You're More Like Warren Buffett Than You Think
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Experian's (LON:EXPN) earnings growth rate lags the 15% CAGR delivered to shareholders
One simple way to benefit from the stock market is to buy an index fund. But if you choose individual stocks with prowess, you can make superior returns. For example, Experian plc (LON:EXPN) shareholders have seen the share price rise 43% over three years, well in excess of the market return (5.3%, not including dividends). However, more recent returns haven't been as impressive as that, with the stock returning just 2.9% in the last year, including dividends. Although Experian has shed UK£1.2b from its market cap this week, let's take a look at its longer term fundamental trends and see if they've driven returns. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price. During three years of share price growth, Experian achieved compound earnings per share growth of 0.5% per year. In comparison, the 13% per year gain in the share price outpaces the EPS growth. So it's fair to assume the market has a higher opinion of the business than it did three years ago. That's not necessarily surprising considering the three-year track record of earnings growth. The image below shows how EPS has tracked over time (if you click on the image you can see greater detail). It might be well worthwhile taking a look at our free report on Experian's earnings, revenue and cash flow. When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and share price return. Whereas the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising or spin-off. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. We note that for Experian the TSR over the last 3 years was 50%, which is better than the share price return mentioned above. This is largely a result of its dividend payments! Experian shareholders are up 2.9% for the year (even including dividends). But that was short of the market average. It's probably a good sign that the company has an even better long term track record, having provided shareholders with an annual TSR of 6% over five years. It's quite possible the business continues to execute with prowess, even as the share price gains are slowing. It's always interesting to track share price performance over the longer term. But to understand Experian better, we need to consider many other factors. Take risks, for example - Experian has 1 warning sign we think you should be aware of. If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can grow earnings. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on British exchanges. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
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The Zacks Analyst Blog Highlights Berkshire Hathaway, AbbVie, Intuitive Surgical, Hamilton Beach Brands and AXIL Brands
Chicago, IL – May 30, 2025 – announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Berkshire Hathaway Inc. (BRK.B), AbbVie Inc. ABBV, Intuitive Surgical, Inc. ISRG, Hamilton Beach Brands Holding Co. HBB and AXIL Brands, Inc. AXIL. The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Berkshire Hathaway Inc., AbbVie Inc. and Intuitive Surgical, Inc., as well as two micro-cap stocks Hamilton Beach Brands Holding Co. and AXIL Brands, Inc. The Zacks microcap research is unique as our research content on these small and under-the-radar companies is the only research of its type in the country. These research reports have been hand-picked from the roughly 70 reports published by our analyst team today. You can see all of today's research reports here >>> Ahead of Wall Street The daily 'Ahead of Wall Street' article is a must-read for all investors who would like to be ready for that day's trading action. The article comes out before the market opens and attempts to make sense of that morning's economic releases and how they will affect that day's market action. You can read this article for free on our home page and can actually sign up there to get an email notification as this article comes out each morning. You can read today's AWS here >>> Pre-Markets Stay Green After Tariff Ruling, Jobless Claims, Q1 GDP Today's Featured Research Reports Shares of Berkshire Hathaway have gained +10.8% over the year-to-date period against the Zacks Insurance - Property and Casualty industry's gain of +16.1%. The company is one of the largest property and casualty insurance companies, with numerous diverse business activities. A strong cash position supports earnings-accretive bolt-on buyouts and is indicative of its financial flexibility. Continued insurance business growth fuels an increase in float, drives earnings and generates maximum return on equity. The non-insurance businesses have also been doing well in the last few years. The insurer has also started increasing its investment in Japan. A sturdy capital level provides further impetus. However, exposure to cat loss induces earnings volatility and also affects underwriting results. Huge capital expenditure remains a headwind. Also, it remains to be seen how the behemoth fares when Greg Abel succeeds Warren Buffett as CEO of Berkshire. (You can read