We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Warren Buffett, commonly referred to as the Oracle of Omaha, comes to many peoples’ minds when thinking of the financial world. He’s a widely-followed individual in the realm, and his track record of excellence within the market is precisely why.
Of course, investors keep close tabs on every move he makes. And in 2022, he’s been on the offensive, obviously seeing opportunities in an otherwise dim market.
Three companies that have seen buying activity from the Oracle of Omaha include Apple (AAPL - Free Report) , Occidental Petroleum (OXY - Free Report) , and McKesson (MCK - Free Report) .
Below is a chart illustrating the share performance of all three companies with the S&P 500 blended in as a benchmark.
Image Source: Zacks Investment Research
Let’s take a deeper dive into each company.
Occidental Petroleum
One of Buffett’s most famous buys of 2022, Occidental Petroleum (OXY - Free Report) , is an integrated oil and gas company with significant exploration and production exposure. OXY is a Zacks Rank #3 (Hold) with an overall VGM Score of an A.
As expected, analysts have been bullish across all timeframes over the last 60 days, with earnings estimates rising substantially.
Image Source: Zacks Investment Research
OXY’s bottom-line is projected to skyrocket; the Zacks Consensus EPS Estimate for the company’s current fiscal year (FY22) sits at $11.00, penciling in a massive 330% Y/Y uptick.
Image Source: Zacks Investment Research
In addition, OXY has picked up strong momentum as of late, surpassing both bottom and top-line estimates in each of its previous four quarters. Below is a chart illustrating the company’s revenue on a quarterly basis.
Image Source: Zacks Investment Research
McKesson
Located in Texas, McKesson (MCK - Free Report) is a healthcare services and information technology company operating through two segments: Distribution Solutions and Technology Solutions. MCK is a Zacks Rank #2 (Buy) with an overall VGM Score of a B.
Similar to OXY, analysts have been bullish in their earnings outlook over the last several months, raising estimates significantly.
Image Source: Zacks Investment Research
McKesson has been on a blazing earnings streak – the company has impressively exceeded revenue and earnings estimates in nine of its previous ten prints. Just in its latest release, MCK penciled in a 10% bottom-line beat and a 5% revenue beat.
Image Source: Zacks Investment Research
Further, McKesson shares trade at solid valuation levels, further bolstered by its Style Score of an A for Value.
MCK’s 14.9X forward earnings multiple is nicely below its Zacks Sector average of 20.9X, representing a steep 29% relative discount.
Image Source: Zacks Investment Research
Apple
One of the most popular stocks, Apple (AAPL - Free Report) , has revolutionized the mobile phone landscape with its legendary iPhone and has pushed technology to new heights. AAPL is a Zacks Rank #3 (Hold) with an overall VGM Score of a B.
Apple has been the definition of consistency within its quarterly results – AAPL has exceeded revenue and earnings estimates in 19 of its previous 20 quarterly reports.
Just in its latest print, Apple recorded a 5.3% EPS beat and a 1.2% revenue beat.
Image Source: Zacks Investment Research
In addition, Apple is the undisputed king of free cash flow; AAPL is on track to achieve the highest free cash flow of any S&P 500 company in 2022.
Free cash flow was reported at a spectacular $20.8 billion in its latest quarter, good enough for a solid 9.4% uptick from year-ago quarterly free cash flow of $19 billion.
Image Source: Zacks Investment Research
Even in the face of a harsh macroeconomic backdrop, AAPL is still forecasted to grow at an impressive pace – earnings are forecasted to grow 9% in FY22 and an additional 6% in FY23.
Image Source: Zacks Investment Research
Bottom Line
It’s no secret that it’s been rough sailing in the market in 2022. A hawkish Fed has been a primary reason for the rough waters, with geopolitical issues causing a storm of their own.
In rough times, it can be beneficial to see what other high-profile investors have targeted, such as Warren Buffett.
