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Zacks Value Trader Highlights: Union Pacific, Haverty Furniture, The Hershey Company, Signet Jewelers and Redfin
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For Immediate Release
Chicago, IL – May 15, 2023 – 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: https://www.zacks.com/stock/news/2094791/how-to-create-your-own-mini-berkshire-hathaway)
(0:30) - What Can You Learn From The Latest Berkshire Hathaway Meeting?
(6:20) - Creating Your Own Berkshire Hathaway Portfolio
(27:10)
On May 6, 2023, Berkshire Hathaway held its annual meeting in Omaha, where Warren Buffett and Charlie Munger held court in a 5-hour question and answer session, halted only by a lunch break.
This annual meeting was rather subdued compared to those in the past. The biggest tidbit of gossip was that Buffett considers Apple to be the best business that they own. Additionally, he said Berkshire was not intending on buying out Occidental Petroleum.
But what if, as an investor, you wanted to own the various businesses that Buffett owns, but you didn't want to do so by owning shares of Berkshire Hathaway? Berkshire Hathaway now has $130 billion in cash but doesn't pay a dividend. That's a lot of cash sitting on the sidelines.
It's also not cheap, with a forward P/E of 17.
Creating Your Own Mini Berkshire Hathaway
Anyone can mimic Berkshire Hathaway's equity portfolio. That's easy. The company files Form 4s every quarter disclosing what stocks they are buying, and selling.
But what about its other businesses? It owns See's Candy, Dairy Queen, BNSF Railroad, Nebraska Furniture Market and a bunch of other companies.
5 Berkshire-Like Companies You Could Buy Right Now
Haverty Furniture operates 100 showrooms in 16 southern and Midwest states. Founded in 1885, Haverty is in the same mold as some of Buffett's furniture investments like Nebraska Furniture Market.
Shares of Haverty have fallen 14.6% year-to-date. It's dirt cheap, with a forward P/E of 6.7. Haverty also pays a dividend, currently yielding 4.3%.
However, with the US housing market slowing, so are Haverty's sales. Sales fell 5.9% in the first quarter.
Hershey is a confection and food company that makes famous candy brands such as Reese's and Almond Joy. While it's not identical to Berkshire's See's Candy, it's the closest publicly traded candy company out there.
Hershey shares have been on a tear in 2023, gaining 18.7%. It's also near a 5-year high. But Hershey doesn't come cheap. It's trading at 29x.
Signet Jewelers is an option if you want to own a jewelry store like Warren Buffett. Berkshire Hathaway bought Helzberg Diamonds in 1996.
Shares of Signet Jewelers are up 5.5% year-to-date and 88% over the last 5 years. The 5-year performance easily beats the S&P 500, which is up 51.7% during that time.
Signet Jewelers is cheap, with a forward P/E of 6.2.
Should you consider Signet Jewelers even though a recession may be coming?
Redfin is a real estate brokerage. Did you know that Berkshire Hathaway also owns one? It's Berkshire Hathaway HomeServices.
It's been a wild couple of years for Redfin's shares. Over the last 2 years, it's down 78% but in 2023, Redfin is hot, gaining 161%.
Redfin doesn't have a P/E as earnings are expected to be negative in both 2023 and 2024.
Is a rebound in housing already priced into Redfin shares?
What Else do Value Investors Need to Know About Creating a Mini Berkshire Hathaway?
Listen to this week's podcast to find out.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. Today you can access their live picks without cost or obligation.
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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/performancefor information about the performance numbers displayed in this press release.
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Zacks Value Trader Highlights: Union Pacific, Haverty Furniture, The Hershey Company, Signet Jewelers and Redfin
For Immediate Release
Chicago, IL – May 15, 2023 – 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: https://www.zacks.com/stock/news/2094791/how-to-create-your-own-mini-berkshire-hathaway)
On May 6, 2023, Berkshire Hathaway held its annual meeting in Omaha, where Warren Buffett and Charlie Munger held court in a 5-hour question and answer session, halted only by a lunch break.
