In this article, we will take a look at the 10 Best Value Stocks to Buy in 2026 According to Warren Buffett.
When Warren Buffett stepped down as CEO of Berkshire Hathaway at the end of 2025, the company was holding a massive cash position. Berkshire reported more than $370 billion in cash equivalents at year-end, with much of it invested in Treasury bills.
Buffett’s challenge with cash management may not directly apply to most everyday investors. Still, his broader approach to handling cash closely matches what many financial advisors recommend to their clients. In his 2024 shareholder letter, Buffett said Berkshire Hathaway shareholders should remain confident that the company would continue investing most of its capital in equities, mainly in American businesses. He noted that many of those companies also operate extensively overseas.
Buffett also stressed that Berkshire would never prefer holding cash-equivalent assets over owning strong businesses, whether through full ownership or smaller equity stakes. Over the years, Buffett has repeatedly argued that inflation can erode the value of cash and bonds over time. In contrast, strong businesses are often in a better position to adjust during periods of monetary instability, as long as demand for their products and services remains steady.
Historical market performance has largely supported that view. Between 1975 and 2026, the S&P 500 delivered returns well above inflation over the long run. Buffett has consistently encouraged investors to put money regularly into low-cost, broadly diversified S&P 500 index funds instead of trying to predict short-term market swings. At the same time, he has acknowledged that no one can reliably forecast near-term market performance. The text also noted that financial advisors generally recommend maintaining an emergency cash reserve that covers three to six months of expenses. That cushion can help people handle unexpected financial situations without disrupting long-term investments.
Given this, we will take a look at the best value stocks according to Warren Buffett.
Our Methodology:
For this article, we scanned Berkshire Hathaway’s 13F portfolio, as of Q4 2025, and identified stocks with forward P/E ratios below 20. We picked companies that have recently reported noteworthy developments likely to impact investor sentiment. These companies are also popular among elite funds and analysts.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
10. Nucor Corporation (NYSE:NUE)
Berkshire Hathaway’s Stake Value: $1,045,167,939
Forward P/E: 18.08
On May 1, Seaport Research raised its price recommendation on Nucor Corporation (NYSE:NUE) to $245 from $185. It reiterated a Buy rating on the stock. The firm said it remains encouraged by Nucor’s long-term growth potential across market cycles, the analyst told investors.
On April 29, Citi also lifted its price target on Nucor to $260 from $180 while keeping a Buy rating on the shares. The firm updated its model following the company’s earnings report and said it remains bullish on Nucor. Citi noted that the company’s new capacity is accelerating returns.
During Nucor’s Q1 2026 earnings call, Chairman and CEO Leon Topalian said the company generated nearly $1.5 billion in EBITDA and reported earnings of $3.23 per share. He said the results showed a great improvement from the fourth quarter. Topalian also noted that Nucor returned $254 million to shareholders through dividends and share repurchases. At the same time, the company reinvested $661 million back into the business.
He added that steel mill shipments reached 7 million tons during the quarter, the highest quarterly shipment volume in Nucor’s history. According to Topalian, the company’s steel mills backlog ended the first quarter at 4.7 million tons. That figure was up 20% from year-end levels and marked the highest level since the second quarter of 2021.
Nucor Corporation manufactures steel and steel products and operates facilities across the United States, Canada, and Mexico. The company also produces and procures ferrous and non-ferrous materials mainly for use in its steel manufacturing business. Its operations are divided into steel mills, steel products, and raw materials segments.
9. Aon plc (NYSE:AON)
Berkshire Hathaway’s Stake Value: $1,271,424,876
Forward P/E: 16.53
On May 4, Piper Sandler raised its price recommendation on Aon plc (NYSE:AON) to $388 from $355. It reiterated an Overweight rating on the shares. The firm said quarterly revenue came in better than expected, while organic growth was mostly in line with consensus estimates, though slightly below its own expectations. Piper also noted that adjusted operating margin exceeded expectations, and the company reaffirmed its 2026 guidance. The firm said Aon delivered a solid quarter, with results holding up relatively well.
During Aon’s Q1 2026 earnings call, Executive Vice President and CFO Edmund Reese said the quarter reflected the strength and resilience of the company’s business model. He added that the results supported Aon’s long-term goal of delivering mid-single-digit or higher organic growth. Reese also discussed the company’s capital allocation strategy during the quarter. He said Aon took advantage of market conditions to repurchase $500 million worth of shares.
In addition, the company invested $349 million in high-growth tuck-in acquisitions within the middle-market segment. He also reaffirmed Aon’s full-year 2026 outlook, saying the company still expects to achieve mid-single-digit or higher organic revenue growth, along with 70 to 80 basis points of margin expansion for the year.
