10 Best New Stocks to Buy According to Billionaires

4. Solventum Corporation (NYSE:SOLV)

Market Capitalization: $11.683 billion

Number of Hedge Fund Holders: 41

Number of Billionaires: 12

Total Value of Billionaire Holdings: $784,436,827

Solventum Corporation (NYSE:SOLV) is an international healthcare company that develops and sells a range of products and solutions for the medical sector. The company operates through four main business segments including Medical Surgical, Dental Solutions, Health Information Systems, and Purification and Filtration. The company was spun off from 3M in 2024 and now trades as an independent company.

Solventum Corporation (NYSE:SOLV) is in the process of becoming completely independent from its spin-off. Since March, the company has exited roughly one-quarter of over 200 transition service agreements. It has also implemented new ERP systems, which are Enterprise Resource Planning systems, in six countries. Management noted that some large ERP implementations are remaining which it plans to complete in the current and next year.

Amidst this transition period, Solventum Corporation (NYSE:SOLV) still posted growth. During the fiscal fourth quarter of 2024, the company grew its sales by 2.3% to $2.1 billion. This growth was driven by a strong performance in the MedSurg segment which contributed $1.2 billion in sales. Looking ahead, management anticipates to keep growing its sales by 1% to 2%. It is one of the best new stocks to buy according to billionaires.

Diamond Hill Mid Cap Strategy stated the following regarding Solventum Corporation (NYSE:SOLV) in its Q4 2024 investor letter:

“As valuations have continued rising and the economic cycle has gotten relatively long in the tooth, we’ve thought carefully about where and how we are exposed to more cyclical stocks. As such, we initiated a number of new positions in Q4, including ICON, Informatica, Teledyne Technologies, LPL Financial Holdings, Teleflex Incorporated and Solventum Corporation (NYSE:SOLV).

Solventum, formerly 3M’s health care business, was spun out to shareholders in 2024. It provides a portfolio of solutions to address critical patient needs. The company has been challenged by years of underinvestment and market-share losses. However, the new management team is focused on driving revenue growth in line with peers’ — which we think is likelier as a standalone company. We also expect Solventum to optimize research and development to improve its sales mix and include new products.”