We compiled 10 Warren Buffett stocks that are relatively cheap because they have P/E ratio of below 12 and 52-week returns of lower than 5.%
1. Wells Fargo & Co. Del (WFC):
Wells Fargo, a diversified financial services company, provides banking, insurance, investments, mortgage banking, investment banking, retail banking, brokerage, and consumer finance. WFC recently traded at $23.52 and has a 2.04% dividend yield. WFC lost 7.55% during the past 12 months. The stock has a market cap of $124.2 billion and P/E ratio of 9.12. Buffett had $9.9 billion invested in WFC shares. Whitney Tilson made a lot of money on Wells Fargo during the financial crisis by shorting the stock, but he thinks it is the best banking franchise by far among large US banks and expects its stock to go back and reestablish a position. John Paulson also had $943 million invested in Wells Fargo. Paulson increased his WFC holdings by 64% during the second quarter (see John Paulson’s top stock picks here).
2. Wal-Mart Stores, Inc. (WMT):
Wal-Mart operates retail stores worldwide. WMT recently traded at $51.36 and has a 2.84% dividend yield. WMT gained 1.46% during the past 12 months. The stock has a market cap of $177 billion and P/E ratio of 11.62. Buffett had $2.1 billion invested in WMT shares. Wal-Mart is also a favorite of Eagle Capital.
3. US Bancorp (USB):
U.S. Bancorp provides various banking and financial services in the United States. USB recently traded at $22 and has a 2.27% dividend yield. USB lost 1.43% during the past 12 months. The stock has a market cap of $42.3 billion and P/E ratio of 10.53. Buffett had $1.8 billion invested in USB shares. John Shapiro of Chieftain Capital has 8.5% of his portfolio represented by USB.
4. Washington Post Co. (WPO):
Washington Post is a diversified education and media company operating worldwide. WPO recently traded at $330 and has a 2.85% dividend yield. WPO lost 10.94% during the past 12 months. The stock has a market cap of $2.6 billion and P/E ratio of 12.47. Buffett had $724 million invested in WPO shares.
5. M & T Bank Corporation (MTB):
M&T Bank Corporation provides commercial and retail banking services. MTB recently traded at $70.5 and has a 3.97% dividend yield. MTB lost 15.72% during the past 12 months. The stock has a market cap of $8.9 billion and P/E ratio of 9.96. Buffett had $472 million invested in MTB shares.
6. Torchmark Corp. (TMK)
Torchmark Corporation provides individual life and supplemental health insurance products. TMK recently traded at $35.74 and has a 1.34% dividend yield. TMK gained 4.02% during the past 12 months. The stock has a market cap of $3.8 billion and P/E ratio of 7.82. Buffett had $181 million invested in TMK shares. Jim Simons’ Renaissance Technologies initiated $30 million position in TMK during the second quarter.
7. General Electric Co. (GE)
General Electric provides technology, media, and financial services worldwide. GE recently traded at $15.09 and has a 3.98% dividend yield. GE lost 2.65% during the past 12 months. The stock has a market cap of $160 billion and P/E ratio of 11.7. Buffett had $147 million invested in GE shares. Ken Fisher’ Fisher Asset Management, Phill Gross’ Adage Capital Management, Bill Miller’s Legg Mason Capital Management and D.E. Shaw had at least $100 million in GE at the end of June.
8. Bank of New York Mellon Corp. (BK)
The Bank of New York Mellon provides various products and services worldwide. BK recently traded at $19.92 and has a 2.61% dividend yield. BK lost 20.61% during the past 12 months. The stock has a market cap of $24.6 billion and P/E ratio of 9.22. Buffett had $46 million invested in BK shares.
9. Ingersoll-Rand Company LTD. (IR)
IR recently traded at $32.27 and has a 1.49% dividend yield. IR lost 6.16% during the past 12 months. The stock has a market cap of $10.7 billion and P/E ratio of 12.22. Buffett had $29 million invested in IR shares.
10. Gannett Inc. (GCI)
Gannett is a media and marketing solutions company operating worldwide. GCI recently traded at $9.84 and has a 3.25% dividend yield. GCI lost 24.83% during the past 12 months. The stock has a market cap of $2.4 billion and P/E ratio of 4.62. Buffett had $25 million invested in GCI shares. John Rogers’ Ariel Investments and Randall Smith’s Alden Global Capital had GCI in their portfolios at the end of June. source seekingalpha.com For the latest updates PRESS CTR + D or visit Stock Market news Today
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