The Motley Fool

3 ASX stocks Warren Buffett would like for 2020

Amid all the fuss around the August reporting season, I’ve picked out 3 stocks with the right mix of strong fundamentals and significant upside potential that even Warren Buffett may consider for 2020.

1. Infigen Energy Ltd (ASX: IFN)

The Aussie renewables group just had a strong showing in its most recent full-year results and could be set to surge higher in 2020.

Infigen reported underlying earnings up 11% on the prior corresponding period (pcp) to $165.3 million, while net revenue also climbed 9% higher to $229.3 million.

Most critically, purchase power agreement (PPA) volumes rocketed 20% higher to 489 gigawatt-hours (GWh) while renewable energy generation also climbed 20% higher to 1,775GWh.

Buffett has never been afraid of investing in companies with a strong upside in an emerging industry that have sound fundamentals and that’s what Infigen looks like to me.

Looking ahead to 2020, if Infigen can continue to deliver strong numbers I think its current $0.55 valuation could represent a bargain buy.

2. BHP Group Ltd (ASX: BHP)

The BHP share price has been hit hard by the recent escalation in the US–China trade war in August, falling 14% lower in the last 30 days.

However, I think BHP’s current $34.72 per share valuation could be a temporary dip, which represents a buying opportunity for speculative, value-based investors.

If and when the USA and China reach a resolution of sorts, the cloud hanging over Chinese demand for products should be lifted and I wouldn’t be surprised to see a strong rebound from BHP and its fellow Resources sector peers.

3. Coca-Cola Amatil (ASX: CCL)

Buffett is known for his love of physical goods and manufacturers, and I think Coca-Cola Amatil could fit the bill.

While the Coca-Cola share price hasn’t been on fire in 2019, it did reach a new 52-week high last week after reporting its full-year earnings.

Coca-Cola reported total revenue up 5% to $2,427 million while statutory net profit after tax (NPAT) shot 6.3% higher to $168 million.

Buffett has famously been a big investor in parent company Coca-Cola and I think the Aussie group may be a better bargain buy.

The company recently finalised the sale of troubled fruit and vegetable cannery SPC for $40 million and could be in good shape to turn its recent performance around.

Given the stock trades at an earnings multiple of 19x and offers investors a 4.4% dividend yield, I think Coca-Cola could make an attractive buy to the right portfolio.

Not sold on the above? Take a look at these 5 buy-rated cheap ASX growth stocks instead.

NEW. Five Cheap and Good Stocks to Buy in 2019…

Our Motley Fool experts have just released a brand new FREE report, detailing 5 dirt cheap shares that you can buy today.

One stock is an Australian internet darling with a rock solid reputation and an exciting new business line that promises years (or even decades) of growth… while trading at an ultra-low price…

Another is a diversified conglomerate trading near a 52-week low all while offering a 2.8% fully frankded yield...

Plus 3 more cheap bets that could position you to profit over the next 12 months!

See for yourself now. Simply click the link below to scoop up your FREE copy and discover all 5 shares. But you will want to hurry – this free report is available for a brief time only.

CLICK HERE FOR YOUR FREE REPORT!

Motley Fool contributor Kenneth Hall has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Coca-Cola Amatil Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

NEW. Five Cheap and Good Stocks to Buy in 2019…

Our Motley Fool experts have just released a brand new FREE report, detailing 5 dirt cheap shares that you can buy today.

One stock is an Australian internet darling with a rock solid reputation and an exciting new business line that promises years (or even decades) of growth… while trading at an ultra-low price…

Another is a diversified conglomerate trading near a 52-week low all while offering a 2.8% fully franked yield…

Plus 3 more cheap bets that could position you to profit over the next 12 months!

See for yourself now. Simply click the link below to scoop up your FREE copy and discover all 5 shares. But you will want to hurry – this free report is available for a brief time only.

CLICK HERE FOR YOUR FREE REPORT!