Validea’s Top 5 Financial Stocks According to Warren Buffett – May 7, 2023

Financial Planners


Below are the highest rated financial stocks according to Validea’s patient investor model based on Warren Buffett’s published strategy. This strategy looks for companies that trade at reasonable valuations, have predictable long-term profitability and low debt.

Marsh & McLennan Companies, Inc. (MMC) A large growth stock in the insurance (other) industry. Our strategy rating, based on Warren Buffett, is 93% based on the company’s underlying fundamentals and stock valuation. A score of 80% or higher usually indicates that the strategy has some interest in the stock, and a score of over 90% usually indicates strong interest.

Company Profile: Marsh & McLennan Companies, Inc. is a professional services firm that provides clients with risk, strategy and people advice and solutions. We are the parent company of various risk advisors and professional consultants, including Marsh, an insurance broker. Risk and reinsurance specialist Guy Carpenter. Mercer, a provider of advice and digital his solutions that help organizations meet their health, wealth and career needs, and his Oliver Wyman Group, a management and economic consultancy firm. The Company operates through two segments: risk management activities, risk and insurance services, including insurance and reinsurance brokerage and services, and consulting, including health, wealth and career services and products, as well as professional management, economics and brand consulting services. conduct. The Company operates in risk and insurance services divisions through Marsh and Guy Carpenter. It operates in its consulting division through Mercer and the Oliver Wyman Group.

The following table summarizes whether a stock meets each test of this strategy. Not all criteria in the table below are equally weighted or independent, but this table provides a quick overview of a security’s strengths and weaknesses in the context of the strategy’s criteria. .

Revenue predictability: pass
Return on equity: pass
Return on Assets: pass
Free cash flow: pass
Use of Retained Earnings: pass
Share buyback: pass
Initial rate of return: pass
Expected return: pass

IN-DEPTH ANALYSIS OF MARSH & MCLENNAN COMPANIES INC

MMC glue analysis

MMC Fundamental Analysis

BANCO BBVA Argentina SA (ADR) (BBAR) Small cap value stock in the money center banking industry. Our strategy rating under Warren Buffett is 86% based on the company’s underlying fundamentals and stock valuation. A score of 80% or higher usually indicates that the strategy has some interest in the stock, and a score of over 90% usually indicates strong interest.

Company Profile: Banco Bbva Argentina SA (formerly known as BBVA French Bank) is a banking institution based in Argentina. Through its banking platform, banks offer a wide range of financial and non-financial services to both individuals and businesses. He manages his three lines of business: Retail Banking, Small Business and Corporate & Investment Banking (C&IB). Retail banking offers current and savings accounts, term deposits, credit cards, loans, mortgages, insurance and investment products. SMEs target local private companies that provide financial products, factoring, current accounts, term deposits, trading and payroll services, insurance and investment products, etc. C&IB provides financial services to corporations and multinational corporations, as well as global trading services, global market solutions and long-term financing. Banks operate mainly locally.

The following table summarizes whether a stock meets each test of this strategy. Not all criteria in the table below are equally weighted or independent, but this table provides a quick overview of a security’s strengths and weaknesses in the context of the strategy’s criteria. .

Revenue predictability: pass
Return on equity: pass
Return on Assets: pass
Free cash flow: Failure
Use of Retained Earnings: pass
Share buyback: pass
Initial rate of return: pass
Expected return: pass

Detailed analysis of BANCO BBVA ARGENTINA SA (ADR)

BBAR Guru Analysis

BBAR Fundamental Analysis

Houlihan Lowkey Ink (HLI) is a mid-cap growth stock in the investment services industry. Our strategy rating, based on Warren Buffett, is 85% based on the company’s underlying fundamentals and stock valuation. A score of 80% or above usually indicates that the strategy has some interest in the stock, and a score above 90% usually indicates strong interest.

Company Profile: Houlihan Lokey, Inc. is a global investment bank focused on M&A, capital markets, financial restructuring and valuations. The Company operates in three segments: corporate finance (CF), financial restructuring (FR), and financial and valuation advisory (FVA). The CF segment provides general financial advisory services, as well as advice on mergers and acquisitions and capital markets offerings. The FR segment provides debtors, creditors, and other interested parties with recapitalization/deleveraging transactions conducted through both bankruptcy proceedings and out-of-court exchanges, consent solicitations or other mechanisms, and distressed mergers. provide advice in relation to Acquisitions and capital markets activities. The FVA segment primarily provides valuations of various assets including companies, illiquid liabilities and equity, and intellectual property (among other assets and liabilities).

