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In the exciting world of stock trading, certain individuals stand out and become renowned for their remarkable achievements. Warren Buffett is undeniably one of those individuals, captivating the investing world with his extraordinary success. He is widely recognized as a legendary investor and has earned the esteemed nickname “Oracle of Omaha.”
For aspiring stock traders, Warren Buffett serves as a true inspiration. Studying his investment strategies and analyzing the stocks he holds in his portfolio can provide valuable insights into achieving similar levels of success. But here’s an additional factor that adds even more allure: when a stock receives the endorsement of a prestigious institution like Goldman Sachs, it can be a strong indicator of potential investment opportunities.
Curiosity piqued? We embarked on an exciting journey into the TipRanks database to uncover three stocks that have received the dual endorsement of both Warren Buffett and Goldman Sachs. These stocks carry the potential for lucrative returns and hold the seal of approval from two influential players in the investing world. So, let’s dive into the captivating details and explore the intriguing world of Warren Buffett and Goldman Sachs-endorsed stocks.
Occidental Petroleum (OXY) Forecast
The first stock is Occidental Petroleum (OXY), which is in the energy sector. Occidental Petroleum is a big company based in Houston, Texas. It explores, produces, and sells oil and gas. It has been around since 1920 and has become one of the largest independent oil and gas producers in the United States. The company also operates in other parts of the world, like the Middle East and Latin America.
Occidental Petroleum did very well last year because energy prices went up, and its stock gained 117%. But this year, its performance has not been as good.
In the first quarter, the company’s revenue decreased by 14.9% compared to the previous year. The company earned less money because the volumes and prices of crude oil and natural gas went down. Even though the company’s free cash flow also decreased, it still bought back its own stock. In the first quarter, it bought $752 million worth of stock, and it plans to buy $3 billion worth of stock in 2023.
Despite the underperformance, Warren Buffett is a big fan of Occidental Petroleum. He owns a lot of its shares and bought even more in the first quarter and in May. He currently owns around 217.3 million shares, which are worth a lot of money. His faith in the company is supported by Goldman Sachs analyst Neil Mehta, who also has a positive view of Occidental Petroleum.
Mehta believes the company has good potential to generate cash and expects it to buy back more shares and simplify its corporate structure. He rates the stock as a Buy and has a price target of $77, which suggests a 31% return over the next 12 months.
Other analysts on Wall Street also have a positive view of the stock, with a Moderate Buy consensus rating. The average price target is $71.67, which implies a 22% return in one year.
So, according to Warren Buffett and Goldman Sachs, Occidental Petroleum seems like a promising stock to consider investing in.
Charter Communications (CHTR) Forecast
Now let’s talk about a big company in the telecom industry called Charter Communications. It is one of the largest telecommunications and mass media companies in the United States. It is actually the second-largest cable operator in the country in terms of subscribers. Charter offers various services like cable television, high-speed internet, and telephone services to both homes and businesses. They operate under the name Spectrum and have millions of customers in 41 states.
Besides their main services, Charter also has a video-on-demand platform called Spectrum TV, where subscribers can watch a wide selection of movies and TV shows.
In their recent quarterly report, Charter missed profit expectations, but investors focused on the positive aspects. While their earnings per share (EPS) of $6.65 fell short of expectations, their revenue increased by 3.4% compared to the previous year, reaching $13.65 billion and surpassing expectations by $40 million. Their adjusted EBITDA, a measure of profitability, also grew by 2.6% to $5.4 billion. The company reported a record of 686,000 new wireless subscribers in the quarter.
Warren Buffett is also involved with Charter. He owns a significant amount of CHTR stock, with a total of 3,828,941 shares valued at over $1.27 billion.
Feldman believes that Charter can achieve low single-digit percentage growth in EBITDA (a measure of profitability) in 2023, with growth accelerating in the second half of the year. He also expects that Charter will continue to repurchase its own stock over the next five years, even during periods of high spending on capital expenditures. He estimates that Charter will repurchase nearly $40 billion of stock in the next five years, which is almost 60% of its market value.
