In this article, we will discuss the 10 Best Stocks to Buy According to Billionaire David Einhorn.
David Einhorn is a highly regarded hedge fund manager, who co-founded Greenlight Capital in 1996. Einhorn shot to fame after he correctly forecasted the collapse of Lehman Brothers during the financial crisis. He graduated from Cornell University and garnered his skills in the hedge fund industry under the mentorship of Gary Siegler and Peter Collery at the SC Fundamental Value Fund. Due to his prowess in long/short equity strategies, David Einhorn is being tagged as one of the most successful hedge fund managers.
Greenlight Capital’s Investment Philosophy
Greenlight Capital specializes in value-oriented strategies. The investment management firm primarily focuses on long and short positions in the listed equity securities and selectively engages in distressed debt investments during favorable economic cycles. Einhorn is a highly-regarded hedge fund manager who uses a long-short investment strategy. Because of this strategy, he can capitalize on both rising and falling markets, providing him flexibility during uncertainties.
The Greenlight Capital funds (the Partnerships) managed to return 7.2% in 2024, net of fees and expenses, as compared to 25.0% for the broader S&P 500 index. However, since the inception of Greenlight Capital, the Partnerships returned 3,117% cumulatively or 12.9% annualized, both net of fees and expenses. Over the same period, the S&P 500 index delivered 1,421% or 10.0% annualized. Notably, Greenlight’s investors earned $5.7 billion, net of fees and expenses, since inception.
READ ALSO: 7 Best Stocks to Buy For Long-Term and 8 Cheap Jim Cramer Stocks to Invest In.
Greenlight Capital’s Views on Current Market Dynamics
CNBC, while quoting the comments of Greenlight Capital’s David Einhorn, mentioned that speculative behavior in the current bull market has reached beyond common sense. As per the firm’s Q4 2024 investor letter, the investors continue to experience a ‘Fartcoin’ stage of the market cycle. To give a brief context, Fartcoin is a cryptocurrency that came into existence late last year. Apart from trading and speculation, no other obvious purpose is being served and no need that is not being served elsewhere is being fulfilled. Einhorn went on to add that the investors might be leaving the Fartcoin stage of the market and entering the Trump (and Melania) memecoin stage. While the certainty about the possible outcome remains unpredictable, it is going to be wild, says David Einhorn.
Amidst these trends, let us now have a look at the 10 Best Stocks to Buy According to Billionaire David Einhorn.
Our Methodology
To list the 10 Best Stocks to Buy According to Billionaire David Einhorn, we selected the top 10 stocks in Greenlight Capital’s portfolio as per its Q4 2024 13F filing. We settled on the hedge fund’s 10 biggest holdings. Finally, we ranked the stocks in ascending order based on the value of Greenlight Capital’s equity stakes. Additionally, we have mentioned the hedge fund sentiment around each stock, as of Q4 2024.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10 Best Stocks to Buy According to Billionaire David Einhorn
10. Roivant Sciences Ltd. (NASDAQ:ROIV)
Greenlight Capital’s Stake Value: $62.3 million
Number of Hedge Fund Holders: 44
Roivant Sciences Ltd. (NASDAQ:ROIV) is a commercial-stage biopharmaceutical company, which is engaged in the development and commercialization of medicines for inflammation and immunology areas. Analyst David Risinger from Leerink Partners reiterated a “Buy” rating on the company’s stock, providing a price objective of $17.00. The analyst’s rating is backed by factors demonstrating the company’s promising future. Roivant Sciences Ltd. (NASDAQ:ROIV) is anticipated to make strong progress in 2025 with the help of critical pipeline developments that can favorably impact the stock.
Elsewhere, Douglas Tsao, an analyst from H.C. Wainwright, reiterated a “Buy” rating on the company’s stock. The associated price target remained same at $18.00. The rating stemmed from factors related to the company’s strategic advancements and promising opportunities. Roivant Sciences Ltd. (NASDAQ:ROIV) has broadened its clinical pipeline with the newly announced trial of brepocitinib in cutaneous sarcoidosis (CS). As with dermatomyositis and non-infectious uveitis, brepocitinib can be the first-in-class agent for CS and expands the treatment options for patients suffering from an indication with high unmet need.