Aon plc (NYSE:AON) is a global professional services company. Its operations are divided into two segments: Risk Capital and Human Capital. The Risk Capital segment supports clients through its Commercial Risk and Reinsurance solution lines.
8. Domino’s Pizza, Inc. (NASDAQ:DPZ)
Berkshire Hathaway’s Stake Value: $1,396,347,000
Forward P/E: 16.95
On April 29, BofA analyst Sara Senatore lowered the firm’s price recommendation on Domino’s Pizza, Inc. to $445 from $496. It reiterated a Buy rating on the shares. The analyst said the firm reduced its Q2 EPS estimate due to softer topline trends, while its FY26 EPS estimate also moved lower following the weaker Q2 guidance and the company’s Q1 earnings miss. In a research note, the firm added that it expects Domino’s shares to trade largely in line with the broader market until investors gain more confidence in the company’s long-term growth algorithm. Even so, the firm said it still expects Domino’s to sustain that growth model over the medium to long term.
On April 28, RBC Capital analyst Logan Reich lowered the firm’s price target on Domino’s Pizza to $350 from $400 and kept a Sector Perform rating on the stock. The analyst said Domino’s Q1 results were challenging, with both top and bottom line figures coming in below consensus estimates. That result also led the company to lower its outlook, according to the research note. RBC added that it continues to view Domino’s as a high-quality company that is likely to keep gaining market share over time. At the same time, the firm said it remains on the sidelines because visibility into same-store-sales improvement through the rest of the year remains limited.
Domino’s Pizza, Inc. is a pizza company with a large business in both delivery and carryout. The company operates through three segments: U.S. stores, international franchise, and supply chain.
7. UnitedHealth Group Incorporated (NYSE:UNH)
Berkshire Hathaway’s Stake Value: $1,663,610,472
Forward P/E: 19.28
On May 5, UnitedHealth Group Incorporated (NYSE:UNH) announced that it is removing authorization requirements for 30% of healthcare services that previously needed insurer approval. The company said the move builds on several recent commitments aimed at making healthcare simpler and more affordable. It also said the changes are intended to improve transparency and accountability across the healthcare system.
UnitedHealthcare noted that prior authorization is currently required for only 2% of its medical services. Of the authorization requests submitted, around 92% are approved, with decisions taking less than 24 hours on average. The company also stated that, within Medicare Advantage, it has fewer prior authorization requirements than any other insurer.
By the end of 2026, UnitedHealthcare plans to eliminate another 30% of its remaining prior authorizations. The changes will include select outpatient surgeries, certain diagnostic tests such as echocardiograms, and some outpatient therapies and chiropractic care. The company said a full list of the affected services will be available on UHCProvider.com before the changes take effect.
UnitedHealth Group Incorporated is a healthcare and well-being company. Its business segments include Optum Health, Optum Insight, Optum Rx, and UnitedHealthcare. The UnitedHealthcare segment includes UnitedHealthcare Employer & Individual, UnitedHealthcare Medicare & Retirement, and UnitedHealthcare Community & State.
6. Capital One Financial Corporation (NYSE:COF)
Berkshire Hathaway’s Stake Value: $1,732,874,000
Forward P/E: 9.61
On April 22, Deutsche Bank lowered its price recommendation on Capital One Financial Corporation (NYSE:COF) to $250 from $256. It reiterated a Hold rating on the shares. The firm said the company’s expense growth outlook remains “cloudy” following its Q1 results.
The same day, BofA analyst Mihir Bhatia lowered the firm’s price target on Capital One to $234 from $236 while keeping a Buy rating on the stock. The analyst said Capital One delivered “quite solid” Q1 operating expense results. Still, net interest margin and credit provisions came in much weaker than expected and contributed to the earnings miss, according to the research note. Bhatia added that the firm remains constructive on Capital One over the long term as the company continues integrating its Discover and Brex acquisitions.
During Capital One’s Q1 2026 earnings call, Chief Financial Officer Andrew Young said the company earned $2.2 billion, or $3.34 per diluted common share, during the first quarter. He added that adjusted earnings per share came in at $4.42 after accounting for certain items. Young also noted that revenue declined 2% sequentially, while noninterest expenses fell 9% during the quarter.
He further stated that the company’s provision for credit losses remained relatively unchanged at $4.1 billion. According to Young, the figure included nearly $3.8 billion in net charge-offs, along with a $230 million increase in reserves. That brought the company’s total allowance balance to $23.6 billion.
