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Top Warren Buffett Stocks To Buy For 2019

Is that stock you’re about to buy really right for you? That was the question Jim Cramer posed to his Mad Money viewers Friday, as he dedicated the entire show to the notion of suitability — finding stocks that aren’t right for this week or this month, but are right for you, given your age and temperament.

 

Suitability isn’t a concept that came naturally, Cramer said, as he reminisced about his early trading days. Doesn’t everyone want to make as much money as quickly as possible? Unlike buying a home or a car, which come with insurance, or other merchandise, which can be returned, stocks are a different animal.

 

Sure, you could buy a stock today that gets a huge takeover bid tomorrow, but you’re also just as likely to buy a stock today that gets a huge downgrade tomorrow.

 

That’s why it’s so important that you buy stocks that suit you, especially if you’re not one who follows the markets on a tick-by-tick basis. Stocks don’t have to be a caveat emptor (buyer beware) situation, Cramer concluded, but the buyer does have to be at least a little bit aware of what they’re committing their hard-earned dollars to before they pull the trigger.

Top Warren Buffett Stocks To Buy For 2019: New York Community Bancorp, Inc.(NYCB)

New York Community Bancorp (NYSE:NYCB) holds about $49.7 billion in assets and operates branches throughout metro New York City, as well as Arizona, Florida, and Ohio.

Like with many bank stocks that pay high dividends, investors should not buy NYCB stock in hopes of stock price growth. Both revenue growth and profit growth remain negligible. Its current PE ratio stands at about 12.5. Although the average PE hovers around 14.7, the stock could get there by declining profits just as easily as by stock growth.

Hence, investors should only buy for the 6.11% dividend yield. NYCB has maintained an annual dividend of 68 cents per share since 2016. This represents a cut from $1 per share per year, a level it had maintained for several years. However, with forecasted profits for 2018 at 81 cents per share, the current dividend of 68 cents per share places the bank on a more solid footing. Even with its lowered dividend, the dividend yield stands at an attractive level for income-oriented investors.

Top Warren Buffett Stocks To Buy For 2019: Fortuna Silver Mines Inc.(FSM)

 Fortuna Silver Mines Inc. (NYSE: FSM) is a Canadian silver mining company based in Vancouver, Canada.

The company operates two mines – one in Mexico and one in Peru – which produce a combined 8.4 million ounces of silver per year.

Over the last month, Fortuna’s stock has risen 17.8%, largely in response to increased demand for silver in the face of growing geopolitical uncertainty.

According to Money Morning Resource Specialist Peter Krauth, this instability is a key part to driving up the value of both silver and silver stocks.

"Geopolitics, stock markets, and central planners are helping to provide a floor for silver prices as uncertainties rise, stocks become volatile, and budget deficits explode," he says.

Analysts are calling for Fortuna to hit $9, as geopolitical conflict continues to stoke demand for silver. That’s a gain of over 53% from the stock’s current price of $5.86.

And with a VQScore of 4.75, you can bet that right now is an excellent time to buy.

But we have an even better penny stock to watch…

This company’s return on equity (ROE) – the amount of profit a company brings in based on the amount of money invested in the company – is over 400% higher than its industry’s average. This indicates that the company is well managed and has the potential for spectacular growth.

Top Warren Buffett Stocks To Buy For 2019: Comp En De Mn Cemig ADS(CIG)

Despite the ticker symbol, Companhia Energética de Minas Gerais (NYSE:CIG) has nothing to do with tobacco. Rather, it is one of Brazil’s largest utility companies.

Don’t let the $1.79 stock price confuse you, CIG’s share price doesn’t represent weakness. The company has a large outstanding share count, resulting in a $2.5 billion market cap to go along with roughly $7 billion in annual revenues. It leads Brazil in electricity distribution, and is among the top three utilities there in transmission and in generation.

What’s to like about CIG stock now? For one, it is down from a $2.60 peak in March to just $1.79 now. That sell-off has been driven by political troubles in Brazil and a sharp decline in their currency. Brazilian stocks, as a whole, are down close to a third since their January highs.

While macroeconomic fears are a concern for CIG stock, the company’s electricity business should fare better than most other Brazilian stocks in rough economic conditions.

The company is now selling at 13x trailing earnings, and earnings are expected to grow as Brazil continues to come out of an economic funk. On top of that, CIG stock paid 15 cents per share in dividends this year, amounting to an eye-catching 8% dividend yield. But please note that CIG pays a variable dividend, so there is no guarantee next year’s payment will be that large.

Regardless, there appears to be significant value compared to other utility stocks, especially with the stock selling well under book value. In addition, CIG stock could surge once investors want to buy back into Brazil.

Top Warren Buffett Stocks To Buy For 2019: Ferrari N.V.(RACE)

Top Growth Stocks: Ferrari (RACE)

Source: Shutterstock

 

Ferrari NV (NASDAQ:RACE) is the world-renowned Italian sports car maker. Founded by Enzo Ferrari, the company developed and built its first sports car back in the late 1940s.

Today, Ferrari offers seven vehicle models, including four sports cars (488 GTB, 488 Spider, F12 Berlinetta and special series F12 Tour de France) and three GT cars (California T, FF and GTC4Lusso). The company also plans to replace the F12 Berlinetta with the 812 Superfast coupe.

Demand for its cars continues to rise and its line of clothing and accessories is also growing at a brisk pack.

Ferrari expects to ship more than 9,000 vehicles in 2018 and is looking for revenues of 3.4 billion euros. Company management also noted that it expects to double core earnings to 2 billion euros ($2.5 billion) by 2022.

RACE stock is up nearly 30% year to date, so none of this trade war talk or political turmoil in Italian politics is slowing its performance.

Top Warren Buffett Stocks To Buy For 2019: Groupon, Inc.(GRPN)

Talk about a fall from grace! Yes, Groupon Inc (NASDAQ:GRPN) was a marker darling when it went public back in 2011, at a price of $28 per share. It has a honeymoon that didn’t last long at all though, with shares retreating into penny stock territory less than a year later … where it’s been stuck ever since.

And truth be told, Groupon shares deserved the beating they took. Not only was its pre-IPO growth rate not built to last, a host of competition has stepped up to the plate in the meantime. Net income peaked in 2012, and sales peaked in 2015.

The daily-deals company may have finally found a winning formula though, setting the stage for a better 2018 and beyond. Analysts say that while revenue is apt to fall another 7% this year, income is projected to improve from last year’s 11 cents per share to 19 cents per share. Next year, sales are expected to grow just a bit, and per-share profits are projected to reach 24 cents per share.

That may be all traders need to see to get this stock back in a nice uptrend.