The 3 Most Undervalued Warren Buffett Stocks to Buy in April 2024

Stocks to buy

Dipping your toes in the stock market with your own strategies can be overwhelming. That’s why it’s best to follow a seasoned investor like Warren Buffet, who has a history of sustainable success in the game. Consequently, investing in the most undervalued Warren Buffett stocks to buy in April will always be relevant.

The Oracle of Omaha boasts an enviable track record of finding undervalued long-term stock market bets. Moreover, his experience essentially acts as a compass, navigating investors toward success in bull and bear markets. Additionally, his time and tested strategies offer incredible insights for investors looking to follow in his footsteps. Hence, focusing on undervalued stocks endorsed by Buffett becomes a compelling long-term strategy.

Kroger (KR)

Source: Eric Glenn / Shutterstock.com

The first of Buffet’s undervalued picks is grocery giant Kroger (NYSE:KR). Though it’s not the flashiest of stock pick ideas, it’s proven to be a stable investment. This is shown by its solid stock market gains over the years, delivering almost a 160% 5-year return. Additionally, its year-to-date (YTD) gains of roughly 25% have comfortably outpaced the S&P 500’s 10% gain.

Market analysts have been butting their heads at the likelihood of Kroger’s merger with Albertsons coming through. However, considering the Federal Trade Commission’s (FTC) lawsuit blocking the transaction, it’s tough to foresee the merger coming to fruition anytime soon. Despite the setback and its mixed fiscal results and guidance for 2024, KR stock is an excellent undervalued pick with a compelling long-term bull case. It trades at just 0.3 times forward sales estimates while yielding a spectacular 2% and a free cash flow base exceeding $3.43 billion.

Berkshire Hathaway (NYSE:BRK-A, NYSE:BRK-Bowns 50 million company shares, representing 0.8% of its total portfolio.

BYD Co. (BYDDF) 

Source: shutterstock.com/Trygve Finkelsen

Chinese EV titan BYD Co. (OTCMKTS:BYDDF) turned heads last year after it sped past Tesla (NASDAQ:TSLA) in overall EV sales during the fourth quarter (Q4). Now the largest electric car maker in the world, BYD has the impetus to continue pushing forward and setting new records in its competitive niche. 

It wrapped up Q4 with 526,409 EV deliveries, delivering almost 42,000 more cars than Tesla. 

Additionally, net profit jumped 81% for BYD in 2023, with its sales volume rising 62% to a record 3.02 million vehicles. As we advance, the company has even more ambitious plans, expecting to sell 3.6 million cars this year, a 20% bump from last year’s haul. Considering its January sales rose 48% year-over-year (YOY), it isn’t hard to see its targets materializing again. What’s extraordinary is that it is posting these lofty numbers despite operating in a relatively sluggish EV market at this time. 

Despite its stellar past year, BYDDF stock still trades under 0.8 times forward sales estimates. It also occupies a 0.6% stake in Berkshire’s portfolio, with the firm owning 87.6 million of its shares.

The Liberty SiriusXM Group (LSXMK)

Source: Shutterstock

The much-talked-about merger between The Liberty SiriusXM Group (NASDAQ:LSXMK) and Sirius XM was finally announced late last year. Speculation regarding the merger has been swirling for quite some time, but both entities are now going all-in to create a new-look satellite radio titan.  

The combined business is set to unlock massive long-term value for shareholders, resulting in greater market reach, streamlined operations, and more robust free cash flow prospects. Moreover, given its gains in the past six months, the market is buying the narrative. The merger involves minimal risks, positioning the new and improved SiriusXM for sustainable long-term expansion ahead.

Given its compelling long-term trajectory, Berkshire Hathaway recently added 2.52 million shares of LSXMA to its portfolio, boosting its stake to 32.75 million. This represents a 10% ownership in the company and a 0.27% portfolio position.

On the date of publication, Muslim Farooque 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

Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor’s of science degree in applied accounting from Oxford Brookes University.

Articles You May Like

Why Investors Should Avoid Nio Stock at All Costs in 2024
3 Retail Stocks to Buy Now: Q2 Edition
Top Wall Street analysts like these 3 stocks for their growth prospects
3 Internet Provider Stocks to Dump as Affordability Crisis Looms
3 Water Stocks to Buy Now: Q2 Edition