, Suncor Energy, Phillips 66 and Restaurant Brands
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For Immediate Release
Chicago, IL – November 22, 2019 – Zacks Value Trader is a podcast hosted weekly by Zacks Stock Strategist Tracey Ryniec. Every week, Tracey will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life. To listen to the podcast, click here:
Buffett’s Buying Energy & Retail; Should You?
Welcome to Episode #166 of the Value Investor Podcast.
Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio, shares some of her top value investing tips and stock picks.
The latest 13F filings are out. For value investors, that means getting a peak at what Warren Buffett’s Berkshire Hathaway is buying and selling.
The third quarter filing was a bit disappointing on first glance.
Berkshire only bought two new positions: RH (RH - Free Report) and Occidental Petroleum (OXY - Free Report) . They were both small positions, with a $206 million buy in RH and a $330 million position in Occidental.
Berkshire also has a position, of sorts, in Occidental. It bought $10 billion in preferred stock to help fund the Anadarko acquisition. That pays a dividend of 8%. Berkshire also gets warrants on 80 million shares for $62.50.
Buy the Worst Industries
Both of these two new acquisitions were in beaten down industries.
In the case of energy, most investors have fled after years of falling earnings and fears of falling demand due to a global recession.
Retail has been in the doghouse for nearly 3 years.
But good value investors dive in when everyone else is fleeing.
Should you do it?
Berkshire Owns Other Energy and Consumer Discretionary Stocks
1. Suncor Energy (SU - Free Report) was added to the portfolio in the fourth quarter of 2018. It’s a Canadian oil sands producer. Shares are still cheap, with a forward P/E of 12.6. The company pays a dividend, currently yielding 4% and recently increased its share repurchase program by $500 million.
2. Phillips 66 (PSX - Free Report) is a refiner. Berkshire has owned shares since the second quarter of 2012. And while it sold a small portion of the position in the third quarter of this year, the shares are still cheap. It trades with a forward P/E of 13.5.
3. Restaurant Brands (QSR - Free Report) was added to Berkshire’s portfolio in the fourth quarter of 2014. It bought well before the Popeye chicken sandwich or the Burger King Impossible Whopper became cultural phenomena. The shares are much more expensive now, with a forward P/E of 24.5.
What else should you know about Warren Buffett’s recent stock buys?
Listen to this week’s podcast to find out.
[In full disclosure, the author of this article owns shares of RH in her personal portfolio.]
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Zacks Value Trader Highlights: RH, Occidental Petroleum, Suncor Energy, Phillips 66 and Restaurant Brands
For Immediate Release
Chicago, IL – November 22, 2019 – Zacks Value Trader is a podcast hosted weekly by Zacks Stock Strategist Tracey Ryniec. Every week, Tracey will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life. To listen to the podcast, click here:
Buffett’s Buying Energy & Retail; Should You?
Welcome to Episode #166 of the Value Investor Podcast.
Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio, shares some of her top value investing tips and stock picks.
The latest 13F filings are out. For value investors, that means getting a peak at what Warren Buffett’s Berkshire Hathaway is buying and selling.
The third quarter filing was a bit disappointing on first glance.
Berkshire only bought two new positions: RH (RH - Free Report) and Occidental Petroleum (OXY - Free Report) . They were both small positions, with a $206 million buy in RH and a $330 million position in Occidental.
Berkshire also has a position, of sorts, in Occidental. It bought $10 billion in preferred stock to help fund the Anadarko acquisition. That pays a dividend of 8%. Berkshire also gets warrants on 80 million shares for $62.50.
Buy the Worst Industries
Both of these two new acquisitions were in beaten down industries.
In the case of energy, most investors have fled after years of falling earnings and fears of falling demand due to a global recession.
Retail has been in the doghouse for nearly 3 years.
But good value investors dive in when everyone else is fleeing.
Should you do it?
Berkshire Owns Other Energy and Consumer Discretionary Stocks
1. Suncor Energy (SU - Free Report) was added to the portfolio in the fourth quarter of 2018. It’s a Canadian oil sands producer. Shares are still cheap, with a forward P/E of 12.6. The company pays a dividend, currently yielding 4% and recently increased its share repurchase program by $500 million.
2. Phillips 66 (PSX - Free Report) is a refiner. Berkshire has owned shares since the second quarter of 2012. And while it sold a small portion of the position in the third quarter of this year, the shares are still cheap. It trades with a forward P/E of 13.5.
3. Restaurant Brands (QSR - Free Report) was added to Berkshire’s portfolio in the fourth quarter of 2014. It bought well before the Popeye chicken sandwich or the Burger King Impossible Whopper became cultural phenomena. The shares are much more expensive now, with a forward P/E of 24.5.
What else should you know about Warren Buffett’s recent stock buys?
Listen to this week’s podcast to find out.
[In full disclosure, the author of this article owns shares of RH in her personal portfolio.]
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.