In this article, we discuss the 12 Cheap Value Stocks to Buy Now According to Warren Buffett.
With a sheer focus on identifying undervalued companies with strong fundamentals, Warren Buffett, known as the world’s most successful investor, has accumulated a net worth of $142.7 billion through value investing. He set his road to wealth at a young age, with a strategy marked by early investments, reinvestment of profits, and a long-term outlook. After acquiring Berkshire Hathaway in 1965, Buffett turned the struggling textile company into a $1 trillion conglomerate. The company owns businesses like Dairy Queen and GEICO, along with a vast portfolio of publicly traded stocks. With investment principles such as “never lose money” and “buy businesses, not stocks”, Buffett has not only grown his personal fortune but also shaped his approach to identifying cheap value stocks.
Key drivers of his success have been Buffett’s focus on companies with steady revenue, strong profits, and active dividend schemes. Such stocks enabled the compounding of cash flow, fueling his company’s growth further. The success of Buffett’s strategic focus on sustainable growth and compounding returns is evident from the staggering returns seen in his company’s stock, translating a mere $500 investment in 1965 into a multi-million-dollar fortune.
With this backdrop, let’s jump to our list of the 12 Cheap Value Stocks to Buy Now According to Warren Buffett.
Our Methodology
To curate our list of the 12 Cheap Value Stocks to Buy Now According to Warren Buffett, we scanned Berkshire Hathaway’s investment portfolio to extract stocks trading with a forward price-to-earnings multiple of 20x, as of the time of writing. We ranked the shortlisted stocks in ascending order based on Berkshire Hathaway’s stake in them. We also considered hedge fund sentiment surrounding these stocks as of Q1 2025, using Insider Monkey’s hedge fund database that tracks over 1,000 hedge funds.
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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
12. Charter Communications, Inc. (NASDAQ:CHTR)
Forward Price-to-Earnings: 7.65
Berkshire Hathaway Stake Value: $731,258,969
Number of Hedge Fund Holders: 59
With a low price-to-earnings multiple and a significant presence in Warren Buffett’s investment portfolio, Charter Communications, Inc. (NASDAQ:CHTR) earns a spot on our list of the 12 Cheap Value Stocks to Buy Now According to Warren Buffett.
Charter Communications, Inc. (NASDAQ:CHTR) released its Q2 2025 earnings on July 25, 2025. The company’s EPS of $9.18 missed the expected EPS of $9.58. However, CHTR reported strong growth in its Mobile segment with the addition of 500,000 lines during the quarter and over 2.1 million over the past year. Accordingly, revenue increased by 0.6% YoY, while EBITDA rose 0.5%.
Meanwhile, Charter Communications, Inc. (NASDAQ:CHTR) reported challenges in its Broadband segment, which incurred subscriber losses due to higher non-pay churn among Affordable Connectivity Program customers. The company’s Video segment reported an improvement in the rate of customer losses, which stood at 80,000, compared to 408,000 in Q2 2024. New pricing and packaging options, along with a new programmer app inclusion packaging, resulted in lower churn rates during the quarter. The Small Business segment struggled, reporting a revenue decline of 0.6%.
In response to weaker-than-expected Q2 earnings, UBS, on July 28, reduced its price target on Charter Communications, Inc. (NASDAQ:CHTR) from $425 to $355. The investment firm adjusted its full-year growth expectations, forecasting a slight decline in the company’s revenue and a modest EBITDA growth. At the same time, Charter Communications, Inc. (NASDAQ:CHTR) is expected to experience a cash flow boost from the recent tax legislation.
With its Spectrum brand, Charter Communications, Inc. (NASDAQ:CHTR) offers mobile, internet, video, and voice services. It is included in our list of cheap value stocks to buy.
11. Ally Financial Inc. (NYSE:ALLY)
Forward Price-to-Earnings: 11.43
Berkshire Hathaway Stake Value: $1,057,630,000
Number of Hedge Fund Holders: 47
Ally Financial Inc. (NYSE:ALLY), with its low price-to-earnings multiple and significant presence in Warren Buffett’s investment portfolio, secures a spot on our list of the 12 Cheap Value Stocks to Buy Now According to Warren Buffett.