the full research report on Berkshire Hathaway here >>>) AbbVie's shares have outperformed the Zacks Large Cap Pharmaceuticals industry over the year-to-date period (+6.1% vs. -4.2%). The company beats first-quarter estimates for both earnings and sales. AbbVie has successfully navigated Humira's loss of exclusivity (LOE) by launching two other successful new immunology medicines, Skyrizi and Rinvoq, which are performing extremely well, bolstered by approvals in new indications and should support top-line growth in the next few years. AbbVie has several early/mid-stage candidates that have the potential to drive long-term growth. It expects to return to robust revenue growth in 2025, which is just the second year following the U.S. Humira LOE. However, the company faces several near-term headwinds like Humira LOE impact, increasing competitive pressure on Imbruvica and slowing sales of its aesthetics franchise. (You can read the full research report on AbbVie here >>>) Shares of Intuitive Surgical have outperformed the Zacks Medical - Instruments industry over the year-to-date period (+6.9% vs. -9.2%). The company ended the first quarter on a strong note, beating estimates on both counts. Revenues are likely to be driven by continued improvement in the company's da Vinci procedure volume, coupled with strong Ion procedure growth. ISRG topline is also likely aided by rising pricing of procedures to fight inflationary pressure. Launch of da Vinci SP in Europe and da Vinci 5 in U.S. market are bringing additional system placements. Opening new manufacturing facilities in Germany and Bulgaria should boost supply. However, the continued slowdown in bariatric procedures is likely to continue in 2025 amid the rise of GLP-1 medications, hurting top-line growth. ISRG also expects a slow, gradual decline in Instruments & Accessories revenues per procedure over the next few years due to growth in benign procedures. Operating expenses are likely to be on the higher side in 2025. (You can read the full research report on Intuitive Surgical here >>>) Hamilton Beach Brands' shares have outperformed the Zacks Household Appliances industry over the year-to-date period (+13.6% vs. -27.7%). This microcap company with market capitalization of $253.29 million posted strong first-quarter 2025 results, with gross margin up 120 bps to 24.6% despite tariff headwinds, driven by favorable mix and pricing. Operating profit rebounded to $2.3 million amid tight cost control. Tariff mitigation, sourcing shifts, and foreign trade zone certification support margin resilience. The high-margin HealthBeacon unit is scaling rapidly, with 50%+ patient growth expected in 2025, aided by a new OptumHealth launch. Premium products like CHI and the upcoming Lotus line support share gains in the $4 billion U.S. appliance market. E-commerce now accounts for 40% of U.S. sales, driven by a strong digital strategy. Geographic and channel diversification, including growth in Mexico and a new Sunkist partnership, enhances stability. Solid liquidity and disciplined capital allocation reinforce long-term growth prospects. (You can read the full research report on Hamilton Beach Brands here >>>) Shares of AXIL Brands have outperformed the Zacks Consumer Products - Staples industry over the year-to-date period (+60.4% vs. +3.2%). This microcap company with market capitalization of $41.03 million offers a compelling growth narrative driven by strong direct-to-consumer momentum, supported by enhanced e-commerce, data-driven marketing, and favorable Cyber Monday timing. Gross margins remained robust at 71.7% in the third quarter of fiscal 2025 due to operational efficiency and product mix, with adjusted EBITDA margin expanding to 12.9%. Improved liquidity ($4.77 million in cash) and positive operating cash flow ($1.7 million for the first nine months of fiscal 2025) enhance financial flexibility. Strategic United States supply chain shifts bolster resilience, while global direct-to-consumer-led expansion reduces domestic dependency. However, risks persist: weak inventory turnover, vendor and receivables concentration, elevated selling, general, and administrative expenses, and uncertain execution of domestic manufacturing could pressure margins and limit scalability if growth lags. (You can read the full research report on AXIL Brands here >>>) Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year. Today you can access their live picks without cost or obligation. See Stocks Free >> Zacks Investment Research 800-767-3771 ext. 9339 support@ Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit for information about the performance numbers displayed in this press release. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Berkshire Hathaway Inc. (BRK.B) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Hamilton Beach Brands Holding Company (HBB) : Free Stock Analysis Report AXIL Brands, Inc. (AXIL): Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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2 hours ago
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Warren Buffett Doubled His Position in These 2 Stocks Last Quarter. Should You Invest in Them?
