5 Best Value Stocks in Warren Buffett’s Portfolio

4. U.S. Bancorp (NYSE:USB)

Berkshire Hathaway’s Stake Value: $7,514,279,000

Percentage of Berkshire Hathaway’s 13F Portfolio: 2.52%

Number of Hedge Fund Holders: 42

P/E Ratio: 11.60

U.S. Bancorp (NYSE:USB) is a Minnesota-based bank holding company that operates via its wholly owned subsidiary, U.S. Bank National Association, and offers banking, investment, mortgage, trust, and payment services to customers. As one of the best value stocks in Warren Buffett’s Q3 portfolio, U.S. Bancorp (NYSE:USB) represents 2.52% of the billionaire’s total investments. Berkshire Hathaway owns over 126 million U.S. Bancorp (NYSE:USB) shares, worth $7.51 billion. 

On December 9, UBS analyst Erika Najarian initiated coverage of U.S. Bancorp (NYSE:USB) with a Buy rating and a $70 price target, after the 300 basis points of ROTCE outperformance by the company. 

U.S. Bancorp (NYSE:USB), on October 14, reported its Q3 results, posting an EPS of $1.30, beating estimates by $0.14. The $5.86 billion revenue also exceeded estimates by $105.32 million. 

In Q3 2021, 42 hedge funds in the database of Insider Monkey were long U.S. Bancorp (NYSE:USB), up from 41 funds in the preceding quarter. Yacktman Asset Management is one of the leading stakeholders of U.S. Bancorp (NYSE:USB), holding a $279.3 million stake in the bank holding company. 

Here is what Mairs & Power has to say about U.S. Bancorp (NYSE:USB) in their Q4 2020 investor letter:

“On the negative side, one of the Fund’s biggest detractor in 2020 was U.S. Bancorp (USB). Like all banks, U.S. Bank was hurt by the difficult interest rate environment and credit cycle concerns. We believe banks are strong enough to survive the current sector doldrums, and they remain some of the market’s most attractive opportunities.”