We recently published a list of 10 Best Safe Stocks To Buy According to Analysts. In this article, we are going to take a look at where Berkshire Hathaway Inc. (NYSE:BRK-B) stands against other best safe stocks to buy according to analysts.
Market Will End 2024 Positively, Strategist Says
Statistically, November and December tend to be great months for stocks. However, with the economic turmoil in question, will stocks end the year on a positive note? On November 30, Quincy Krosby, chief global strategist at LPL Financial, joined Market Domination on Yahoo Finance to discuss her market thesis. Krosby believes that the market will end the year in “positive territory,” assuming that no unexpected or headline events occur moving forward. She also added that portfolio managers will strive to report gains, and will most likely close books before the end of 2024.
Krosby revealed that the market is very “enthusiastic” about the new administration, despite serious concerns over tariffs. She shared that while 2024 has been a solid year for stocks, some moderation is expected in 2025. She also said that the number of earning revisions coming down for the year ahead is evidence of moderation, adding that if the Fed decides to withdraw its easing cycle plan or alter it, the market is going to be “pretty disappointed.”
She stated that in 2025, the market will have greater funding needs, reaching nearly $7.5-8 trillion, and greater uncertainty along with geopolitical risks. However, despite this, the market has been marching higher and navigating through these risks and is expected to continue doing so. Speaking about “waning business pricing power,” Krosby stated that while consumers have been spending, they are looking for “more bargains.” Companies have also been trying to beat tariffs and figure out which areas of the market are going to get more expensive.
Speaking of market uncertainty, Krosby believes how the market unfolds will be crucial and critical. Overall, she shared her bullish stance on industrials, especially names in the defense, building, and defense manufacturing industries. She also added that stocks in the communication sector, especially those with higher dividend offerings, particularly if the Fed easing cycle goes as planned, are going to perform better in the coming year.
While the future of the Fed cycle and inflationary pressures may be uncertain, some stocks have historically been safe to invest in. That said, let’s take a look at the 10 safe stocks to buy according to analysts.
Our Methodology
To come up with the 10 safe stocks to buy according to analysts we consulted multiple reports and also screened for reliable growers using the Finviz stock screener. We compiled an initial list of 30 stocks. We then referred to the 10-year revenue growth rate for each stock and a solid analyst upside, of at least 8%. The 10 safe stocks to buy according to analysts are in ascending order of the analyst upside as of December 9, 2024. We also included the hedge fund sentiment of each stock.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A team of insurance professionals in a boardroom overlooking a city skyline.
Berkshire Hathaway Inc. (NYSE:BRK-B)
Analyst Upside as of December 9, 2024: 13%
10-Year Revenue Growth Rate: 6.95%
Number of Hedge Fund Holders: 120
Berkshire Hathaway Inc. (NYSE:BRK-B) is a multinational company with businesses in multiple industries including financial services, insurance, energy, transportation, rail, and utility. The company has ownership rights and control over multiple major companies across the globe, contributing to its position on our list and its strong financial performance.
In the third quarter of 2024, the company logged nearly $93 billion in revenue. Of the total revenue, insurance premiums were $22 billion and its sales and services segment generated $39 billion. While the company saw a slight decline in revenues during the quarter, analysts remain bullish on the stock, and their median price target points to an upside of 13% from current levels.
Berkshire Hathaway Inc.’s (NYSE:BRK-B) competitive edge lies in its diversified business model and strong financial record, making it one of the safest stocks to buy according to analysts. According to Insider Monkey’s database, 120 hedge funds held stakes in Berkshire Hathaway Inc. (NYSE:BRK-B), as of Q3 2024.
Overall, BRK-B ranks 7th on our list of best safe stocks to buy according to analysts. While we acknowledge the potential of BRK-B to grow, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than BRK-B but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.