In this article, we will take a look at the 5 Best Value Stocks to Buy in 2026 According to Warren Buffett. For deeper discussion and analysis, read 10 Best Value Stocks to Buy in 2026 According to Warren Buffett.
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. (NYSE:DVA) 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 (NASDAQ:KHC) 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 (NYSE:OXY) 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 (NYSE:CVX) 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.
While we acknowledge the potential of AXP 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 AXP and that has 100x upside potential, check out our report about the cheapest AI stock.
READ NEXT: 10 Best Blue Chip Stocks to Invest In According to Billionaires and 10 Best Performing Dividend Stocks So Far in 2026
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
