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James Li
James Li
Articles (755)  | Author's Website |

2 Warren Buffett Stocks Trading Near 52-Week Lows

Stocks trading near annual lows include Kraft Heinz

March 08, 2019 | About:

According to current portfolio information, two of Berkshire Hathaway Inc. (NYSE:BRK.A)(NYSE:BRK.B) CEO Warren Buffett (Trades, Portfolio)’s holdings have reached close to their 52-week lows: The Kraft Heinz Co. (NASDAQ:KHC) and DaVita Inc. (NYSE:DVA).

Kraft Heinz

Kraft Heinz, Buffett’s sixth-largest holding as of December 2018, set a new 52-week low of $31.64 on Feb. 22. On Friday, the stock opened at $31.69, approximately 0.158% above its 52-week low.

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The food and beverage manufacturer known for products like Kraft Cheese and Heinz Ketchup tumbled over 28% on weaker-than-expected results for fourth-quarter 2018 and a subpoena from the U.S. Securities and Exchange Commission regarding the company’s procurement area. On Feb. 28, Kraft Heinz said in a press release it will not file its 10-K by the prescribed due date because of interim impairment testing. Management listed several reasons why the fair value of certain reporting units and indefinite-lived intangible assets are possibly less than their carrying value, which include sustained decrease in share price during the final two months of 2018.

GuruFocus listed two severe warning signs for Kraft Heinz: increasing long-term debt over the past three years and a three-year revenue decline rate of 11.10%, which underperforms 85% of global packaged foods companies.

Other gurus with holdings in Kraft Heinz include Jim Simons (Trades, Portfolio), Joel Greenblatt (Trades, Portfolio) and Pioneer Investments (Trades, Portfolio).

DaVita

DaVita, a major operator of kidney dialysis centers, opened at $50.16, approximately 3.96% above its 52-week low of $48.25.

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The Denver-based company said on Feb. 13 that revenues for the fourth quarter were $2.821 billion. For the year, earnings of 92 cents per share represented a $2.55-per-share decline from 2017.

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GuruFocus ranks the company’s profitability 7 out of 10: even though the three-year revenue growth rate of 12.80% underperforms 78% of global competitors, DaVita’s operating margin has increased approximately 1.20% per year over the past five years and is outperforming 78% of global competitors.

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Other gurus with holdings in DaVita include Andreas Halvorsen (Trades, Portfolio) and Steven Cohen (Trades, Portfolio).

See also

We are pleased to announce we have launched updated versions of all of our predefined screener pages, which include the Ben Graham Net-net screen, the Undervalued Predictable screen and the Buffett-Munger screen.

Premium members have access to all of our screens, including the All-in-one Screener that allows you to customize your own investing strategy. We have launched an updated version of the Screener as well.

Disclosure: No positions.

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About the author:

James Li
I am an editorial assistant and researcher at GuruFocus. I have a Master's in Finance from SMU, and I enjoy writing reports on financial trends and investor portfolios. Follow me on Twitter at @JamesLiGuru!

Visit James Li's Website


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