Capital One Financial Corporation is a diversified financial services holding company with banking and non-banking subsidiaries. The company provides a wide range of financial products and services to consumers, small businesses, and commercial clients through multiple channels. Its business operates across three segments: Credit Card, Consumer Banking, and Commercial Banking.
5. DaVita Inc. (NYSE:DVA)
Berkshire Hathaway’s Stake Value: $3,608,147,375
Forward P/E: 11.14
On May 6, Deutsche Bank upgraded DaVita Inc. (NYSE:DVA) from Hold to Buy and raised its price target to $220 from $126.The upgrade followed the company’s first-quarter revenue per treatment of $417.59, which came in $8.30 above Wall Street estimates and reflected 4.4% year-over-year growth. Deutsche Bank said that of the $17.45 increase in revenue per treatment, around two-thirds came from core growth, while $6 was linked to favorable prior period development. The firm is using $411.59 as the baseline for projecting revenue per treatment growth in 2026. The firm also noted that the first quarter is usually the weakest period for revenue per treatment.
Sequential growth typically builds through the fourth quarter as deductible burn-through increases. Deutsche Bank expects that trend to continue through 2026 and into 2027. At the same time, the firm identified potential pressure from health insurance exchanges as one of the biggest risks tied to the upgrade, though it noted that DaVita has not experienced those effects so far.
During DaVita’s Q1 2026 earnings call, CFO and Treasurer Joel Ackerman said first-quarter adjusted operating income totaled $482 million. He also stated that adjusted earnings per share from continuing operations came in at $2.87. Ackerman added that free cash flow for the quarter reached $140 million.
CEO and Executive Director Rodriguez said the company was raising and narrowing its adjusted operating income guidance to a range of $2.15 billion to $2.25 billion. Rodriguez also noted that DaVita increased its adjusted EPS outlook to between $14.10 and $15.20 per share. According to Rodriguez, the higher guidance was mainly supported by a stronger volume forecast for the year and lower patient care costs.
DaVita Inc. is a healthcare provider focused on improving care delivery and quality of life for patients globally. The company provides kidney care services across the United States.
4. The Kraft Heinz Company (NASDAQ:KHC)
Berkshire Hathaway’s Stake Value: $7,896,644,337
Forward P/E: 10.94
The Kraft Heinz Company (NASDAQ:KHC) beat first-quarter sales estimates on May 6, as the ketchup maker showed early signs that turnaround efforts under new CEO Steve Cahillane were beginning to gain traction.
Cahillane, who paused plans to split the company into two shortly after taking over as CEO in January, pointed to the company’s 2025 investments aimed at reviving its U.S. sauces and condiments business. He also highlighted market share gains, which helped lift Kraft Heinz shares by around 2.7%.
Consumer goods companies around the world continue to face the risk of a fragile recovery in demand. Rising fuel costs tied to the Middle East conflict are adding to inflation pressures and could push companies toward more price increases. Cahillane said Kraft Heinz is well hedged against higher oil prices for 2026. Still, he warned that longer-term challenges could emerge if costs remain elevated. In prepared remarks, Cahillane said the company is increasing headcount, especially in marketing and sales. At the same time, Kraft Heinz plans to eliminate 400 roles outside North America through the year, according to an SEC filing. The company has around 35,000 employees overall.
Quarterly sales totaled $6.05 billion, ahead of the LSEG estimate of $5.89 billion. Earnings per share came in at 58 cents, topping analyst expectations of 50 cents per share. The company maintained its full-year targets, citing caution around the broader macroeconomic environment. Quarterly adjusted operating income fell 11.8% to $1.1 billion, affected by higher advertising spending, inflationary pressure in manufacturing, and other costs.
The Kraft Heinz Company manufactures and markets food and beverage products globally through eight consumer-focused product platforms: Taste Elevation, Easy Ready Meals, Substantial Snacking, Desserts, Hydration, Cheese, Coffee, Meats, and other grocery products.
3. Occidental Petroleum Corporation (NYSE:OXY)
Berkshire Hathaway’s Stake Value: $10,894,391,643
Forward P/E: 13.83
Occidental Petroleum Corporation (NYSE:OXY) reported its Q1 2026 earnings on May 6. During the earnings call, President, CEO, and Director Vicki Hollub announced that she would retire from her role as President and CEO on June 1. She also said the company’s board had approved Richard Jackson as her successor. Jackson, who currently serves as Senior Vice President and COO, said Occidental exceeded the upper end of its guidance in both the Oil and Gas and Midstream and Marketing segments during the first quarter. He added that the company produced 1.426 million barrels of oil equivalent per day during the period.