This annual meeting was rather subdued compared to those in the past. The biggest tidbit of gossip was that Buffett considers Apple to be the best business that they own. Additionally, he said Berkshire was not intending on buying out Occidental Petroleum.
But what if, as an investor, you wanted to own the various businesses that Buffett owns, but you didn't want to do so by owning shares of Berkshire Hathaway? Berkshire Hathaway now has $130 billion in cash but doesn't pay a dividend. That's a lot of cash sitting on the sidelines.
It's also not cheap, with a forward P/E of 17.
Creating Your Own Mini Berkshire Hathaway
Anyone can mimic Berkshire Hathaway's equity portfolio. That's easy. The company files Form 4s every quarter disclosing what stocks they are buying, and selling.
But what about its other businesses? It owns See's Candy, Dairy Queen, BNSF Railroad, Nebraska Furniture Market and a bunch of other companies.
5 Berkshire-Like Companies You Could Buy Right Now
1. Union Pacific Corp. (UNP - Free Report)
Union Pacific Corp. is a big American railroad, similar to Berkshire's BNSF.
Shares of Union Pacific are down 4.3% year-to-date but it's not that cheap. It trades with a forward P/E of 17.8.
Earnings are expected to be up 0.09% this year and 7.1% in 2024. But is that enough to pay 17.8x?
Should you buy Union Pacific, an "old economy" stock, in 2023?
2. Haverty Furniture (HVT - Free Report)
Haverty Furniture operates 100 showrooms in 16 southern and Midwest states. Founded in 1885, Haverty is in the same mold as some of Buffett's furniture investments like Nebraska Furniture Market.
Shares of Haverty have fallen 14.6% year-to-date. It's dirt cheap, with a forward P/E of 6.7. Haverty also pays a dividend, currently yielding 4.3%.
However, with the US housing market slowing, so are Haverty's sales. Sales fell 5.9% in the first quarter.
Is Haverty a deal?
3. The Hershey Company (HSY - Free Report)
Hershey is a confection and food company that makes famous candy brands such as Reese's and Almond Joy. While it's not identical to Berkshire's See's Candy, it's the closest publicly traded candy company out there.
Hershey shares have been on a tear in 2023, gaining 18.7%. It's also near a 5-year high. But Hershey doesn't come cheap. It's trading at 29x.
Is Hershey overbought?
4. Signet Jewelers Ltd. (SIG - Free Report)
Signet Jewelers is an option if you want to own a jewelry store like Warren Buffett. Berkshire Hathaway bought Helzberg Diamonds in 1996.
Shares of Signet Jewelers are up 5.5% year-to-date and 88% over the last 5 years. The 5-year performance easily beats the S&P 500, which is up 51.7% during that time.
Signet Jewelers is cheap, with a forward P/E of 6.2.
Should you consider Signet Jewelers even though a recession may be coming?
5. Redfin Corp. (RDFN - Free Report)
Redfin is a real estate brokerage. Did you know that Berkshire Hathaway also owns one? It's Berkshire Hathaway HomeServices.
It's been a wild couple of years for Redfin's shares. Over the last 2 years, it's down 78% but in 2023, Redfin is hot, gaining 161%.
Redfin doesn't have a P/E as earnings are expected to be negative in both 2023 and 2024.
Is a rebound in housing already priced into Redfin shares?
What Else do Value Investors Need to Know About Creating a Mini Berkshire Hathaway?
Listen to this week's podcast to find out.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. Today you can access their live picks without cost or obligation.
See Stocks Free >>
Tracey Ryniec is the Value Stock Strategist for Zacks.com. She is also the Editor of the Insider Trader and Value Investor services. You can follow her on twitter at @TraceyRyniec and she also hosts the Zacks Market Edge Podcast on iTunes.
About Zacks
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Click here for your free subscription to Profit from the Pros.
Follow us on Twitter: https://twitter.com/zacksresearch
Join us on Facebook: https://www.facebook.com/ZacksInvestmentResearch/
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
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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/performancefor information about the performance numbers displayed in this press release.