Warren Buffett’s Berkshire Hathaway has a varied collection of 44 stocks valued at $297 billion. Analysts on Wall Street are optimistic about three of these stocks, anticipating noteworthy returns for investors in 2025. One promising stock from Buffett’s portfolio is Sirius XM Holdings, a satellite radio company projected to have considerable upside.
According to Matthew Harrigan from Benchmark, Sirius XM stock is expected to rise to $32 per share, which would result in a 44% increase. Even with challenges posed by online competitors and stagnation in vehicle sales, Sirius XM enjoys a dominant position in satellite radio, bolstered by its subscription-based revenue approach. Another Buffett stock that shows significant upside potential is Occidental Petroleum, a major player in the oil and gas sector.
John Freeman, an analyst at Raymond James, forecasts Occidental stock could climb to $78 per share, marking a potential 50% increase by 2025.
Buffett’s promising stocks
Occidental’s income is closely linked to its drilling activities, rendering it vulnerable to fluctuations in crude oil prices.
Factors such as geopolitical tensions and possible policy shifts during Donald Trump’s administration could push oil prices up, benefiting the company significantly. Apple, which is Berkshire Hathaway’s largest holding, is the third stock that a Wall Street analyst believes has the potential to rise sharply in 2025. Wedbush analyst Dan Ives has increased his price target for Apple to $325 per share, which suggests a potential 41% upside.
Ives’s optimism stems from Apple’s implementation of artificial intelligence (AI) within its products, which is anticipated to enhance consumer attraction and strengthen brand loyalty. Furthermore, Apple’s evolution into a service-oriented company along with its aggressive stock repurchase strategy could also lead to improved earnings per share. Each of these companies possesses unique advantages, making them appealing options for investors in the year ahead.
Though Buffett’s investment selection strategy may not be flawless, his emphasis on stocks with considerable growth potential may yield positive results in a year where investors are prioritizing stability.
