Warren Buffett might be looking to buy these 12 stocks, Wells Fargo says

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Altria

Altria

Ticker: MO

Industry: Tobacco

5-Year Average ROE: 139.8%

5-Year Average ROIC: 37.6%

D/E versus Industry D/E: 76.8% vs. 160.8%

5-year average pretax PM versus 5-year average industry PM: 57.8% vs. 30.0%

Current P/E versus Industry P/E: 12.1 vs. 13.9

Current P/B versus Industry P/B: 5.9 vs. 6.6

Current P/CF versus Industry P/CF: 12.5 vs. 33.4

Market Cap: $90.6 billion

Source: Wells Fargo

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Cboe Global Markets

Cboe Global Markets

Ticker: CBOE

Industry: Financial exchanges

5-Year Average ROE: 61.3%

5-Year Average ROIC: 60.0%

D/E versus Industry D/E: 29.0% vs. 166.6%

5-year average pretax PM versus 5-year average industry PM: 42.5% vs. 34.4%

Current P/E versus Industry P/E: 19.0 vs. 23.2

Current P/B versus Industry P/B: 3.3 vs. 14.0

Current P/CF versus Industry P/CF: 20.5 vs. 20.8

Market Cap: $10.3 billion

Source: Wells Fargo

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CNX Midstream Partners

CNX Midstream Partners

Ticker: CNXM

Industry: Oil and gas

5-Year Average ROE: 22.0%

5-Year Average ROIC: 17.7%

D/E versus Industry D/E: 139.0% vs. 287.0%

5-year average pretax PM versus 5-year average industry PM: 52.2% vs. 24.1%

Current P/E versus Industry P/E: 9.7 vs. 18.8

Current P/B versus Industry P/B: 3.5 vs. 4.1

Current P/CF versus Industry P/CF: 6.4 vs. 7.3

Market Cap: $1.1 billion

Source: Wells Fargo

Cognizant Technology Solutions

Cognizant Technology Solutions

Ticker: CTSH

Industry: Technology

5-Year Average ROE: 18.4%

5-Year Average ROIC: 16.8%

D/E versus Industry D/E: 5.7% vs. 108.2%

5-year average pretax PM versus 5-year average industry PM: 18.1% vs. 8.6%

Current P/E versus Industry P/E: 14.9 vs. 20.9

Current P/B versus Industry P/B: 3.4 vs. 4.3

Current P/CF versus Industry P/CF: 13.9 vs. 13.6

Market Cap: $37.4 billion

Source: Wells Fargo

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Micron Technology

Micron Technology

Ticker: MU

Industry: Semiconductors

5-Year Average ROE: 28.4%

5-Year Average ROIC: 19.0%

D/E versus Industry D/E: 11.0% vs. 84.7%

5-year average pretax PM versus 5-year average industry PM: 21.8% vs. 10.4%

Current P/E versus Industry P/E: 4.4 vs. 22.0

Current P/B versus Industry P/B: 1.1 vs. 5.9

Current P/CF versus Industry P/CF: 2.1 vs. 18.2

Market Cap: $38.9 billion

Source: Wells Fargo

Tapestry

Tapestry

Ticker: TPR

Industry: Luxury retail

5-Year Average ROE: 20.0%

5-Year Average ROIC: 16.2%

D/E versus Industry D/E: 48.4% vs. 62.4%

5-year average pretax PM versus 5-year average industry PM: 15.8% vs. 11.0%

Current P/E versus Industry P/E: 12.9 vs. 22.4

Current P/B versus Industry P/B: 3.2 vs. 5.0

Current P/CF versus Industry P/CF: 9.6 vs. 13.6

Market Cap: $10.5 billion

Source: Wells Fargo

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Capri Holdings

Capri Holdings

Ticker: CPRI

Industry: Apparel

5-Year Average ROE: 38.6%

5-Year Average ROIC: 37.0%

D/E versus Industry D/E: 23.1% vs. 62.4%

5-year average pretax PM versus 5-year average industry PM: 23.0% vs. 11.0%

Current P/E versus Industry P/E: 8.0 vs. 22.4

Current P/B versus Industry P/B: 2.8 vs. 5.0

Current P/CF versus Industry P/CF: 6.1 vs. 13.6

Market Cap: $6.1 billion

Source: Wells Fargo

Cummins

Cummins

Ticker: CMI

Industry: Diversified industrials

5-Year Average ROE: 19.0%

5-Year Average ROIC: 15.5%

D/E versus Industry D/E: 21.7% vs. 89.2%

5-year average pretax PM versus 5-year average industry PM: 11.6% vs. 9.1%

Current P/E versus Industry P/E: 10.3 vs. 13.7

Current P/B versus Industry P/B: 3.1 vs. 2.6

Current P/CF versus Industry P/CF: 10.5 vs. 19.3

Market Cap: $22.5 billion

Source: Wells Fargo

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EQM Midstream Partners

EQM Midstream Partners

Ticker: EQM

Industry: Oil and gas

5-Year Average ROE: 29.4%

5-Year Average ROIC: 18.5%

D/E versus Industry D/E: 68.8% vs. 287.0%

5-year average pretax PM versus 5-year average industry PM: 66.4% vs. 24.1%

Current P/E versus Industry P/E: 8.9 vs. 18.8

Current P/B versus Industry P/B: 1.1 vs. 4.1

Current P/CF versus Industry P/CF: 3.9 vs. 7.3

Market Cap: $5.3 billion

Source: Wells Fargo

Regeneron Pharmaceuticals

Regeneron Pharmaceuticals

Ticker: REGN

Sector: Pharmaceuticals

5-Year Average ROE: 21.5%

5-Year Average ROIC: 18.3%

D/E versus Industry D/E: 9.0% vs. 52.0%

5-year average pretax PM versus 5-year average industry PM: 30.8% vs. 17.8%

Current P/E versus Industry P/E: 18.6 vs. 30.1

Current P/B versus Industry P/B: 5.5 vs. 5.7

Current P/CF versus Industry P/CF: 21.2 vs. 30.7

Market Cap: $42.6 billion

Source: Wells Fargo

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Urban Outfitters

Urban Outfitters

Ticker: URBN

Industry: Apparel

5-Year Average ROE: 15.6%

5-Year Average ROIC: 15.2%

D/E versus Industry D/E: 0.0% vs. 12.8%

5-year average pretax PM versus 5-year average industry PM: 10.3% vs. 6.8%

Current P/E versus Industry P/E: 11.9 vs. 14.5

Current P/B versus Industry P/B: 2.4 vs. 5.8

Current P/CF versus Industry P/CF: 8.7 vs. 8.3

Market Cap: $3.5 billion

Source: Wells Fargo

Bed Bath & Beyond

Bed Bath & Beyond

Ticker: BBBY

Industry: Specialty retail

5-Year Average ROE: 25.4%

5-Year Average ROIC: 18.6%

D/E versus Industry D/E: 51.4% vs. 477.5%

5-year average pretax PM versus 5-year average industry PM: 10.4% vs. 6.6%

Current P/E versus Industry P/E: 7.7 vs. 14.1

Current P/B versus Industry P/B: 0.7 vs. 16.1

Current P/CF versus Industry P/CF: 2.0 vs. 8.2

Market Cap: $2.1 billion

Source: Wells Fargo

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