Speaking about the STRATOS project, Jackson said construction of Phase 2 had been completed. He noted that the company had identified an issue involving non-process components that was unrelated to the underlying technology. According to Jackson, Occidental is reviewing the repair timeline and assessing how the issue could affect the project’s operating schedule. Senior Vice President and CFO Sunil Mathew said the company generated adjusted earnings of $1.06 per diluted share during the first quarter, while reported earnings came in at $3.13 per diluted share. Mathew explained that the difference between the two figures was mainly due to gains tied to the OxyChem sale. He also stated that disruptions in the Middle East, along with strategic enhanced oil recovery actions, led Occidental to adjust the midpoint of its full-year production guidance to 1.44 million BOE per day.
At the same time, the company maintained its full-year capital spending outlook between $5.5 billion and $5.9 billion. Mathew added that strong performance so far in 2026 prompted Occidental to raise the midpoint of its full-year midstream guidance to $1.1 billion. That marked an increase of about $800 million from the guidance shared during the previous earnings call.
Occidental Petroleum Corporation is an international energy company with assets primarily located in the United States, the Middle East, and North Africa. The company produces oil and gas in the United States, including operations in the Permian Basin, DJ Basin, and the offshore Gulf of Mexico.
2. Chevron Corporation (NYSE:CVX)
Berkshire Hathaway’s Stake Value: $19,837,131,131
Forward P/E: 18.66
On May 6, Goldman Sachs raised its price recommendation on Chevron Corporation (NYSE:CVX) to $216 from $211. It reiterated a Buy rating on the stock. In a research note, the firm said Chevron continues to stand out for its strong free cash flow outlook, supported by its upstream assets and possible upside from Venezuela. The analyst also pointed to Chevron’s disciplined capital allocation, ongoing cost-saving efforts, strong balance sheet, and focus on production growth across international markets and the US. The firm added that efficiency initiatives continue to support the company’s long-term strategy.
During Chevron’s Q1 2026 earnings call, Chairman and CEO Michael Wirth said the company delivered solid results in the quarter, helped by consistent execution and the strength of its diversified portfolio. He highlighted strong performance across several areas of the business. US production topped 2 million barrels of oil equivalent per day during the quarter, while the Gorgon and Wheatstone LNG facilities operated at full capacity.
Wirth also noted that TCO production exceeded 1 million barrels of oil equivalent per day. At the same time, Chevron’s US refineries posted record crude throughput levels. Speaking about Venezuela, Wirth said Chevron recently completed an asset swap agreement with PDVSA that raised the company’s equity stake to 49%. He added that Venezuela is expected to contribute roughly 1% to 2% of Chevron’s cash flow from operations. CFO Eimear Bonner said Chevron reported first-quarter earnings of $2.2 billion, or $1.11 per share. Adjusted earnings came in at $2.8 billion, or $1.41 per share.
Chevron Corporation is an integrated energy company involved in oil and gas production, fuel manufacturing, lubricants, petrochemicals, and related technologies. The company operates through its Upstream and Downstream segments.
1. American Express Company (NYSE:AXP)
Berkshire Hathaway’s Stake Value: $56,088,378,465
Forward P/E: 18.51
On May 4, BofA said American Express Company is selling its remaining stake in American Express Global Business Travel (GBTG) for about $1.5 billion. The firm said the move supports American Express’ strategy of exiting non-core assets and sharpening its focus on its core card and network business. In a research note, BofA added that the transaction is expected to support earnings per share growth while also giving the company more flexibility for share buybacks and reinvestment into higher-return opportunities. The firm maintained a Buy rating and a $387 price target on American Express and described the deal as a positive development.
Also on May 4, The Wall Street Journal reported that American Express Global Business Travel is being taken private by Long Lake Management in an all-cash deal valued at $9.50 per share. The transaction values the company at around $6.3 billion. Amex GBT said the merger is expected to close in the second half of 2026. The company added that the deal was unanimously recommended by a special committee of independent directors and approved by its board.
Separately, American Express confirmed that it will sell its roughly 30% equity stake in Global Business Travel Group as part of the transaction. Once the deal closes, American Express expects to receive proceeds of about $1.5 billion and record a pre-tax gain of nearly $975 million. The company also said that the gain was not included in its previously issued 2026 earnings guidance.
American Express Company (NYSE:AXP) is a global payments and premium lifestyle brand powered by technology. Its card-issuing, merchant-acquiring, and card network businesses provide products and services to consumers, small businesses, mid-sized companies, and large corporations worldwide.
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