Tourlite Capital Management, an investment management firm, released a Q4 2024 investor letter. Here is what the fund said:
“We continue to believe Roivant Sciences Ltd. (NASDAQ:ROIV) offers an attractive risk reward and multiple ways to win. Excluding Roivant’s cash balance and Immunovant (IMVT) stake, the remainder of Roivant (ROIV stub) is valued at less than $2 per share. We believe Roivant’s stake in Arbutus and its exposure to the LNP litigation could alone be worth up to $4. In addition to ROIV, we remain shareholders in Arbutus.”
9. HP Inc. (NYSE:HPQ)
Greenlight Capital’s Stake Value: $68.8 million
Number of Hedge Fund Holders: 48
HP Inc. (NYSE:HPQ) offers personal computing, printing, 3D printing, hybrid work, gaming, and other related technologies. In the broader PC market, critical trends like remote work, gaming, and the requirement for more powerful computing solutions for AI and data analysis can fuel demand for high-performance devices. The company has announced a definitive agreement to acquire key AI capabilities from Humane, which includes their AI-powered platform Cosmos, highly skilled technical talent, and intellectual property with over 300 patents and patent applications. Notably, the acquisition strengthens HP Inc. (NYSE:HPQ)’s transformation into a more experience-led company.
This investment is expected to rapidly accelerate HP Inc. (NYSE:HPQ)’s ability to develop a new generation of devices that orchestrate AI requests both locally and in the cloud. Humane’s AI platform Cosmos can help the company create an intelligent ecosystem throughout all the HP devices from AI PCs to smart printers and connected conference rooms. The company remains focused on the future of work, demonstrating opportunities in AI and premium product categories. Its Personal Systems segment is expected to outpace market growth, fueled by innovation in AI PCs and premium categories. HP Inc. (NYSE:HPQ) has made significant progress in establishing a globally diverse supply chain, and by FY 2025 end, it anticipates that over 90% of HP products sold in North America will be built outside of China.
8. Viatris Inc. (NASDAQ:VTRS)
Greenlight Capital’s Stake Value: $72.02 million
Number of Hedge Fund Holders: 48
Viatris Inc. (NASDAQ:VTRS) operates as a healthcare company. The company’s focus on business development and pipeline expansion can be a strong catalyst for future growth. The successful business development initiatives can result in a more diversified and robust product pipeline, reducing its reliance on any single product or market. This can help mitigate risks related to patent expirations or market-specific challenges, offering a more stable foundation for long-term growth. As Viatris Inc. (NASDAQ:VTRS) progresses into 2025, it remains focused on fueling healthy commercial execution and advancing its pipeline—such as numerous important late-stage development milestones for selatogrel, cenerimod and sotagliflozin and six Phase 3 readouts.
Viatris Inc. (NASDAQ:VTRS) is emphasizing the execution of the 2025 operating plan and identifying the opportunities to grow business and streamline global infrastructure post-divestitures. Apart from the new product launches, the company targets accretive regional business development opportunities that leverage the global infrastructure. With respect to commercial priorities, the company remains focused on driving successful complex injectables launches in the US market and developing global commercialization strategies for innovative pipeline assets. Viatris Inc. (NASDAQ:VTRS) plans to execute 150+ new generic launches globally and strengthen innovative commercialization capabilities throughout key markets.
7. Peloton Interactive, Inc. (NASDAQ:PTON)
Greenlight Capital’s Stake Value: $91.5 million
Number of Hedge Fund Holders: 49
Peloton Interactive, Inc. (NASDAQ:PTON) operates an integrated fitness platform in North America and internationally. Canaccord Genuity analysts upgraded the company’s stock from “Hold” to “Buy,” establishing a price objective of $10.00. The change in rating was backed by the analysts recognizing Peloton Interactive, Inc. (NASDAQ:PTON)’s position as a leading force in the connected fitness industry, thanks to a healthy membership base as well as a higher-margin recurring revenue stream. The firm’s analysts expect a positive revenue trajectory for the company moving forward, fueled by the revenue initiatives. This growth can be complemented through the expansion of subscription growth, with Peloton Interactive, Inc. (NASDAQ:PTON) planning to introduce adjacent products.
