• Home
  • Politics
  • Health
  • World
  • Business
  • Finance
  • Tech
  • More
    • Sports
    • Entertainment
    • Lifestyle
What's Hot

Trump Announces First Post-Tariff Trade Deal

May 8, 2025

100 Funny Father’s Day Quotes for Hilariously Relatable Humor (and Plenty of Love Too)

May 8, 2025

Top 10 Benefits Of Acupuncture

May 8, 2025
Facebook Twitter Instagram
  • Contact
  • Privacy Policy
  • Terms & Conditions
Friday, May 9
Patriot Now NewsPatriot Now News
  • Home
  • Politics

    Security video shows brazen sexual assault of California woman by homeless man

    October 24, 2023

    Woman makes disturbing discovery after her boyfriend chases away home intruder who stabbed him

    October 24, 2023

    Poll finds Americans overwhelmingly support Israel’s war on Hamas, but younger Americans defend Hamas

    October 24, 2023

    Off-duty pilot charged with 83 counts of attempted murder after allegedly trying to shut off engines midflight on Alaska Airlines

    October 23, 2023

    Leaked audio of Shelia Jackson Lee abusively cursing staffer

    October 22, 2023
  • Health

    Disparities In Cataract Care Are A Sorry Sight

    October 16, 2023

    Vaccine Stocks—Including Pfizer, Moderna, BioNTech And Novavax—Slide Amid Plummeting Demand

    October 16, 2023

    Long-term steroid use should be a last resort

    October 16, 2023

    Rite Aid Files For Bankruptcy With More ‘Underperforming Stores’ To Close

    October 16, 2023

    Who’s Still Dying From Complications Related To Covid-19?

    October 16, 2023
  • World

    New York Democrat Dan Goldman Accuses ‘Conservatives in the South’ of Holding Rallies with ‘Swastikas’

    October 13, 2023

    IDF Ret. Major General Describes Rushing to Save Son, Granddaughter During Hamas Invasion

    October 13, 2023

    Black Lives Matter Group Deletes Tweet Showing Support for Hamas 

    October 13, 2023

    AOC Denounces NYC Rally Cheering Hamas Terrorism: ‘Unacceptable’

    October 13, 2023

    L.A. Prosecutors Call Out Soros-Backed Gascón for Silence on Israel

    October 13, 2023
  • Business

    Trump Announces First Post-Tariff Trade Deal

    May 8, 2025

    Electric Vehicle Sales Nosedive As GOP Takes Buzzsaw To Biden’s Mandate

    May 7, 2025

    Tyson Foods Announces It Will Bend The Knee To Trump Admin’s New Rules

    May 7, 2025

    Federal Reserve Holds Interest Rates Steady Despite Pressure From Trump

    May 7, 2025

    ‘Wait Them Out’: John Kennedy Tells Larry Kudlow One Lie He Suspects China’s Telling US

    May 7, 2025
  • Finance

    Ending China’s De Minimis Exception Brings 3 Benefits for Americans

    April 17, 2025

    The Trump Tariff Shock Should Push Indonesia to Reform Its Economy

    April 17, 2025

    Tariff Talks an Opportunity to Reinvigorate the Japan-US Alliance

    April 17, 2025

    How China’s Companies Are Responding to the US Trade War

    April 16, 2025

    The US Flip-flop Over H20 Chip Restrictions 

    April 16, 2025
  • Tech

    Cruz Confronts Zuckerberg on Pointless Warning for Child Porn Searches

    February 2, 2024

    FTX Abandons Plans to Relaunch Crypto Exchange, Commits to Full Repayment of Customers and Creditors

    February 2, 2024

    Elon Musk Proposes Tesla Reincorporates in Texas After Delaware Judge Voids Pay Package

    February 2, 2024

    Tesla’s Elon Musk Tops Disney’s Bob Iger as Most Overrated Chief Executive

    February 2, 2024

    Mark Zuckerberg’s Wealth Grew $84 Billion in 2023 as Pedophiles Target Children on Facebook, Instagram

    February 2, 2024
  • More
    • Sports
    • Entertainment
    • Lifestyle
Patriot Now NewsPatriot Now News
Home»Finance»Raymond James Says These New Warren Buffett Stock Picks Have Double-Digit Upside Potential
Finance

Raymond James Says These New Warren Buffett Stock Picks Have Double-Digit Upside Potential

August 21, 2023No Comments7 Mins Read
Facebook Twitter Pinterest LinkedIn Tumblr Email
Raymond James Says These New Warren Buffett Stock Picks Have Double-Digit Upside Potential
Share
Facebook Twitter LinkedIn Pinterest Email

Sometimes identifying the best stocks to buy can be difficult, but you could do a lot worse than checking out the stocks selected by one of the world’s savviest hedge fund managers – Warren Buffett.

