Warren Buffett's investing skill may be inimitable. His choicest picks have been resounding winners like Apple and Amazon.com. But he has also been indifferent to several high-octane stocks like Tesla.
The Oracle of Omaha hasn't written a book revealing his rules of investing, but this seems certain: The seasoned investor picks stocks with a long history of growth, potential for continued growth and strong fundamentals. That may not seem like a very demanding requirement but, really, few stocks pass that metric.
By putting that investing principle in place, IBD MarketSurge's Warren Buffett screen identifies the companies that best fit his approach. Coupled with MarketSurge's chart tools, the screen can identify entries for investors. These stocks are not holdings in Warren Buffett's Berkshire Hathaway.
Three Stocks Show Warren Buffett Stock Traits
Chipotle Mexican Grill has formed a three-weeks-tight formation and is on track to add another week to it. The buy point is 3,023.98. Sales and earnings have grown steadily over the past eight quarters, earning it a 97 EPS Rating and A SMR Rating (sales+margins+ROE).
That circles back to Warren Buffett's emphasis on picking companies that show superior management, and where the growth story is likely to continue. For 2024, analysts expect 19% growth in profits and 21% in 2025. First-quarter results are due out on April 24.
This week, Citibank and KeyBank raised their price targets on the stock.
Arista Networks is hovering just below a 292.66 entry in a flat base. The stock has also been proving its mettle and holds an EPS Rating of 98.
Earnings estimates suggest 8% growth in 2024 and 14% in 2025. First-quarter results are due May 7.
SAIA is forming a flat base with a buy point at 628.34. In addition, the stock formed a four-weeks-tight pattern with a 600.31 buy point.
Sales and earnings accelerated in the fourth quarter, and since the EPS Rating places higher emphasis on recent profitability, the trucking and logistics company holds a 93 rating.
Growth estimates look good too, with 23% EPS forecast in 2024 and 21% in 2025. SAIA is a holding in the IBD Leaderboard model portfolio and fulfills Warren Buffett's fundamental investing rule.
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