In Q2 2025, the company’s subscription revenue came in at $420.6 million. This revenue was higher than expected due to increased paid connected fitness subscriptions. Canaccord Genuity’s outlook for the company is backed by its strong and influential global brand and dedicated customer base. The analysts opine that Peloton Interactive, Inc. (NASDAQ:PTON) has substantial opportunities for value appreciation. The company expects total revenue for FY 2025 of $2.43 billion – $2.48 billion. This demonstrates Peloton Interactive, Inc. (NASDAQ:PTON)’s expectations for favorable subscription revenue from higher paid connected fitness subscriptions and favorable connected fitness products revenue from higher tread portfolio sales, partly offset by reduced bike portfolio sales.
Greenlight Capital, an investment management firm, released its Q4 2024 investor letter. Here is what the fund said:
“We had some good successes, as well. Peloton Interactive, Inc. (NASDAQ:PTON) and Tenet Healthcare (THC), discussed below, were also large winners during 2024.
We presented our PTON thesis at the Robin Hood Investors Conference in October and previously sent you copies of the presentation. Yes, David rode for 20 minutes while presenting the thesis.5 PTON was a popular stock during the COVID era as demand for at-home fitness products and services skyrocketed. During this time, the company invested heavily for growth without any regard for profitability or expense management. After multiple missteps and subsequent management changes, the stock fell 98% from its peak price in early 2021. Throughout this time, PTON has maintained a loyal and engaged customer base through its subscription-based business model.
Recently, the company has committed itself to dramatically cutting costs. Should PTON be successful in right-sizing its cost structure, we expect significant EBITDA generation, and when applying a peer multiple to those profits, we believe the stock has significant upside. We established our position at an average price of $4.07 per share. PTON ended the year at $8.70.”
6. PENN Entertainment, Inc. (NASDAQ:PENN)
Greenlight Capital’s Stake Value: $113.9 million
Number of Hedge Fund Holders: 51
PENN Entertainment, Inc. (NASDAQ:PENN) offers integrated entertainment, sports content, and casino gaming experiences. Jason Tilchen from Canaccord Genuity maintained a “Buy” rating on the company’s stock with a price objective of $28.00. The analyst’s rating was backed by factors demonstrating the company’s potential for growth and profitability. PENN Entertainment, Inc. (NASDAQ:PENN) reported healthy Q4 2024 results, as its diverse geographic presence in land-based casinos and improved digital platform supported to counteract elevated competition in certain markets.
Furthermore, the research firm believes that the company’s growth projects, like the new Hollywood Casino Joliet and other developments, remain on track to improve its regional casino business. These factors, together with a stable retail outlook as well as strategic initiatives, offer an attractive risk/reward opportunity for investors. PENN Entertainment, Inc. (NASDAQ:PENN) highlighted that the success of its iCasino business was aided by the continued healthy momentum from the recent launches of its standalone Hollywood Casino app in Pennsylvania and Michigan. Elsewhere, analyst Bernie McTernan of Needham maintained a “Buy” rating on the company’s stock. The analyst believes that the partnership between PENN Entertainment, Inc. (NASDAQ:PENN) and Disney, mainly through ESPN Bet, still possesses the potential for creating shareholder value.
5. CNH Industrial N.V. (NYSE:CNH)
Greenlight Capital’s Stake Value: $115.9 million
Number of Hedge Fund Holders: 42
CNH Industrial N.V. (NYSE:CNH) is an equipment and services company, which is engaged in the design, production, marketing, sale, and financing of agricultural and construction equipment. Citi analyst Kyle Menges upped the company’s price objective to $15, showcasing effective inventory management and positive segment margin guidance amidst lower earnings expectations for 2025. As per the analyst, the trend of destocking is anticipated to continue into H1 2025, with CNH Industrial N.V. (NYSE:CNH) planning to align production with the retail demand in H2. Overall, the increased price objective demonstrates the higher multiple and the analyst’s confidence that 2025 will represent the trough earnings for the company, hinting at an expectation of recovery thereafter.
Elsewhere, DA Davidson upped the company’s price objective to $14, maintaining a “Neutral” stance as the firm acknowledged CNH Industrial N.V. (NYSE:CNH)’s progress in cost structure improvements. The firm believes that a promising situation has been developing for the company. The company’s past and ongoing efforts to reduce operating costs can partially mitigate the margin erosion. CNH Industrial N.V. (NYSE:CNH) continues to focus on reducing product costs with the help of lean manufacturing principles and strategic sourcing. It plans to carefully manage SG&A and R&D expenses.