Maintaining a ‘Buy’ rating, Truist Securities, on July 25, 2025, increased its price target on Ally Financial Inc. (NYSE:ALLY) from $44 to $45. The investment firm’s price revision reflects the company’s strong second-quarter results.
Looking ahead, the analyst has raised its 2025 EPS estimate from $2.10 to $2.35. Alongside Truist, 10 other analysts raised their earnings estimate for Ally Financial Inc. (NYSE:ALLY). However, for 2026, Truist Securities reduced its EPS estimate from $5.65 to $5.50 due to expectations for lower net interest income from commercial floorplan assets.
Ally Financial Inc. (NYSE:ALLY), a digital financial services provider, offers banking products, including auto finance, mortgage finance, and online savings accounts. It is included in our list of cheap value stocks to buy.
10. Capital One Financial Corporation (NYSE:COF)
Forward Price-to-Earnings: 14.03
Berkshire Hathaway Stake Value: $1,281,995,000
Number of Hedge Fund Holders: 93
With a low price-to-earnings multiple and a significant presence in Warren Buffett’s investment portfolio, Capital One Financial Corporation (NYSE:COF) earns a spot on our list of the 12 Cheap Value Stocks to Buy Now According to Warren Buffett.
Capital One Financial Corporation (NYSE:COF) released its Q2 2025 results on July 22, 2025. While the company posted a net loss of $4.3 billion, its adjusted earnings amounted to $2.8 billion, reflecting strong operational performance. Meanwhile, the net loss was attributed to the impact of the Discover acquisition. The company’s revenue increased due to the partial-quarter contribution from Discover. On the other hand, pre-provision earnings increased by 34%. COF’s management expects strong long-term potential of the acquisition.
Meanwhile, two days later, Citigroup raised its price target from $250 to $275, reinforcing the management’s view of the company’s long-term prospects. Previously, on July 11, 2025, JPMorgan had also increased its target on Capital One Financial Corporation (NYSE:COF) from $210 to $245. The analyst attributed the price revision to a reduced risk of ‘left-tailed scenarios’ and improved long-term growth prospects.
Capital One Financial Corporation (NYSE:COF), a diversified bank serving consumers and small businesses, offers credit cards, auto loans, banking, and savings products. It is included in our list of cheap value stocks to buy.
9. Constellation Brands, Inc. (NYSE:STZ)
Forward Price-to-Earnings: 13.76
Berkshire Hathaway Stake Value: $2,203,891,680
Number of Hedge Fund Holders: 44
Constellation Brands, Inc. (NYSE:STZ), with its low price-to-earnings multiple and significant presence in Warren Buffett’s investment portfolio, secures a spot on our list of the 12 Cheap Value Stocks to Buy Now According to Warren Buffett.
Constellation Brands, Inc. (NYSE:STZ) reported Q1 2025 earnings on July 1, 2025. The company missed Wall Street’s expectation of $3.57 per share EPS, reporting $3.22 per share, driven by softer organic sales growth, particularly in the beer segment. The sales decline was attributed to macroeconomic challenges and volume declines across key brands. Meanwhile, the company reported net sales of $2.52 billion, a 6% decrease YoY. The beer segment reported a 2% decline in sales.
Looking ahead, Constellation Brands, Inc. (NYSE:STZ) maintains its fiscal year guidance. It forecasted an adjusted EPS range of $12.60 to $12.90. The company remained resilient during the quarter, reporting a solid gross profit margin of 49.64% and repurchasing $381 million in shares. It also declared a quarterly dividend of $1.02 per share.
Two days later, UBS raised its price target on Constellation Brands, Inc. (NYSE:STZ) from $195 to $205, maintaining a ‘Buy’ rating. While acknowledging the company’s weaker quarter, the analyst remains optimistic about its long-term growth prospects. UBS projected low-single-digit top-line growth and mid-single-digit bottom-line growth over the long term.
Constellation Brands, Inc. (NYSE:STZ) is a global producer of beer, wine, and spirits. It is included in our list of cheap value stocks to buy.
8. Sirius XM Holdings Inc. (NASDAQ:SIRI)
Forward Price-to-Earnings: 8.18
Berkshire Hathaway Stake Value: $2,700,365,521
Number of Hedge Fund Holders: 48
With a low price-to-earnings multiple and a significant presence in Warren Buffett’s investment portfolio, Sirius XM Holdings Inc. (NASDAQ:SIRI) earns a spot on our list of the 12 Cheap Value Stocks to Buy Now According to Warren Buffett.
