3 Stocks That Warren Buffett, Cathie Wood, and Wall Street All Like Right Now

Motley Fool2022-11-06 10:51

Amazon.com

+1.98%

Post

BYD Co., Ltd.

-0.49%

Red, white, and turquoise. Sausage, egg, and chocolate. Mickey Mouse, Donald Duck, and Wolverine. All three are unlikely trios.

I'll add another to the mix: Warren Buffett, Cathie Wood, and Wall Street analysts. They aren't on the same page very often. But that doesn't mean they don't have any areas of agreement. Here are three stocks that Buffett, Wood, and Wall Street all like right now.

1. Amazon

Berkshire Hathaway (BRK.A 0.75%) (BRK.B 1.27%) opened a position in Amazon (AMZN 1.88%) in 2019. Granted, it was other investment managers doing the buying rather than Buffett himself. However, Buffett clearly likes Amazon, referring to himself as an "idiot" for not buying the stock sooner.

Wood seems to be a budding admirer of Amazon as well. The stock ranks No. 15 among the holdings of her ARK Space Exploration & Innovation ETF (ARKX 1.25%). And Wall Street still loves Amazon. 43 of the 47 analysts surveyed by Refinitiv think the stock is either a buy or a strong buy.

However, many other investors appear to have soured on the e-commerce and cloud giant. Amazon's shares have plunged more than 40% year to date, with the company's weak fourth-quarter guidance especially causing concerns.

But there were several positives with Amazon's disappointing third-quarter update. The company's long-term prospects remain bright. Don't be surprised if Buffett, Wood, and Wall Street all prove to be right about the beaten-down stock.

2. BYD

Berkshire owns an 18.9% stake in Chinese electric vehicle (EV) maker BYD (BYDDY -0.49%). Wood's ARK Autonomous Technology & Robotics ETF (ARKQ 0.57%) owns a sizable position in the stock as well. And the average 12-month price target for BYD among analysts surveyed by Refinitiv reflects an upside potential of around 50%.

To be sure, Buffett's and Wood's enthusiasm levels about BYD appear to have waned somewhat. Berkshire and ARKQ have sold shares in recent months.

They're not alone. After rising more than 20% year to date by early July, BYD's shares have been in a virtual freefall, sinking over 40% from the peak.

The company should still have tremendous growth opportunities in the EV market. However, investors definitely have reasons to be leery about Chinese stocks right now.

3. General Motors

BYD isn't the only automotive stock that Buffett, Wood, and Wall Street like. General Motors (GM 1.27%) also appears to be in favor with the unlikely trio.

Berkshire currently owns around 3.7% of GM. Wood's ARKQ ETF owns more than 250,000 shares of the auto giant and added to its position in September. Only two of the 24 Wall Street analysts surveyed by Refinitiv think the stock will underperform. The consensus 12-month price target for GM is around 23% higher than the current share price.

The bad news for GM is that there's a lot of economic uncertainty. Inflation remains high. Interest rates continue to rise. Many expect that a recession is on the way. That's not a great picture for an automaker that depends on consumers' willingness and ability to make high-dollar purchases.

But there's a solid argument that now is a good time to buy GM stock. The company plans to aggressively ramp up its production of electric vehicles over the next several years. The current headwinds won't last forever. With GM's shares trading at only 6.4 times expected earnings, Buffett, Wood, and Wall Street just might have found a diamond in the rough.

source：Motley Fool