10 Best Warren Buffett Stocks with Upside Potential

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#4 Capital One Financial Corporation (NYSE:COF)

Stock Price as of October 28: $204.88

Average 12-Month Analyst Price Target: $256

Upside Potential: 25%

Capital One is a major consumer lender offering credit cards, banking products and auto financing. Its earnings are influenced by consumer spending, credit losses and interest rates. Berkshire Hathaway reported approximately 3 million Capital One shares worth $601.9 million at the end of June 2026. Berkshire substantially reduced its position during the second quarter. Capital One ranks fifth on the same list, and it narrowly missed first-quarter revenue estimates. Check the Capital One breakdown here.

Capital One Financial Corporation is a large US bank known for credit cards. It also makes auto loans and offers consumer banking. It bought Discover, a credit card company that runs its own payment network.  Before the deal, Capital One paid Visa and Mastercard fees on most of its card payments. Now more payments run over Discover’s network, so Capital One saves those fees and earns more on each transaction. It has already moved its debit cards over, and credit cards will take longer.

Capital One Financial Corporation trades at a forward P/E of 9.50. That is 13.73% below the sector median of 11.01 and close to its own five-year average of 9.33. The forward PEG ratio is 0.89 against 1.09 for the sector.

#3 DaVita Inc. (NYSE:DVA)

Stock Price as of October 28: $183.93

Average 12-Month Analyst Price Target: $231.00

Upside Potential: 25%

DaVita provides kidney dialysis services to patients with chronic kidney disease, primarily through its network of outpatient treatment centers. Berkshire Hathaway held approximately 28.9 million DaVita shares valued at $6.43 billion at the end of the second quarter. The company benefits from recurring demand for dialysis treatments, although reimbursement rates and operating costs remain significant considerations. Berkshire first disclosed its DaVita stake in the fourth quarter of 2011, and Deutsche Bank upgraded the stock to Buy in May after the first-quarter report. See how long Berkshire has held it.

While many chased the AI bandwagon this year, DaVita Inc. shares rose about 56%. DaVita runs kidney dialysis clinics across the US and abroad. Patients with kidney failure need regular treatments, so demand stays steady in any economy. Its Integrated Kidney Care business manages care for kidney patients under contracts, and management raised that unit’s 2026 profit target.

Treatment volume grew 1.2% in the third quarter, and management expects faster volume growth in 2027. DaVita starts a national rollout of expanded hemodialysis in November. It expects no material hit to profit in 2026 or 2027, and the benefit comes in the back half of 2028 and beyond.

DaVita trades at a forward P/E of 12.82. That is 35.70% below the sector median of 19.94 and close to its own five-year average of 13.06. The forward PEG ratio is 0.48 against 1.92 for the sector.

#2 Louisiana-Pacific Corporation (NYSE:LPX)

Stock Price as of October 28: $70.06

Average 12-Month Analyst Price Target: $88.11

Upside Potential: 25%

Louisiana-Pacific manufactures building materials, including engineered wood siding and oriented strand board used in residential construction. Its results depend on housing activity, renovation demand and building-material prices. Berkshire Hathaway held approximately 5.7 million shares worth $446 million at the end of June 2026. A recovery in residential construction could support demand for the company’s products. Louisiana-Pacific ranked ninth on our 2025 list of 12 growth stock picks by Warren Buffett. Check the growth stock list.

Louisiana-Pacific Corporation makes siding and oriented strand board (OSB) for homebuilding and remodeling. Its shares are down about 12% over the past year because the housing market is weak. Homes cost too much for many buyers, and the Federal Reserve just raised interest rates for the first time in three years. Fewer homes get built, so demand for OSB dropped and prices fell.

LP is the largest producer of engineered wood siding in North America. Siding prices rose 8% over the past year, even in a weak market, which shows the brand has pricing power. Much of the siding business sells into remodeling, and remodeling spending is expected to grow about 2.1% this year as owners stay in their homes and borrow against their equity.

The US population keeps growing, so the country needs more homes over time. When rates ease and buyers return, builders will need more OSB. That is the business that fell the most, so it has the most room to recover.

#1 Delta Air Lines, Inc. (NYSE:DAL)

Stock Price as of October 28: $80.35

Average 12-Month Analyst Price Target: $103.71

Upside Potential: 29%

Delta Air Lines is one of the largest US airlines, providing domestic and international passenger services. Its business benefits from demand for premium travel and corporate bookings, while fuel prices and operating costs remain risks. Berkshire Hathaway held approximately 57.3 million Delta shares worth $5.37 billion at the end of June 2026, increasing its position during the quarter. Delta’s revenue jumped 18.7% year over year in the second quarter, and Berkshire is its largest institutional shareholder, according to our look at the airline’s rally. See what risks come with the rally.

Delta Air Lines shares are up about 42% over the past year, even though fuel costs rose more than management expected and the company cut its 2026 earnings guidance. Bulls say travel demand stays strong. Third-quarter revenue grew 16%, and airlines are raising holiday fares to pass higher fuel costs to travelers. They also like the American Express partnership and the Hyatt partnership that launches later this year. Bears say higher inflation and interest rates could squeeze consumers and slow travel demand over the next few quarters. Free cash flow is already falling.

Delta trades at a forward P/E of 14.81, which is 24.63% below the sector median of 19.65. It is also 48.69% above its own five-year average of 9.96. The forward PEG ratio is 0.89 against 1.45 for the sector.

While we acknowledge the risk and potential of DAL as an investment, we believe certain AI infrastructure stocks offer far stronger long-term potential at a much more attractive entry point. If you are looking for an AI stock more promising than DAL that operates as a critical AI tollbooth and stands as the most important company in the world, check out our report about this must-own AI stock.

READ NEXT: 33 Stocks That Should Double in 3 Years and Cathie Wood 2026 Portfolio: 10 Best Stocks to Buy.

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