![]() Moreover, its infrastructure investments directly earn positive returns approved by state regulators. Therefore, Public Service Enterprise enjoys insulation from usage fluctuations. However, I think it’s different in this case, because so much of the company’s footprint operates under revenue decoupling mechanisms. With interest rates remaining high, many avoid utility stocks, given their rate-sensitive business models. gifts PEG a captive customer base, but management deserves credit for driving operations excellence and efficiency. Of course, serving the densely-populated Northeast U.S. From my perspective, for a supposedly boring gas and electric utility play, PEG stock boasts exciting growth. Moreover, management doubled down on full-year earnings guidance. Earnings per share grew 23% alongside 8% revenue growth. In my opinion, the company’s recently reported Q3 figures were spectacular. Beyond the Buffett vote of confidence, Public Service Enterprise sports rock-solid financials and fundamentals. One such example is Public Service Enterprise (NYSE: PEG), held by Berkshire subsidiary New England Asset Management. However, lesser-known subsidiaries of Buffett’s empire offer hidden value plays as well. ![]() Naturally, when one hears “Berkshire stock,” names like Apple (NASDAQ: AAPL) and Bank of America (NYSE: BAC) spring to mind. With value investing icon Warren Buffett recently boosting his stake, Sirius seems like an intriguing value bet here. From my perspective, with catalysts aligning, it appears that the fallen radio star could shine again soon. But at 15-times forward earnings, Sirius still trades at a steep discount to its historical levels, as well as its peers. Of course, this stock has only begun clawing back from a more than 40% drop in 2022. Indeed, shares are already up 34% in the past six months as of this writing. The market seems to agree that Sirius possesses turnaround potential. In my view, with costs well controlled, any revenue uptick should substantially boost profits. Notably, while revenue growth slowed over the years, Sirius has rapidly grown earnings. Churning video customers may opt for cheaper audio alternatives like Sirius. I believe Sirius will likely return to customer growth, especially with video streaming services facing password-sharing crackdowns. As things considered, it offers a compelling, differentiated audio product. Sirius happens to boast an unrivaled content library spanning exclusive artist channels, live sports, news, and more. Yes, podcasts are not radio per se, but they speak to a strong ongoing demand for audio content. While Sirius faces secular decline risks, its fortunes appear to be turning around.įrom my perspective, a resurgence in podcasting bodes very well for Sirius. However, I believe the rumors of radio’s demise are greatly exaggerated. Its years of sluggish growth and an exodus of customers to trendier music platforms certainly don’t help its case. Thus, many have left legacy radio stalwarts like Sirius XM (NASDAQ: SIRI) for dead. We live in an increasingly digital era where video and music streaming rule. Let’s take a closer look at why Warren Buffett likely scooped up these three value stocks this past quarter. That’s the very definition of value stocks. Even during rocky times, Buffett keeps an eye out for companies trading at levels below what he believes they are intrinsically worth. As we near the end of 2023, it makes sense to consider where the master value investor himself is putting money right now. One great way to do that is to follow Buffett’s own moves and look at which value stocks Berkshire Hathaway (NYSE: BRK-A, NYSE: BRK-B) bought into last quarter. However, with his decades of investing experience, his caution definitely merits attention, and it’s probably a smart idea for investors to start adding some value stocks to hedge against potential market volatility. Of course, Warren Buffett doesn’t have a crystal ball that can perfectly predict the future. Like most investors, the Oracle of Omaha himself has been quite selective and cautious in picking stocks lately, and he doesn’t seem too optimistic about economic conditions overall, if his dumping of billions of dollars of stocks is any indication. This year has been a little dry when it comes to Warren Buffett stocks.
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