Warren Buffett’s 5 Stock Picks with Huge Upside Potential

4. Kroger Co (NYSE:KR)

Berkshire Hathaway Holding: $2.24 billion

Upside Potential: 17%

In Kroger Co (NYSE:KR), Buffett’s fund has amassed 50 million shares, according to Berkshire’s latest 13F filing. The supermarket operator has recently reported its earnings for the fiscal third quarter, which included revenue of $33.96 billion and EPS of $0.95, both slightly above estimates. Kroger Co (NYSE:KR) also cut its full-year identical sales estimates to between 0.6% and 1% from the previous guidance between 1% and 2%. During the earnings call, CEO Rodney McMullen and CFO Gary Millerchip highlighted digital sales as a tailwind for Kroger Co (NYSE:KR).

“However, unit growth rates have lagged the rate of inflation decline and have not improved at the pace we would have expected,” Millerchip added.

Overall, Kroger Co (NYSE:KR) saw a slight decrease in popularity among hedge funds, with 41 investors holding $3.05 billion worth of stock at the end of September, versus 43 funds and $3.14 billion a quarter earlier.