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3 Buffett-Like Stocks for Your Short List

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Key Takeaways

  • Warren Buffett likes companies selling at a discount, but which have growth and a moat.
  • Aptiv and Mistras Group are cheap old economy companies that are pivoting towards AI.
  • MillerKnoll has famous brands like Herman Miller but is cheap with a forward P/E of 7.9.

  • (0:30) - Finding Stocks With Warren Buffett Fundamentals
  • (9:10) - Tracey’s Top Stock Picks For Your Portfolio
  • (28:15) - Episode Roundup: APTV, MG, MLKN
  •                 Podcast@Zacks.com

 

Welcome to Episode #422 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.

As Warren Buffett moves closer to his official retirement as CEO of Berkshire Hathaway, Tracey screened for stocks that would be “Buffett-like.”

What are “Buffett-like” stocks?

They would be companies that were cheap on a value fundamental basis. It would have a low price-to-earnings (P/E) ratio, a low price-to-sales (P/S) ratio, a low PEG ratio and other cheap fundamentals.

But Buffett doesn’t only looked for cheapness. The company also has to have growth. The PEG ratio will help you get that.

Buffett Likes Companies with Moats

Buffett likes companies that have moats. That means they are in an industry that has high barriers of entry or the companies have eliminated most competitors.

For example, how many big mega banks exist in the United States in 2025? There are only 4 now.

How many companies make airplanes? How many are making tractors? Buffett has owned Coca-Cola for decades because it’s the only company that makes Coca-Cola. Buffett loves brands that have a monopoly product.

Screening for Buffett-Like Stocks

Tracey ran a Zacks Classic Value stock screen to find Buffett-like stocks. It doesn’t screen for a moat, but it does look for extremely cheap stocks in numerous categories including P/B, P/S, PEG and P/E ratios.

The screen also looks for companies that are Zacks #1 Rank (Strong Buy) or #2 Rank (Buy) stocks. These are the top 2 ranks, which should mean that analysts are raising 2025 and 2026 earnings estimates.

Rising earnings estimates usually indicate something “good” is going on at a company. The analysts are getting more bullish.

Running the classic value screen, it returned 9 stocks in various industries.

3 Buffett-Like Stocks for Your Short List

1. Aptiv PLC (APTV - Free Report)

Aptiv is a global technology company with a market cap of $17.9 billion. It is involved in both vehicle component manufacturing but also AI-powered robots.

Third quarter revenue was up 7% to $5.2 billion. Aptiv raised full year 2025 guidance. It is having an Investor Day on Nov 18, 2025. Future investors should tune in.

Shares are up 30.9% year-to-date. Aptiv is cheap. It has a P/E ratio of just 10.5. A P/E ratio under 15 is considered a value. Aptiv also has a PEG ratio of just 0.8. A PEG ratio under 1.0 means a company has both value and growth.

Aptiv is a Zacks Rank #2 (Buy) stock.

Should Aptiv be on your short list?

2. Mistras Group, Inc. (MG - Free Report)

Mistras Group is a leading “one source” multinational provider of integrated technology-enabled asset protection solutions like pipeline inspections. It is in oil and natural gas, aerospace and defense, and power and utilities.

Mistras is a small cap company with a market cap of $400 million. In the third quarter, Mistras expanded gross profit margins by 300 basis points quarter-over-quarter to 29.8% from 26.8%.

Shares of Mistras are up 37.6% year-to-date but are still cheap. It has a forward P/E of 15.5 and a PEG ratio of 0.97. Buffett likes companies in these old economy industries as they have moats.

Mistras Group is a Zacks Rank #2 (Buy) stock.

Should a small cap like Mistras Group be on your short list?

3. MillerKnoll, Inc. (MLKN - Free Report)

MillerKnoll manufactures furniture, home accessories and office furniture through 15 global brands including Herman Miller, Knoll, HAY and Design Within Reach. It operates 80+ retail stores globally.

MillerKnoll is a small cap company, with a market cap of $1 billion. It has been struggling with tariffs and the slowdown in the US housing market.

Shares of MillerKnoll are down 35% year-to-date. It’s dirt cheap with a forward P/E of just 7.9 but it has a PEG ratio of 0.7. It has that valuable combination of growth and value.

Buffett has always liked companies that have strong brands and MillerKnoll has that with Herman Miller and Knoll.

MillerKnoll is a Zacks Rank #2 (Buy).

Is MillerKnoll a deal after the big drop in the shares in 2025?

What Else Should You Know About Buffett-Like Stocks?

Tune into this week’s podcast to find out. 


See More Zacks Research for These Tickers


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Mistras Group Inc (MG) - free report >>

Aptiv PLC (APTV) - free report >>

MillerKnoll, Inc. (MLKN) - free report >>

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