8 Undervalued Stocks That Fit Warren Buffett’s Value Investing Playbook
2026-07-16 12:16
•David Wagner •Investing.com
•••• •• Axe Capital view
Value Hunting Beyond the Usual Suspects
Buffett’s style still works but expect fewer bargains in frothy markets.
Warren Buffett’s warning about scarce value in today’s market rings true, even here on the JSE. The excitement around tech and growth stocks—like Naspers or Prosus—has pushed many share prices to extremes, leaving fewer deep-value opportunities. However, the latest push in US natural gas names like EQT, trading cheaply with strong cash flow, offers a fascinating mirror. South African resource plays, especially those with clean balance sheets like AngloGold Ashanti, can attract similar interest if global commodities trends hold. Also, Expedia’s bet on profitable growth and share buybacks reminds us that quality at a discount is rare but worth hunting for. On the rand, a softer USD/ZAR could boost domestic consumer stocks like Shoprite and Woolworths, which often get caught in the currency swings. Watch for rising rates or global shocks that can quickly reverse risk appetites—it’s never straightforward. this is just my opinion and not financial advice
I’d selectively add to resource counters with solid cash flow and trim expensive growth stocks like Prosus. Keep an eye on USD/ZAR; a weaker rand could support consumer-facing shares.
- EQT
- AngloGold Ashanti
- Prosus
- Shoprite
- USD/ZAR
- global rate hikes reducing risk appetite
- volatility in commodity prices affecting resource shares
6/10
Warren Buffett warns that attractive valuations are increasingly difficult to find as speculation overshadows long-term investing in markets near record highs. However, opportunities remain for disciplined investors. Eight US stocks that have fallen 40-48% year-to-date are identified as undervalued by 24-63% based on InvestingPro Fair Value estimates, with analyst upside projections of 23-86%, including EQT and Expedia.
This article was originally published by Investing.com and has been adapted here for Axe Capital Trading News.
Publisher: Investing.com
Author: David Wagner
Categories: Equities, Earnings, Capital Returns, Commodities
Tickers: EQT, EXPE
Sentiment: Positive - EQT is highlighted as an attractive value opportunity trading at 9x earnings with strong fundamentals including nearly doubled adjusted EPS to $2.33 in Q1, record free cash flow, and leverage below 1x. The company benefits from a low-cost operating base in natural gas production. Expedia is presented as an undervalued opportunity with record Q1 adjusted EBITDA margins, adjusted EPS beating expectations, and a new $5 billion share buyback authorization. Growth in higher-margin B2B business supports the positive outlook.
Keywords: value investing, undervalued stocks, Warren Buffett, market speculation, valuation, natural gas, online travel, stock recovery
Insights:
- EQT: Positive: EQT is highlighted as an attractive value opportunity trading at 9x earnings with strong fundamentals including nearly doubled adjusted EPS to $2.33 in Q1, record free cash flow, and leverage below 1x. The company benefits from a low-cost operating base in natural gas production.
- EXPE: Positive: Expedia is presented as an undervalued opportunity with record Q1 adjusted EBITDA margins, adjusted EPS beating expectations, and a new $5 billion share buyback authorization. Growth in higher-margin B2B business supports the positive outlook.