A Warren Buffett Stock Pick to Buy Now

It's not the best known of the stock picks held by Warren Buffett's Berkshire Hathaway, but Axalta Coating Systems (NYSE: AXTA) deserves to be looked at closely by investors. The company trades at a favorable valuation at a time when its sales momentum looks likely to change significantly. It's a combination that makes the stock a buy.

Axalta Coating Systems operates in two segments, with performance coatings (automotive refinish and industrial coatings) being the largest and highest margin. Performance coatings generated $449 million in adjusted earnings before interest and taxation (EBIT) on $2.9 billion worth of sales with a 15.4% margin in 2019.

This is compared to just $137 million in EBIT from transportation coatings (automotive original equipment manufacturer coatings and commercial vehicle coatings) on $1.56 billion worth of sales on an 8.8% margin.

Source Fool.com