Warren Buffett's 3 Best Stocks To Buy When The Market Recovers

When markets are down, Warren Buffett stocks seem to get even hotter. In spite of all the press, there was no huge crisis after all.

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It is now a good time to buy some Warren Buffett stocks if you are bullish and conservative.

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As well, Berkshire Hathaway (NYSE: BRK.A, NYSE: BRK.B) acquired numerous shares of cyclical firms throughout 2022, making it one of the most notable cyclical companies of the year.

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As part of its cyclical investment strategy, Berkshire purchased oil producer Occidental Petroleum (NYSE: OXY).

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With the market regaining its footing, investors should emulate Warren Buffett by buying these three Warren Buffett stocks.

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Bank of America

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It's the first time since 2020 that Bank of America (NYSE: BAC) stock has fallen below $30, according to Trade Algo.

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A "too-large-to-fail" bank will probably be able to maintain a healthy net interest margin because it doesn't have to raise interest rates on deposits a great deal.

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In addition, analysts are expecting BAC to deliver $3.39 per share this year, up from $3.19 in 2022.

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As BAC stock attracted investors last month because of its weakness, BMO Capital analyst Brian Belski called it a "value play in the market."

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BAC's stock is trading at an 8.15 forward price-earnings ratio.

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American Express

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At the end of last month, Berkshire Hathaway owned $22.4 billion worth of shares of American Express (NYSE: AXP), the iconic credit card network.

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A year-over-year increase in Americans' spending is predicted even excluding inflation and the bank mini-crisis.

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Due to its income tied to middle-class and wealthy cardholder purchases, American Express enjoys a remarkably advantageous position.

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In 2022, the company generated $9.85 in earnings per share, but analysts expect that to jump to $11.13 this year.

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There is a low forward price-earnings ratio of 14.5 for AXP stock.

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Louisiana Pacific

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LPX manufactures materials used in new home construction, as I explained in my introduction.

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LPX closed on April 5, 2022, at $52.98 per share. Berkshire bought 5.8 million shares in the third quarter of 2022.

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According to my previous column, “Macroeconomic conditions should result in a strong housing rebound in the medium term, given that interest rates are going to drop and housing supplies aren't large enough to meet demand.” Therefore, homebuilders will be incentivized to increase production, which will boost LPX’s earnings.

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The shares are changing hands at a very low forward price-earnings ratio of only 53, according to analysts. LPX's earnings per share are expected to climb to $4.48 from $2.73 this year.

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