Based on Feldman’s analysis, he rates CHTR shares as a buy and has a price target of $450. This suggests a potential upside of 35% from the current stock price.
However, there is a mixed opinion among analysts on Wall Street. Out of 16 recent analyst reviews, there are 7 buy ratings, 8 hold ratings, and 1 sell rating, resulting in a moderate buy consensus rating. The average price target is $469.65, implying a potential return of 41% over the next year.
In summary, Charter Communications shows promise, according to both Warren Buffett and Goldman Sachs. While there are differing opinions among analysts, the potential for growth and positive outlook for the company make it an interesting stock to consider.
Marsh & McLennan Companies (MMC) Forecast
Now let’s talk about Marsh & McLennan Companies, a well-known global professional services company that has received endorsements from both Warren Buffett and Goldman Sachs. Marsh & McLennan specializes in risk management, insurance brokerage, and consulting services. The company operates through four main subsidiaries: Marsh, Guy Carpenter, Mercer, and Oliver Wyman. With expertise in these diverse areas, Marsh & McLennan is able to provide comprehensive solutions to clients worldwide.
Marsh focuses on providing insurance broking and risk management solutions to clients, helping them deal with complex risks and protect their assets. Guy Carpenter specializes in reinsurance brokerage and strategic advisory services, assisting insurers in managing their reinsurance needs. Mercer offers human resources consulting services, including employee benefits, talent management, and retirement planning. Lastly, Oliver Wyman provides management consulting services, helping clients in various industries with strategic planning, risk assessment, and operational improvement.
With over 150 years of experience, Marsh & McLennan has established itself as a trusted global company. In the most recent quarter, 1Q23, the company performed well, driven by strong performance in its risk and insurance services. Revenue increased by 6.3% compared to the previous year, reaching $5.9 billion and surpassing expectations by $40 million. Adjusted earnings per share (EPS) of $2.53 improved from $2.30 in the same period last year and exceeded expectations by $0.06. During the quarter, the company repurchased 1.8 million shares of its stock for $300 million.
Warren Buffett is involved with Marsh & McLennan through his ownership of 404,911 shares, which are currently valued at over $70.58 million.
Marsh & McLennan also has support from Goldman Sachs analyst Robert Cox. Reviewing the 1Q23 results, Cox finds many positive points that keep him optimistic about the company’s future.
Cox believes that Marsh & McLennan is taking advantage of strong conditions in the property and casualty (P&C) insurance brokerage market, and their investments in talent are producing results. He expects the company’s margins to continue expanding with further expense efficiencies. The company’s organic growth in risk and insurance services exceeded expectations in the quarter, leading Cox to raise his estimate for full-year 2023 organic growth. He rates MMC shares as a Buy with a price target of $202, which suggests a potential upside of 16% from the current stock price.
Looking at the overall analyst consensus, there are 3 analysts who agree with Cox’s bullish view, while 6 analysts have a Hold rating and 1 analyst has a Sell rating. This results in a Moderate Buy consensus rating for the stock. The average price target is $189.80, implying a potential growth of approximately 9% over the coming months.
In summary, Marsh & McLennan Companies is a globally recognized professional services company that has received endorsements from both Warren Buffett and Goldman Sachs. With its expertise in risk management, insurance brokerage, and consulting, the company is well-positioned to provide comprehensive solutions to clients worldwide. Despite some mixed opinions among analysts, there is optimism for the company’s future growth and potential for investment returns.
Conclusion and Disclaimer
In the dynamic world of stock trading, the endorsements of Warren Buffett and Goldman Sachs hold significant weight. Our exploration led us to three captivating stocks: Occidental Petroleum (OXY), Charter Communications (CHTR), and Marsh & McLennan Companies (MMC). While each stock carries its own potential and varying analyst opinions, it’s essential to conduct thorough research and consider individual circumstances before making investment decisions. Remember, investing always carries risks, and seeking guidance from a financial advisor is prudent. Happy trading, and may your investments be fruitful.