Citing a stable ad and auto outlook that reduces short-term cyclical risk, Morgan Stanley, on July 16, 2025, raised its price target on Sirius XM Holdings Inc. (NASDAQ:SIRI) from $21 to $22. The investment firm maintained an ‘Underweight’ rating. However, the analyst believes that more compelling opportunities exist elsewhere within the telecom and cable markets. Furthermore, Morgan Stanley expressed caution about the persistent secular pressures and the unchanged path to deleveraging.
Meanwhile, two weeks later, on July 30, Sirius XM Holdings Inc. (NASDAQ:SIRI) finalized a multi-year agreement with ‘Morbid,’ a popular true crime podcast. SIRI is set to join its industry-leading Podcast Network on September 1, 2025. Morbid’s popularity has risen substantially within the true crime genre. With this deal, Sirius XM Holdings Inc. (NASDAQ:SIRI) has acquired exclusive distribution and ad sales rights for the podcast’s video and audio versions, strengthening its top-tier podcast portfolio.
Previously, on July 23, 2025, Sirius XM Holdings Inc. (NASDAQ:SIRI) declared a quarterly dividend of $0.27 per share, which is payable on August 27, 2025.
Sirius XM Holdings Inc. (NASDAQ:SIRI), a satellite radio company, offers entertainment, news, sports, and music content in North America. It is included in our list of cheap value stocks to buy.
7. The Kroger Co. (NYSE:KR)
Forward Price-to-Earnings: 14.6
Berkshire Hathaway Stake Value: $3,384,499,999
Number of Hedge Fund Holders: 64
The Kroger Co. (NYSE:KR), with its low price-to-earnings multiple and significant presence in Warren Buffett’s investment portfolio, secures a spot on our list of the 12 Cheap Value Stocks to Buy Now According to Warren Buffett.
Barclays, on July 21, 2025, initiated coverage on The Kroger Co. (NYSE:KR) with an ‘Equal Weight’ rating and a $90 price target. This revision is attributed to potential improvement in identical stores’ sales through 2025/26, competitor store closures, simplified promotions, and price investments. The investment firm also cited the company’s consistently strong shareholder returns. KR has maintained 19 consecutive years of dividend increases, with a current dividend yield of 2.02%.
Furthermore, Barclays emphasized potential opportunities from net store growth and the ramping of Express Scripts in FY26. The Kroger Co. (NYSE:KR) struck a deal with Express Scripts, a pharmacy benefit services business. With this deal, Express Scripts’ customers will have access to prescription medication and health services at Kroger Family of Pharmacies.
However, Barclays remains wary of growing competition and consumer trade-down, alongside a full valuation. The investment firm projected a 2025 EPS estimate of $4.74 (below the consensus of $4.78) and a 2026 EPS estimate of $5.27 (in line with the consensus of $5.22).
Offering grocery, health, and consumer products with various brands and stores, The Kroger Co. (NYSE:KR) is among the largest supermarket chains in the U.S. It is included in our list of cheap value stocks to buy.
6. DaVita Inc. (NYSE:DVA)
Forward Price-to-Earnings: 13.59
Berkshire Hathaway Stake Value: $5,375,745,012
Number of Hedge Fund Holders: 43
With a low price-to-earnings multiple and a significant presence in Warren Buffett’s investment portfolio, DaVita Inc. (NYSE:DVA) earns a spot on our list of the 12 Cheap Value Stocks to Buy Now According to Warren Buffett.
DaVita Inc. (NYSE:DVA) reported strong Q1 2025 results on May 12, 2025. The company beat earnings estimates with an EPS of $2.00 (versus $1.75 expected), driven by strong results in patient care costs, phosphate binders, and the international segment. The severe flu season impacted the company’s treatment volume. Yet, it maintained a solid performance, allowing it to announce $680 million in share repurchases.
Despite a strong Q1 performance, Truist, on May 19, 2025, reduced its price target on DaVita Inc. (NYSE:DVA) from $170 to $164. Citing a mixed short-term outlook, the investment firm noted slower organic volume trends and secular pressures. Accordingly, Truist reduced its 2025 EPS estimate from $4.78 to $4.74, while maintaining the 2026 estimate in line with consensus. The analyst remains positive about the company’s dialysis business and long-term integrated care potential.
