10 Best Warren Buffett Stocks with Upside Potential

#8 VeriSign, Inc. (NASDAQ:VRSN)

Stock Price as of October 28: $307.01

Average 12-Month Analyst Price Target: $352.00

Upside Potential: 14%

VeriSign operates critical internet infrastructure, including the registries for .com and .net domain names. Its business generates recurring revenue from domain registrations and renewals. Berkshire Hathaway owned approximately 9 million VeriSign shares valued at $2.26 billion at the end of the second quarter. The company’s established market position provides stability, although growth opportunities remain relatively limited. Berkshire first bought VeriSign in 2012 and has since cut its stake from a peak of 12.9 million shares to 8.9 million. See the full holding history.

VeriSign, Inc. earns a fee every year on each .com and .net name, and most companies keep their names for years. The business needs few new costs to handle more names, so extra revenue turns into profit at a high rate.

VRSN trades at a forward P/E of 32.24. That is 50.91% above the sector median of 21.36 and 10.55% above its own five-year average of 29.16.

#7 Ally Financial Inc. (NYSE:ALLY)

Stock Price as of October 28: $38.80

Average 12-Month Analyst Price Target: $47.47

Upside Potential: 22%

Ally Financial provides digital banking, automotive financing and other financial services. Its performance depends heavily on consumer credit conditions, interest rates and the automotive market. Berkshire Hathaway held approximately 27 million shares worth $1.24 billion at the end of June 2026. Berkshire reduced its Ally position during the second quarter, according to its regulatory filing. Ally ranks sixth on our list of the 10 best financial stocks to buy according to Warren Buffett, after it reported first-quarter adjusted earnings per share of $1.11, up 90% from a year earlier. Read what drove Ally’s quarter.

Ally Financial Inc. is a bank that focuses on auto loans. Ally processed a record 4.8 million auto loan applications in the third quarter, 20% more than a year earlier. Third-quarter adjusted earnings per share grew by double digits from a year earlier and beat Wall Street estimates. Bulls also point out that the stock trades below book value.

Evercore ISI cut Ally to In Line last month. Evercore says a partnership with Stellantis hurts the margin because used lease cars are worth less, and vehicle recalls make it worse. Ally took a loss on resold cars in the third quarter and expects more in the fourth quarter and in 2027. Higher interest rates also raise Ally’s deposit costs faster than its loan rates reset.

#6 Sirius XM Holdings Inc. (NASDAQ:SIRI)

Stock Price as of October 28: $27.32

Average 12-Month Analyst Price Target: $33.80

Upside Potential: 23%

Sirius XM operates subscription-based satellite radio and audio entertainment services, generating revenue primarily from subscribers and advertising. Berkshire Hathaway held approximately 124.8 million shares valued at $3.69 billion at the end of the second quarter. The business benefits from recurring subscription revenue, but competition from streaming platforms and pressure on subscriber growth remain important challenges. In September 2024, we ranked Sirius XM second on our list of the 8 best Warren Buffett stocks to buy according to analysts, when analysts saw 32.83% upside. See how that call looked then.

Sirius XM Holdings Inc. recently reported its third-quarter results, and bulls believe the company’s loyal subscriber base, strong cash flow, and low valuation make the stock attractive.

Bulls point to Sirius XM’s loyal customer base despite growing competition from Spotify and other streaming services. The company added 5,000 self-pay subscribers in the third quarter, bringing its year-over-year increase to 45,000. Average revenue per user remained relatively stable, while customer churn improved. Bulls believe these trends show that Sirius XM can retain its existing customers and generate steady cash flow even without rapid subscriber growth.

#5 Bank of America Corporation (NYSE:BAC)

Stock Price as of October 28: $50.85

Average 12-Month Analyst Price Target: $63.00

Upside Potential: 23%

Bank of America is one of the largest US banks, offering consumer banking, credit cards, wealth management and investment banking services. Berkshire Hathaway held approximately 483.4 million shares worth $27.54 billion at the end of the second quarter of 2026. The bank has been a longstanding Berkshire investment, although the company reduced its stake during the quarter. Bank of America ranks second on our list of the 10 best financial stocks to buy according to Warren Buffett, after first-quarter revenue grew 7.2% from a year earlier. Get the full Bank of America story.

Bank of America Corporation recently reported its third-quarter earnings, while its shares came under pressure following a regulatory fine and concerns about its financial results. Bulls believe the fine is a one-time setback that does not change the bank’s long-term earnings potential.

Their optimism is largely based on the bank’s lending business. Bank of America has continued to grow its loan portfolio, while its net interest yield has improved. This means the bank is earning more from its interest-earning assets relative to their costs, helping support net interest income.

Bulls also point to the bank’s large deposit base, which provides a relatively low-cost source of funding for loans. They believe continued loan growth, improving interest income, and the bank’s strong deposit position could help drive earnings higher over time.