Warren Buffett, one of the world’s most successful investors, has once again revealed his top picks for 2025. Two companies that have caught his attention are Kraft Heinz (NASDAQ: KHC) and American Express (NYSE: AXP). Both stocks offer compelling opportunities for growth and stability in the coming year.
Kraft Heinz is a promising investment opportunity with a strong track record of steady growth. Despite trading at $30.77, which reflects a 19% decline year-to-date, the stock offers an attractive dividend yield of 5.19%. Its forward price-to-earnings (P/E) ratio of 10.18 is significantly below the sector average, making it a discount relative to peers.
The company’s core fundamentals remain strong, with $12.9 billion in revenue during the first half of 2024. Its iconic brands, such as Philadelphia Cream Cheese and Heinz Ketchup, continue to drive growth, albeit at a slower pace due to temporary challenges. However, improving macroeconomic conditions and rising consumer spending power could catalyze Kraft Heinz’s recovery.
On the other hand, American Express has consistently outperformed the broader market, with a 153% stock price increase over the past five years. The company’s strong cardholder spending, increased card fee revenue, and addition of new premium cardholders in 2024 have driven record revenue for 10 consecutive quarters.
American Express boasts an impressive economic moat, anchored by its premium branding, customer base, and unparalleled cardholder-merchant network. Its projected 2024 EPS of $13.75 to $14.05 represents a significant growth trajectory, making it an attractive proposition for investors seeking long-term growth potential.
Both stocks offer an attractive combination of stability and growth, making them ideal picks for investors looking to navigate volatility in 2025. With their focus on fundamental analysis and value investing, these companies are well-positioned to deliver sustained success in the coming year.
Source: https://finbold.com/2-no-brainer-warren-buffett-stocks-to-buy-into-2025-2