Ahead of upcoming Q2 earnings release, Zacks, on July 22, 2025, projected a 4.25% YoY increase in DaVita Inc. (NYSE:DVA)’s EPS, raising it to $2.70. Additionally, the investment research firm expects a 3.50% increase in DVA’s revenue, which would translate to $13.48 billion in revenue. Meanwhile, Zacks projects earnings and revenue to grow 11.16% and 5.15%, respectively, in 2025. The analyst keeps a ‘Hold’ rating on DVA.
Operating across the U.S. and the rest of the world, DaVita Inc. (NYSE:DVA) offers kidney dialysis and related services. It is included in our list of cheap value stocks to buy.
5. Chubb Limited (NYSE:CB)
Forward Price-to-Earnings: 12.39
Berkshire Hathaway Stake Value: $8,163,932,430
Number of Hedge Fund Holders: 55
Chubb Limited (NYSE:CB), with its low price-to-earnings multiple and significant presence in Warren Buffett’s investment portfolio, secures a spot on our list of the 12 Cheap Value Stocks to Buy Now According to Warren Buffett.
On July 24, 2025, Wells Fargo reduced its price target on Chubb Limited (NYSE:CB) from $285 to $267, maintaining an ‘Equal Weight’ rating. The investment firm expects future margin pressure, driven by concerns over the company’s shift to casualty insurance and share price decline. Chubb’s share price is down 3.54% so far in 2025. The analyst also holds bearish sentiment surrounding the company’s property concentration.
Four days later, UBS raised its price target on Chubb Limited (NYSE:CB) from $292 to $304, keeping a ‘Neutral’ rating. However, Piper Sandler, on July 24, 2025, downgraded CB from ‘Neutral’ to ‘Overweight’, also decreasing its target from $335 to $283. This downgrade comes amid a softening insurance market and competitive pricing pressures.
Chubb Limited (NYSE:CB), a global insurance company, offers property and casualty insurance, life insurance, and reinsurance services. It is included in our list of cheap value stocks to buy.
4. The Kraft Heinz Company (NASDAQ:KHC)
Forward Price-to-Earnings: 10.99
Berkshire Hathaway Stake Value: $9,909,067,512
Number of Hedge Fund Holders: 46
With a low price-to-earnings multiple and a significant presence in Warren Buffett’s investment portfolio, The Kraft Heinz Company (NASDAQ:KHC) earns a spot on our list of the 12 Cheap Value Stocks to Buy Now According to Warren Buffett.
The Kraft Heinz Company (NASDAQ:KHC) released its Q2 2025 results on July 30, 2025. The company reported net sales of $6.4 billion, a 1.9% decline. Likewise, organic net sales also decreased by 2% due to weaker performance of the cold cuts, coffee, and frozen snacks segments. Furthermore, non-cash impairment losses of $9.3 billion resulted in operating income of $8 billion. Meanwhile, adjusted operating income reached $1.3 billion, a 7.5% decrease.
Despite the decline in sales and profitability, The Kraft Heinz Company (NASDAQ:KHC) reported a 28.5% YoY increase in its free cash flow, raising it to $1.5 billion. Looking ahead, the company confirmed its FY 2025 guidance. While KHC expects its organic net sales and adjusted operating income to fall, it forecasts a solid outlook for adjusted EPS in the range of $2.51 to $2.67.
Maintaining its commitment to shareholder returns, The Kraft Heinz Company (NASDAQ:KHC), on July 30, 2025, declared a quarterly dividend of $0.40 per share, which is payable on September 26, 2025.
The Kraft Heinz Company (NASDAQ:KHC), a global food and beverage leader, offers a diverse range of products. It is included in our list of cheap value stocks to buy.
3. Occidental Petroleum Corporation (NYSE:OXY)
Forward Price-to-Earnings: 19.38
Berkshire Hathaway Stake Value: $13,077,509,034
Number of Hedge Fund Holders: 59
Occidental Petroleum Corporation (NYSE:OXY), with its low price-to-earnings multiple and significant presence in Warren Buffett’s investment portfolio, secures a spot on our list of the 12 Cheap Value Stocks to Buy Now According to Warren Buffett.