All three stocks above – Occidental Petroleum (OXY - Free Report) , Apple (AAPL - Free Report) , and McKesson (MCK - Free Report) – have seen buying activity from the Oracle of Omaha.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Shutterstock
Invest Like Warren Buffett With These 3 Stocks
Warren Buffett, commonly referred to as the Oracle of Omaha, comes to many peoples’ minds when thinking of the financial world. He’s a widely-followed individual in the realm, and his track record of excellence within the market is precisely why.
Of course, investors keep close tabs on every move he makes. And in 2022, he’s been on the offensive, obviously seeing opportunities in an otherwise dim market.
Three companies that have seen buying activity from the Oracle of Omaha include Apple (AAPL - Free Report) , Occidental Petroleum (OXY - Free Report) , and McKesson (MCK - Free Report) .
Below is a chart illustrating the share performance of all three companies with the S&P 500 blended in as a benchmark.
Image Source: Zacks Investment Research
Let’s take a deeper dive into each company.
Occidental Petroleum
One of Buffett’s most famous buys of 2022, Occidental Petroleum (OXY - Free Report) , is an integrated oil and gas company with significant exploration and production exposure. OXY is a Zacks Rank #3 (Hold) with an overall VGM Score of an A.
As expected, analysts have been bullish across all timeframes over the last 60 days, with earnings estimates rising substantially.
Image Source: Zacks Investment Research
OXY’s bottom-line is projected to skyrocket; the Zacks Consensus EPS Estimate for the company’s current fiscal year (FY22) sits at $11.00, penciling in a massive 330% Y/Y uptick.
Image Source: Zacks Investment Research
In addition, OXY has picked up strong momentum as of late, surpassing both bottom and top-line estimates in each of its previous four quarters. Below is a chart illustrating the company’s revenue on a quarterly basis.
Image Source: Zacks Investment Research
McKesson
Located in Texas, McKesson (MCK - Free Report) is a healthcare services and information technology company operating through two segments: Distribution Solutions and Technology Solutions. MCK is a Zacks Rank #2 (Buy) with an overall VGM Score of a B.
Similar to OXY, analysts have been bullish in their earnings outlook over the last several months, raising estimates significantly.
Image Source: Zacks Investment Research
McKesson has been on a blazing earnings streak – the company has impressively exceeded revenue and earnings estimates in nine of its previous ten prints. Just in its latest release, MCK penciled in a 10% bottom-line beat and a 5% revenue beat.
Image Source: Zacks Investment Research
Further, McKesson shares trade at solid valuation levels, further bolstered by its Style Score of an A for Value.
MCK’s 14.9X forward earnings multiple is nicely below its Zacks Sector average of 20.9X, representing a steep 29% relative discount.
Image Source: Zacks Investment Research
Apple
One of the most popular stocks, Apple (AAPL - Free Report) , has revolutionized the mobile phone landscape with its legendary iPhone and has pushed technology to new heights. AAPL is a Zacks Rank #3 (Hold) with an overall VGM Score of a B.
Apple has been the definition of consistency within its quarterly results – AAPL has exceeded revenue and earnings estimates in 19 of its previous 20 quarterly reports.
Just in its latest print, Apple recorded a 5.3% EPS beat and a 1.2% revenue beat.
Image Source: Zacks Investment Research
In addition, Apple is the undisputed king of free cash flow; AAPL is on track to achieve the highest free cash flow of any S&P 500 company in 2022.
Free cash flow was reported at a spectacular $20.8 billion in its latest quarter, good enough for a solid 9.4% uptick from year-ago quarterly free cash flow of $19 billion.
Image Source: Zacks Investment Research
Even in the face of a harsh macroeconomic backdrop, AAPL is still forecasted to grow at an impressive pace – earnings are forecasted to grow 9% in FY22 and an additional 6% in FY23.
Image Source: Zacks Investment Research
Bottom Line
It’s no secret that it’s been rough sailing in the market in 2022. A hawkish Fed has been a primary reason for the rough waters, with geopolitical issues causing a storm of their own.
In rough times, it can be beneficial to see what other high-profile investors have targeted, such as Warren Buffett.
All three stocks above – Occidental Petroleum (OXY - Free Report) , Apple (AAPL - Free Report) , and McKesson (MCK - Free Report) – have seen buying activity from the Oracle of Omaha.