Buffett’s stock picks are a popular source of inspiration for investors, and for good reason. His formidable stock-picking ability has given him the nickname ‘the Oracle of Omaha’ and a fortune of ~$117 billion, making him one of the richest people in the world. His firm, Berkshire Hathaway, is also counted among the most successful, boasting total assets of over $1 trillion.

So obviously when Buffett goes shopping, investors are keen to find out what’s in the bag. During Q2, Buffett opened new positions in a few homebuilding stocks, and as he is known for his value investing style, he must think these names offer just that right now.

But it’s not just Buffett who likes the look of these particular equities. Raymond James analyst Buck Horne has also pinpointed an opportunity in these stocks, believing they are primed to deliver double-digit growth over the next year.

For a fuller view of their prospects, we decided to run these tickers through the TipRanks database. Here’s what we found.

D.R. Horton, Inc. (DHI)

The first stock Buffett is betting on is D.R. Horton, a Texas-based construction firm and a leader in the US homebuilding industry. The company has held the title of the ‘nation’s largest homebuilder’ for more than 20 years and operates in 113 residential markets across 33 states. D.R. Horton works on projects for both single-family homes and multi-family apartment complexes.

D.R. Horton has been building homes for 45 years, and has closed over 1 million building contracts in that time. The company has a portfolio of designs, featuring homes in all price brackets, from under $200,000 to over $1 million, and can even implement smart home technology from ground up during construction.

While the company holds a leading position in its industry, it has felt the effects of real estate headwinds. Earnings are down year-over-year for the past several quarters, even as revenues have showed y/y gains. This pattern continued in the recently reported results for Q3 of fiscal 2023. DHI had a top line of $9.7 billion, up 11% from the year-ago quarter, but the bottom line non-GAAP EPS of $3.90 was well below the 3Q22 figure of $4.67. That said, of greater import for investors, DHI beat the forecasts at both the top and bottom lines in Q3, with revenue coming in $1.31 billion above expectations and EPS beating by $1.07 per share.

See also  Stocks mixed as fresh inflation data shows more pickup: Stock market news today

Looking forward, DHI reported two important metrics that bode well for future business. First, it closed on 22,985 homes in Q3, a year-over-year increase of 8%, and the total value of those homes closures was up 4% y/y, to $8.7 billion. And, the company’s net sales orders were up an impressive 37% y/y, to 22,879 homes. The total value of the net sales orders was reported as $8.7 billion, for a 26% y/y increase. As such, the company raised its revenue outlook for the year, with the top-line now expected to hit the range between $34.7 billion to $35.1 billion compared to $31.5-$33 billion beforehand. Consensus had $32.34 billion.

As for Warren Buffett, his firm opened a new position in DHI during the calendar second quarter. Berkshire Hathaway disclosed total purchases of 5,969,714 shares of DHI, a major stock acquisition that is now worth about $700 million.

Turning to the Raymond James view, we find that analyst Buck Horne is impressed with D.R. Horton’s prospects for the next few quarters. He writes, “As it stands, we now see DHI on a path toward double-digit EPS growth and 20%+ ROIC metrics in FY24, most notably supported by a surging rental housing platform – which we think will significantly mitigate cyclical volatility associated with mortgage rates. With its pristine balance sheet primed for growth and acquisition opportunities, we believe DHI’s earnings visibility and profitability have improved to the point that investors should not be afraid of current valuations.”

Alongside these comments, Home gives DHI shares an Outperform (i.e. Buy) rating, with a price target of $160 that implies a one-year upside potential of ~36%. (To watch Home’s track record, click here)

See also  ‘Not The World People Are Living In’: James Carville Slams Biden’s Rosy Economic Messaging

Overall, DHI has picked up 15 recent Wall Street analyst reviews, and these include 10 Buys, 4 Holds, and 1 Sell to give the stock its Moderate Buy consensus rating. The shares are selling for $117.31 and the $144 average price target implies ~23% upside on the one-year horizon. (See DHI stock forecast)

Lennar Corporation (LEN)

The next Buffett choice we’re looking at is Florida-based Lennar Corp, another of the major homebuilders in the US. Lennar operates on the East Coast and Southeast, in the Great Lakes region, in Texas and Oklahoma, and in the West and West Coast regions. The company is perennially among the top 5 largest homebuilders in the country, counting by total home sales. Since its founding in 1954, Lennar has built more than 1 million homes.

The company controls a number of brands, that offer services in all aspects of the new-home industry. There are five brands operating on the construction side, while Lennar Mortgage, Lennar Title, and Lennar Insurance Agency provide the necessary financial services to make the homes available to buyers. Lennar has a long history of expanding its operations through acquisition, and currently works in 26 states.