On July 15, 2025, JPMorgan increased its price target on Occidental Petroleum Corporation (NYSE:OXY) from $47 to $48, maintaining a ‘Neutral’ rating. The investment firm expects Q2 2025 performance of the company to be weaker-than-expected. Accordingly, the analyst forecasted earnings per share (EPS) of $0.24, below the Street estimate of $0.34. Furthermore, the analyst projected cash flow per share of $2.36, 6% below consensus. Due to a reduction in the company’s production volume caused by extended facility maintenance and timing delays, the analyst forecasted production volumes of 1,394 Mboe/d, slightly missing estimates. Meanwhile, JPMorgan expects the company’s OxyChem segment to fall short of guidance and the midstream segment to show improved performance.
Two days later, Piper Sandler also increased its price target on Occidental Petroleum Corporation (NYSE:OXY) from $48 to $50, maintaining a ‘Neutral’ rating. The analyst remains cautious about the oil and gas sector amid a volatile pricing environment and high supplies. However, Piper Sandler expects strong long-term gas demand.
With a significant presence in North America, the Middle East, and Latin America, Occidental Petroleum Corporation (NYSE:OXY) is an international oil and gas company. It is included in our list of the cheap value stocks to buy.
2. Chevron Corporation (NYSE:CVX)
Forward Price-to-Earnings: 18.9
Berkshire Hathaway Stake Value: $19,842,356,232
Number of Hedge Fund Holders: 81
With a low price-to-earnings multiple and a significant presence in Warren Buffett’s investment portfolio, Chevron Corporation (NYSE:CVX) earns a spot on our list of the 12 Cheap Value Stocks to Buy Now According to Warren Buffett.
On July 18, 2025, Chevron Corporation (NYSE:CVX) finalized its acquisition of Hess Corporation. With this acquisition, the company has acquired assets in Guyana, the Bakken share, and Southeast Asia, strengthening its portfolio. Furthermore, CVX now also holds a 30% stake in the Stabroek Block, home to over 11 billion barrels of oil equivalent. Looking ahead, the energy giant expects to generate $1 billion in annual run-rate cost synergies by the end of 2025.
Meanwhile, on July 23, 2025, Wells Fargo increased its price target for Chevron Corporation (NYSE:CVX) from $165 to $178, maintaining an ‘Overweight’ rating. The investment firm cites strong long-term growth prospects driven by the Hess acquisition. Likewise, on July 17, 2025, Scotiabank increased its target to $160 from $143.
Operating across all aspects of the industry, Chevron Corporation (NYSE:CVX) is a global integrated energy company. It is included in our list of cheap value stocks to buy.
1. Bank of America Corporation (NYSE:BAC)
Forward Price-to-Earnings: 13.11
Berkshire Hathaway Stake Value: $26,355,563,449
Number of Hedge Fund Holders: 117
Bank of America Corporation (NYSE:BAC), with its low price-to-earnings multiple and significant presence in Warren Buffett’s investment portfolio, secures a spot on our list of the 12 Cheap Value Stocks to Buy Now According to Warren Buffett.
On July 16, 2025, Bank of America Corporation (NYSE:BAC) released its Q2 2025 results. The company exceeded analysts’ earnings per share (EPS) expectations of $0.86, reporting $0.89. A YOY revenue increase of 4% helped the company achieve $26.6 billion in revenue. Solid organic growth across its business segments drove this growth.
Meanwhile, Bank of America Corporation (NYSE:BAC) reported a record $14.8 billion in net interest income (NII), a 7% increase from the previous year. Operating income, on the other hand, was $7.1 billion, generating a return on tangible common equity of 13.4%. At the same time, the bank maintained a strong capital return strategy with a $5.3 billion share repurchase.
However, the following day, Oppenheimer reduced its price target on Bank of America Corporation (NYSE:BAC) from $57 to $55, maintaining an ‘Outperform’ rating. The analyst attributed the target reduction to weaker-than-expected performance of the company in Q2 2025. However, the investment firm believes the bank is well-placed for strong future growth.
Bank of America Corporation (NYSE:BAC) offers consumer banking, wealth management, and investment banking services. It is included in our list of the cheap value stocks to buy.
While we acknowledge the potential of BAC to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than BAC and that has 100x upside potential, check out our report about this cheapest AI stock.
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