Investing

Warren Buffett Stocks That Are Screaming Buys in July

Joshua Rodriguez

Published: July 1, 2024 8:35 am

If you want to find success in any field, it’s typically a good idea to follow the leaders of that field and attempt to mimic their actions. So, if you want to become a profitable investor, it may be a good idea to look into what investors like Warren Buffett are nesting their money into. 

We did just that and found 3 stocks in Buffett’s portfolio that are screaming buys for July. Find those stocks and why we believe they’re screaming buys below. 

Amazon.com Is a Tech Powerhouse

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Warren Buffett has long been a fan of Jeff Bezos, the founder of Amazon.com (Nasdaq: AMZN). So, it’s not surprising that Amazon.com is one of the top holdings in the Berkshire Hathaway portfolio. Though the stock doesn’t fit into the value category that Buffett is most known for investing in, it is a high-growth stock that has produced meaningful gains in Buffett’s portfolio for some time now. 

And it looks like we’ll see more of the same ahead. Amazon.com is a clear winner in the e-commerce category, controlling more than 37% of the United States market. The closest competitor, Walmart, only has a 6.4% share of the e-commerce market. And, Amazon’s e-commerce dominance isn’t likely to change anytime soon. 

But, e-commerce isn’t the only area where Amazon.com shines. It’s cloud computing division, Amazon Web Services (AWS), is expected to generate more than $100 billion in revenue this year. And, the company is seeing substantial growth in ad revenue – up nearly 25% year-over-year. 

So, what has that done for the company’s revenue?

Amazon.com produced $590.74 billion in revenue in the 12 months leading up to March 31, 2023. That number was 12.54% higher than it was one year earlier. That revenue growth follows a strong history of more of the same, with strong growth helping to justify the company’s relatively high price-to-earnings ratio. 

Coca-Cola Is an Income Play With Growth Potential

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If you’re looking for a strong income stock that has the potential for compelling growth in Warren Buffett’s portfolio, look no further than Coca-Cola (NYSE: KO). It’s a household name, so there’s a high probability that you’ve heard of the Coca-Cola brand. But soft drinks aren’t the only products the company sells. 

Coca-Cola offers a long line of drinks that range from its traditional soft drinks to juices, hydration aides, coffee, and even bottled water. And, unlike its rival, Pepsi, Coca-Cola has kept a laser focus on the beverage industry rather than branching into foods and snacks. Some experts argue that this singular focus is a driving force behind the company’s success. 

Not only does Coca-Cola control over 46% of the soft drink market in the United States, but the company’s flagship brand — the Coca-Cola soft drink — is the most popular soft drink in the world. And, considering the company’s brand appeal, that’s not likely to change anytime soon. 

In fact, Coca-Cola is so confident in its ability to drive revenue and profitability that the company pays a meaningful dividend. At the moment, Coca-Cola offers a $0.48 quarterly dividend, which represents a 3.04% dividend yield. And, adding that dividend yield to the stock’s price growth, which has been more than 6% year to date, makes Coca-Cola a compelling investment opportunity. 

Chevron Is a Compelling Income Play

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Finally, if you’re looking for a good mix of income and value in a Warren Buffett stock, look no further than Chevron. Chevron (NYSE: CVX) is one of the largest oil and gas companies in the world, boasting a market cap of nearly $300 billion. But, that’s not the only reason to invest in the company. 

Among the stocks on this list, it has the lowest P/E ratio by far at just 12.73, which could make it attractive to value investors. At the same time, Chevron pays a $1.63 quarterly dividend, representing a 4.10% dividend yield — the highest on this list. 

So, what is Chevron doing right?

The company has long been a leader in the oil and gas industry. But, considering recent climate change conversations and regulatory updates, high-carbon oil and gas are slated to be replaced with low-carbon alternatives at some point. 

While that transition will likely take decades, the energy companies that hop on the bandwagon now will have a competitive advantage later. Chevron is an early player in the clean energy revolution as well as being a large company with a household name.

The company is currently working to become a leader in low-carbon intensity oil as well as natural gas products. And, it’s investing in the production of new technologies that have the potential to reduce carbon emissions across entire industries. 

The Bottom Line

If you want to be as successful at investing as Warren Buffett, it won’t hurt to take a few plays from his playbook. Amazon, Coca-Cola, and Chevron all represent strong opportunities, and they do so for different reasons. Whether you’re into growth, value, or income, at least one of the companies above will likely appeal to you.