IBD Long-Term Leaders Cadence Design Systems ,cdns) And Monolithic Power Systems ,mpwrJoin Google Parent Alphabet ,Google) on this screen of Warren Buffett stocks based on the investment strategy of the CEO of Berkshire Hathaway.
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Highlighting Warren Buffett Stocks
39 companies make up this stock screen, including GOOGL stock, CDNS and MPWR.
building materials manufacturer Atkor ,atkr) topped the list with an impressive permanent income growth rate of 90%. (The rate is calculated by multiplying a company’s ROE by its earnings retention ratio, which is the percentage of earnings that are not paid out as dividends.)
including Atkor, Builders Firstsource ,bldr) And steel dynamics ,stld), five companies on this screen had a sustainable growth rate above 50%. pool ,pool) and solar energy sports daco new energy ,DQ) also earned that distinction.
nucor ,nue) misses that distinction with a 44% sustainable growth rate. Reliance Steel ,Rupees) (25%) and Brazilian steel producers gerdau ,ggb) (17%) also form this screen of Warren Buffett’s stocks.
retail stock lululemon athletica ,lulu, boot barn ,boot) And Buckle ,bke) also cut.
led by dr horton ,d h i), the home makers have made a strong presence on this screen. Pulte Group ,phm, lenar ,lane, Meritage Homes ,month), And Tri Pointe Homes ,TPH) are also on the list.
GOOGL Joins Tech Names Among Warren Buffett Stocks
Since the Oracle of Omaha never wrote a book detailing his investment strategy, there is no definitive shopping checklist. But parts of Buffett’s stock-picking strategy can be gleaned from the annual report Berkshire Hathaway ,BRKB,
The list below highlights Warren Buffett stocks such as Alphabet, Cadence Design Systems, and Monolithic Power Systems, with Buffett’s focus on management quality and long-term growth.
The screen also picks up a number of other tech names, reflecting the recovery in the tech sector following last year’s bear market decline. Warren Buffett’s latest list of stocks also includes STMicroelectronics ,STM, PTC ,PTC, appm system ,EPAM), and Chinese online gaming platform netage ,NTES,
Created in MarketSmith, the screen below emphasizes metrics to consider when looking for companies with long-term past, and likely future, growth. To make the list, each stock must meet a wide range of criteria, including:
- In the top 25% of all stocks in terms of five-year annualized EPS growth rates.
- 15% or more sustainable income growth.
- Five year average return on equity of 12% or better.
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Warren Buffett Stocks: MarketSmith Screen
| company | Sign | growth % | ROE 5-year average | comp rating | EPS Rating | rs rating | SMR Rating |
|---|---|---|---|---|---|---|---|
| Atkor | atkr | 90 | 72.1 | 96 | 92 | 95 | A |
| Builders Firstsource | bldr | 63 | 45.1 | 96 | 97 | 94 | A |
| daco new energy | DQ | 62 | 22.6 | 91 | 99 | 81 | A |
| steel dynamics | stld | 54 | 38.4 | 93 | 81 | 95 | b |
| pool | pool | 50 | 60.4 | 77 | 86 | 57 | b |
| nucor | nue | 44 | 31.9 | 90 | 67 | 89 | b |
| Cadence Design Systems | cdns | 43 | 36.1 | 98 | 97 | 94 | A |
| clear field | CLFD | 39 | 22.6 | 50 | 99 | 9 | A |
| boot barn | boot | 38 | 26.4 | 83 | 76 | 79 | b |
| lululemon athletica | lulu | 38 | 36.9 | 88 | 97 | 43 | A |
| Winnebago Industries | WGO | 37 | 26.6 | 88 | 79 | 81 | b |
| Old Dominion Freight Line | ODFL | 34 | 28.3 | 97 | 97 | 91 | A |
| STMicroelectronics | stm | 34 | 17.4 | 98 | 98 | 95 | A |
| commercial metals | cmc | 33 | 23.7 | 96 | 99 | 85 | A |
| dr horton | d h i | 32 | 25.8 | 95 | 92 | 94 | b |
