Warren Buffett’s Latest Portfolio: 5 Undervalued Stock Picks

In this article, we discuss 5 undervalued stock picks in Warren Buffett’s latest portfolio. If you want to read our discussion on Buffett’s recent investment decisions, go directly to Warren Buffett’s Latest Portfolio: 10 Undervalued Stock Picks.

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

Number of Hedge Fund Holders: 40

1-Year Forward P/E Ratio: 11.05x

Warren Buffett’s Berkshire Hathaway’s Holdings: $5,513,432,000

Percentage of Warren Buffett’s Berkshire Hathaway’s Portfolio: 1.83%

U.S. Bancorp (NYSE:USB) is a Cincinnati, Ohio-based consumer bank that happens to be the fifth-biggest banking institution in the U.S.

Against its five-year average forward P/E ratio of 12.9x, U.S. Bancorp (NYSE:USB) stock is trading at a discount of almost 13%. Furthermore, U.S. Bancorp (NYSE:USB) shares offer an attractive forward dividend yield of 3.88% as of August 25.

Experts believe that the bank is operated conservatively and has the ability to report above-average growth in loans and interest income even in an uncertain economic environment. U.S. Bancorp (NYSE:USB) anticipates a strong loan pipeline during the second half of the year as companies seek to fulfill their working capital requirements. Furthermore, the completion of the Union Bank acquisition during the last months of 2022 will provide synergy benefits in 2023.

ClearBridge Investments shared its stance on U.S. Bancorp (NYSE:USB) in its Q4 2021 investor letter. Here’s what the firm said:

“Over the last year, we have repositioned our portfolio to navigate the course we see ahead. We have increased our exposure to interest-rate sensitive banks by adding to existing positions in U.S. Bancorp.”