In 2022, Lennar reported more than $33 billion in total revenues, but the company is not quite on track so far this year to meet that figure. In its 2Q23 report, Lennar showed a top line of $8.05 billion, down 3.7% y/y, although it should be noted that was some $810 million above the estimates. The company’s Q2 earnings, an EPS of $2.94 by non-GAAP measures, also beat the forecast – by 62 cents per share.

See also  SQ Stock: Square Plunges On Hindenburg Research Short Position, Claims

Lennar delivered 17,074 homes in Q2, and finished the quarter with new orders for 17,885 homes – worth a total of $8.2 billion. The company’s work backlog, an important metric for future business, was reported at 20,214 homes, valued at $9.5 billion.

Reflecting a new position for Buffett’s Berkshire Hathaway, the firm pulled the trigger on 152,572 shares in Q2. This stake in Lennar is currently valued at $17.85 million.

Also bullish on this stock, Raymond James’ Buck Horne is impressed by Lennar’s ability to maintain production.

“Combining targeted price reductions, incentives, and mortgage rate buydowns to keep home production flowing, despite mortgage rate volatility, Lennar has been able to identify the remarkable reservoir of pent-up housing demand much sooner than most… We find shares of LEN trading at 1.7x trailing book value and 9.5x our FY24 EPS, roughly in line with peer averages. As such, we think LEN shares remain worthy of a material valuation re-rating thanks to a 15%+ projected ROIC, double-digit EPS growth, and a net debt free balance sheet,” Horne opined.

Quantifying his stance, Horne goes on to rate LEN an Outperform (i.e. Buy), and he puts a $150 price target on the stock to show his confidence in a 28% gain on the 12-month horizon.

All in all, Lennar has picked up 16 recent analyst reviews, and these include 10 Buys, 4 Holds, and 2 Sells to give the stock its Moderate Buy consensus rating. The average price target of $134.40 and the current trading price of $117 together point toward ~15% one-year upside potential. (See Lennar stock forecast)

To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.

Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

Buffett DoubleDigit James Picks Potential Raymond stock Upside Warren
Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Posts

‘Oracle of Omaha’: Warren Buffett Announces Retirement, Confirms Successor

May 4, 2025

Ending China’s De Minimis Exception Brings 3 Benefits for Americans

April 17, 2025

The Trump Tariff Shock Should Push Indonesia to Reform Its Economy

April 17, 2025

Tariff Talks an Opportunity to Reinvigorate the Japan-US Alliance

April 17, 2025
Add A Comment

Leave A Reply Cancel Reply

Top Posts

Afghan Who Slashed Throat of Prostitute has Sentence Reduced

March 3, 2023

Growing evidence supports the protein leverage hypothesis as a significant mechanism driving obesity, study finds

September 4, 2023

Customers Feel ‘Emotionally Blackmailed’ over Tipping Prompt at Self Checkouts

May 9, 2023

BOJ to keep ultra-low rates, may debate fine-tuning yield cap

July 27, 2023
Don't Miss

Trump Announces First Post-Tariff Trade Deal

Business May 8, 2025

President Donald Trump announced Thursday the U.S. has reached a trade agreement with the U.K.,…

100 Funny Father’s Day Quotes for Hilariously Relatable Humor (and Plenty of Love Too)

May 8, 2025

Top 10 Benefits Of Acupuncture

May 8, 2025

Electric Vehicle Sales Nosedive As GOP Takes Buzzsaw To Biden’s Mandate

May 7, 2025
About
About

This is your World, Tech, Health, Entertainment and Sports website. We provide the latest breaking news straight from the News industry.

We're social. Connect with us:

Facebook Twitter Instagram Pinterest
Categories
  • Business (4,110)
  • Entertainment (4,220)
  • Finance (3,202)
  • Health (1,938)
  • Lifestyle (1,626)
  • Politics (3,084)
  • Sports (4,036)
  • Tech (2,006)
  • Uncategorized (4)
  • World (3,944)
Our Picks

China’s EV slowdown drags down Nvidia’s ‘next billion-dollar business’

August 25, 2023

PM Sunak Puts Deal with EU on NI on ‘Pause’ as Brexiteers Fight Sell-Out

February 22, 2023

China Launches Shenzhou-16 Mission To Chinese Space Station

May 30, 2023
Popular Posts

Trump Announces First Post-Tariff Trade Deal

May 8, 2025

100 Funny Father’s Day Quotes for Hilariously Relatable Humor (and Plenty of Love Too)

May 8, 2025

Top 10 Benefits Of Acupuncture

May 8, 2025
© 2025 Patriotnownews.com - All rights reserved.
  • Contact
  • Privacy Policy
  • Terms & Conditions

Type above and press Enter to search. Press Esc to cancel.