American Express and Kraft Heinz: No-Brainer Stocks for 2025
Why American Express and Kraft Heinz are Strong Picks
As 2024 comes to a close, Warren Buffett's investment approach reflects a strategy centered on finding companies with robust financial performance and potential for growth. Among the standout selections are Kraft Heinz and American Express, which not only show significant resilience but also align perfectly with Buffett's philosophy.
Kraft Heinz: A Turnaround Opportunity
Kraft Heinz (NASDAQ: KHC) is currently priced at $30.77, having experienced a 19% decline this year. However, it remains a core investment in Buffett's portfolio, holding 326 million shares worth approximately $10 billion.
- P/E Ratio: 10.18, indicating an attractive valuation compared to sector peers.
- Dividend Yield: 5.19%, appealing for income-focused investors.
- Despite current challenges, the fundamentals remain strong with revenues of $12.9 billion reported in H1 2024.
American Express: A Growth Machine
American Express (NYSE: AXP), with a market cap of $214 billion, has demonstrated remarkable growth, exemplifying qualities that Buffett endorses. Its stock has surged 153% over the past five years.
- 10 consecutive quarters of record revenue driven by increased cardholder spending.
- Projected EPS growth of 75% since 2019.
- Competitive P/E ratio of 21.3 compared to the S&P 500.
Overall, both American Express and Kraft Heinz are key players for investors aiming for stable growth and long-term potential as we head into 2025.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.