Buffett's company, Berkshire Hathaway, significantly increased its position in both Constellation Brands and Pool Corp last quarter. These consumer stocks are profitable, established brands, and they also pay dividends. They are still, however, relatively small positions in Berkshire's overall portfolio. 10 stocks we like better than Constellation Brands › Warren Buffett's company Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) recently filed its latest 13F report, showing which stocks it has a position in. And by analyzing the filing, investors can see which stocks the company has been buying and selling. Berkshire hasn't been doing too much buying lately but there are a couple of stocks which it has dramatically increased its position in: Constellation Brands (NYSE: STZ) and Pool Corp (NASDAQ: POOL). Berkshire's share count in both of these stocks has more than doubled in just the past quarter. Are these stocks you should consider for your portfolio as well? Berkshire increased its position in beer maker Constellation Brands by 114% this past quarter, and it now owns more than 12 million shares. However, that's still modest in relation to Berkshire's overall portfolio as Constellation accounts for less than 1% of its total holdings. Why would Berkshire be bullish on Constellation Brands right now? What Buffett may like is that it has some strong, identifiable consumer brands in Corona and Modelo, which gives the company a competitive advantage over its peers. The company has also been steadily growing its revenue over the years and its operating income has also been strong. In the trailing 12 months, Constellation's operating income totaled $3.4 billion on revenue of $10.2 billion, for an impressive margin of 33%. What may have enticed Berkshire to add to the position was that in mid-February, the stock hit a new 52-week low, and bargain investor that Buffett is, decided to load up on the stock at the time. Constellation Brands may look appealing but there are risks to consider as well. The company makes its beers in Mexico and tariffs pose a risk for the foreseeable future. And there are also rising health concerns around alcohol as it has been linked to an increased risk of developing several types of cancers, which could impact demand in the long run as consumers become more health conscious. For those reasons, I wouldn't go out and buy the stock. But if you want a cheap dividend stock, Constellation could make for a compelling option as it pays 2.2%, which is better than the S&P 500 average of 1.3%. The stock that jumped the most (in terms of percentage points) in Berkshire's portfolio this past quarter was Pool Corp. Berkshire's position in that stock increased by 145%, but at around 1.5 million shares, it's a much smaller position overall for the company than Constellation. Pool Corp makes up just 0.2% of Berkshire's entire portfolio. As its name suggests, Pool Corp is in the business of pools; it refers to itself as "the world's leading wholesale distributor of swimming pool equipment, parts and supplies, and related outdoor living products." The company has a strong global presence with sales centers in North America, Europe, and Australia. Pool Corp's numbers are good but not as impressive as Constellation's. For one thing, the company's sales declined for the past two years, from $6.2 billion in 2022 to $5.5 billion the following year, and falling to $5.3 billion this past year. It is profitable, but its operating income of $617 million in 2024 was a more modest 12% of its top line. That's a decent margin, but it doesn't look terribly exciting. As with Constellation Brands, Pool Corp stock has also been falling in recent months, and that may have incentivized Buffett to add the stock to Berkshire's holdings. Overall, it's a simple business to understand, it makes decent profits, and it pays a dividend of 1.7%. It's a no-nonsense stock that fits well with other consumer stocks that Berkshire has in its portfolio. But here again, I'd pass on the stock simply because its numbers aren't all that compelling, and a time when consumers are scaling back on discretionary purchases, there may not be growing demand for swimming pools anytime soon. Before you buy stock in Constellation Brands, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Constellation Brands wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $651,761!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $826,263!* Now, it's worth noting Stock Advisor's total average return is 978% — a market-crushing outperformance compared to 170% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 David Jagielski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Berkshire Hathaway. The Motley Fool recommends Constellation Brands. The Motley Fool has a disclosure policy. Warren Buffett Doubled His Position in These 2 Stocks Last Quarter. Should You Invest in Them? was originally published by The Motley Fool
