UNVR - 3 Stocks Warren Buffett Would Love
Warren Buffett isn't known for chasing speculative growth stocks or companies in uncertain markets, so if you are looking for those stocks, then look away. However, he is known for buying relatively safe, possibly boring, companies that have the ability to increase earnings from their assets. In this context, specialty chemicals distributor Univar Solutions (NYSE: UNVR) , paint and coatings company PPG Industries (NYSE: PPG) , and electrical equipment maker Hubbell (NYSE: HUBB) strike me as the sort of boring, cash flow generative, and undervalued businesses that Buffett might buy. Here's why.
Specialty chemicals distribution is a relatively niche and highly fragmented industry, with the top three distributors accounting for around 10% of the market. It's a relatively low-growth industry, but that won't worry Univar Solutions investors too much. The case for buying the stock isn't based on the inherent top-line growth prospects, but rather the company's ability to raise its margin in line with its peers .
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3 Stocks Warren Buffett Would Love