| Monolithic Power Systems | mpwr | 30 | 29.3 | 99 | 99 | 92 | A |
| Pulte Group | phm | 30 | 21.4 | 98 | 99 | 94 | A |
| evercore | EVR | 28 | 45.7 | 81 | 57 | 88 | C |
| Meritage Homes | month | 28 | 21 | 99 | 97 | 94 | A |
| UFP packaging | UFPI | 28 | 22.4 | 77 | 93 | 65 | b |
| Shadow | Shadow | 26 | 18.7 | 97 | 91 | 94 | A |
| PTC | PTC | 25 | 22.6 | 89 | 92 | 81 | A |
| Regeneron Pharmaceutical | Registration | 25 | 35 | 88 | 66 | 89 | b |
| Reliance Steel And Aluminum | Rupees | 25 | 19.6 | 94 | 81 | 95 | b |
| super microcomputer | SMCI | 25 | 23.4 | 99 | 99 | 97 | A |
| appm system | EPAM | 24 | 20.5 | 62 | 95 | 32 | A |
| Alphabet | 24 | 22 | 52 | 73 | 29 | b | |
| West Pharmaceutical Services | wst | 24 | 22.5 | 91 | 83 | 89 | b |
| perian network | Perry | 23 | 15.7 | 97 | 98 | 98 | A |
| Shutterstock | SSTK | 23 | 25.5 | 94 | 97 | 93 | A |
| West Lake | WLK | 23 | 17.4 | 66 | 50 | 69 | b |
| Tri Pointe Homes | TPH | 22 | 16.7 | 98 | 97 | 94 | b |
| lenar | lane | 21 | 17.3 | 98 | 97 | 93 | A |
| netage | NTES | 21 | 21.7 | 82 | 89 | 83 | b |
| Triton International | trtn | 18 | 19.4 | 89 | 90 | 65 | A |
| gerdau | ggb | 17 | 15.7 | 90 | 80 | 76 | b |
| Quanta Services | PWR | 17 | 14.5 | 92 | 94 | 90 | b |
| Buckle | bke | 16 | 53.3 | 91 | 83 | 82 | A |
| Danaher | DH | 16 | 14.7 | 52 | 89 | 32 | b |
created using screen marketsmith Figures till March 15
Warren Buffett Stocks in Demand by Top Funds
This screen of Warren Buffett stocks in the latest list of new buys by Best Mutual Funds also highlights several names.
On the tech side, Cadence Design Systems, Monolithic Power Systems, and STMicroelectronics both make the list.
From the building sector, Atcor, builders Firstsource, Meritage Homes, and Pultegroup all make the cut.
IBD Stock Rating Vs. oracle of omaha
IBD uses different criteria than the ones used for this list of Warren Buffett stocks. MPWR and SMCI, for example, score the highest possible 99 overall rating. The rating means that the stock is outperforming 99% of all companies in terms of key stock-picking traits. Cadence Design Systems earns a score of 98 ibd stock checkup,
After all the carnage in the tech sector last year, GOOGL stock has come down to a 52 overall rating.
Many of the companies on the list, including Alphabet, meet typical Warren Buffett criteria, but some don’t meet benchmarks that slick investors may be looking for in other stock ratings Which measures the fundamental, as well as technical, strength of a company.
Ranging from 1 (worst) to 99 (best), the overall rating reflects how strongly a company is exhibiting the seven telltale qualities of winning stocks. For example, a rating of 95 means that the company is outperforming 95% of all other stocks in terms of the most important fundamental and technical stock-selection criteria.
The EPS rating tracks a company’s annual and quarterly earnings growth, then measures how that number compares to all other stocks. So like the overall rating, a score of 95 means that the company’s EPS growth is in the top 5% of all stocks.
Similarly, SMR Ratings tracks sales growth, profit margin and return on equity overall, while identifying stocks with strong fundamentals. An A rating means that the company is in the top 20% of all stocks in terms of those key fundamental performance metrics. Since this is associated with veteran investors’ focus on company fundamentals, this could be a particularly useful rating for investors looking for potential Warren Buffett stocks.
Follow Mathieu Galgani on Twitter @IBD_MGalgani,
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