The following table summarizes whether a stock meets each test of this strategy. Not all criteria in the table below are equally weighted or independent, but this table provides a quick overview of a security’s strengths and weaknesses in the context of the strategy’s criteria. .

Revenue predictability: pass
Return on equity: Failure
Return on Assets: pass
Free cash flow: pass
Use of Retained Earnings: pass
Share buyback: neutral
Initial rate of return: pass
Expected return: pass

HOULIHAN LOKEY INC Detailed Analysis

HLI glue analysis

HLI Fundamental Analysis

Sei Investments (SEIC) is a mid-cap growth stock in the investment services industry. Our strategy rating, based on Warren Buffett, is 79% based on the company’s underlying fundamentals and stock valuation. A score of 80% or higher usually indicates that the strategy has some interest in the stock, and a score of over 90% usually indicates strong interest.

Company Profile: SEI Investments Company provides technology and investment solutions that connect the financial services industry. The Company’s segments include Private Bank, Investment Advisor, Institutional Investor, Investment Manager and New Business Investment. The Private Bank segment provides outsourced investment processing and investment management platforms to banks, trust institutions and others. Its Investment Advisory segment provides investment management and investment processing platforms to wealthy investors through its network of independent investment advisors, financial planners and others. Its institutional investors segment offers outsourced chief investment officer solutions, including investment management and administrative outsourcing platforms. Its Investment Manager segment provides an investment management outsourcing platform. The Investment in New Business segment focuses on providing investment management solutions to ultra-high net worth families.

The following table summarizes whether a stock meets each test of this strategy. Not all criteria in the table below are equally weighted or independent, but this table provides a quick overview of a security’s strengths and weaknesses in the context of the strategy’s criteria. .

Revenue predictability: pass
Return on equity: pass
Return on Assets: pass
Free cash flow: pass
Use of Retained Earnings: Failure
Share buyback: pass
Initial rate of return: pass
Expected return: pass

Detailed analysis of SEI INVESTMENTS CO.

SEIC guru analysis

SEIC Fundamental Analysis

Primerica, Inc. (PRI) It is a mid-cap growth stock in the insurance (life insurance) industry. Our strategy rating, based on Warren Buffett, is 79% based on the company’s underlying fundamentals and stock valuation. A score of 80% or higher usually indicates that the strategy has some interest in the stock, and a score of over 90% usually indicates strong interest.

Company Profile: Primerica, Inc. (Primerica) is a provider of financial products for middle-income families in the United States and Canada. The Company’s segments include term life insurance, investment and savings products, and senior health. The Company distributes its products through Primerica Life Insurance Company (Primerica Life), National Benefit Life Insurance Company and Primerica Life Insurance Company of Canada (Primerica Life Canada), subsidiaries of life insurance companies that issue term life insurance products. The Investment and Savings Products segment includes retail and managed mutual funds and annuities distributed through licensed broker-dealer subsidiaries and includes segregated funds. We also distribute mutual fund and annuity products from several third-party companies in the United States. The Company’s Senior Health segment consists of the sale of Medicare-related insurance products underwritten by third-party health insurers to eligible Medicare participants.

The following table summarizes whether a stock meets each test of this strategy. Not all criteria in the table below are equally weighted or independent, but this table provides a quick overview of a security’s strengths and weaknesses in the context of the strategy’s criteria. .

Revenue predictability: pass
Return on equity: pass
Return on Assets: pass
Free cash flow: pass
Use of Retained Earnings: pass
Share buyback: pass
Initial rate of return: pass
Expected return: Failure

Detailed analysis of PRIMERICA, INC.

PRI guru analysis

PRI Fundamental Analysis

Warren Buffett’s Portfolio

Warren Buffett Stock Top

About Warren Buffett: Warren Buffett is considered by many to be the greatest investor of all time. As chairman of Berkshire Hathaway, Buffett has consistently outperformed the S&P 500 for decades, making him one of the richest men in the world in the process. (Forbes puts his net worth at $37 billion.) Despite his fortune, Buffett is known to live a frugal life by billionaire standards. According to Forbes, his primary residence remains nearly the same as the gray plaster house in Nebraska he bought for $31,500 fifty years ago, with his folksy Midwestern manners and simple décor. I have a penchant for fun. Top of the list — well documented.

About Validia: Validea is an investment research service that follows the published strategies of investment legends. Validea offers both equity analysis and model portfolios based on long-term market outperformers such as Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig.Learn more about Validia

The views and opinions expressed herein are those of the authors and do not necessarily reflect those of Nasdaq, Inc.



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