Greenlight Capital, an investment management firm, released its Q4 2024 investor letter. Here is what the fund said:
“We established a new medium-sized position in CNH Industrial N.V. (NYSE:CNH) and a small position in Centene (CNC). CNH is a leading manufacturer of tractors, combines and other agricultural equipment. The farm equipment industry is going through a downcycle led by weak commodity prices and we estimate CNH will ultimately generate trough earnings close to $1 per share. We acquired our position at an average price of $10.53 per share, or less than 11x these expected bottom-of-cycle results. Investor sentiment is extremely weak on the view that the bottom is several years away.
We are optimistic that this current downturn will be shorter and shallower than the prior one experienced about a decade ago. First, the industry experienced strikes and supply chain issues over the last few years, tempering peak sales and inventory levels. Second, CNH and its peers took the corrective action of underproducing to end demand and destocking inventories earlier and more aggressively this time around. As a result, we expect CNH’s sales to return to growth sometime in the coming year simply by producing to end demand, even if farmer spending remains weak. In the meantime, CNH pays a 3% dividend and management has committed to returning the remaining free cash flow through buybacks. We estimate that management will be able to repurchase 5-6% of its stock annually. CNH ended 2024 at $11.33.”
4. Kyndryl Holdings, Inc. (NYSE:KD)
Greenlight Capital’s Stake Value: $130.1 million
Number of Hedge Fund Holders: 41
Kyndryl Holdings, Inc. (NYSE:KD) operates as a technology services company and IT infrastructure services provider. Scotiabank upped the price target on the company’s stock to $45 from $35, keeping an “Outperform” rating. As per the analyst, the company reported another strong quarter, surpassing the profitability expectations considering its strong execution. Notably, the firm continues to maintain its bullish stance on Kyndryl Holdings, Inc. (NYSE:KD)’s stock due to its execution capabilities, healthy market position, and differentiated business offering.
In Q3 2025, the company delivered another quarter of healthy signings growth and strong margin expansion, led by Kyndryl Consult, Kyndryl Bridge, and the alliances with hyperscalers. Given the sustained momentum in Kyndryl Holdings, Inc. (NYSE:KD)’s signings, together with increased operating margins, the company remains on track to deliver constant-currency revenue growth in Q4 2025. Over the next 3 years, Kyndryl Holdings, Inc. (NYSE:KD) expects to triple adjusted FCF and more than double adjusted pretax earnings. Furthermore, it initiated a $300 million share repurchase program, demonstrating its confidence in the future growth trajectory.
Rewey Asset Management, an investment management company, released its Q4 2024 investor letter. Here is what the fund said:
“Kyndryl Holdings, Inc. (NYSE:KD), which we highlighted in our 3Q24 letter, was our top performer in 4Q24, up 50.2%. KD held a well-received analyst day November 21st, where they reaffirmed 2025 financial guidance and set aggressive goals for 2028 margin improvement and Free Cash Flow growth. Investors also cheered the announcement of a $300 million share buyback. We see strong long-term upside in the shares and think KD could be an attractive acquisition target for a consulting or technology services company.”
3. Brighthouse Financial, Inc. (NASDAQ:BHF)
Greenlight Capital’s Stake Value: $136.19 million
Number of Hedge Fund Holders: 25
Brighthouse Financial, Inc. (NASDAQ:BHF) offers annuity and life insurance products in the US. The company continued to make progress on its capital-focused strategic initiatives, which include completing reinsurance transaction with a third party to reinsure a legacy block of universal life and variable universal life products as well as fully transitioning to hedging all new business for the Shield Level Annuities Product Suite on a standalone basis. In 2024, Brighthouse Financial, Inc. (NASDAQ:BHF) announced updates to its Shield product suite, designed to help the Shield suite remain competitive, adapt to changes happening in the broader industry, and reflect its ongoing focus on meeting clients’ evolving needs.
Furthermore, Brighthouse Financial, Inc. (NASDAQ:BHF)’s estimated combined RBC ratio as of the end of the year was ~400%, demonstrating a $100 million capital contribution from the holding company to Brighthouse Life Insurance Company. The company continues to have a healthy level of holding company liquid assets. Brighthouse Financial, Inc. (NASDAQ:BHF) possesses a high-quality, well-diversified investment portfolio, with total investments to the tune of ~$125 billion. Of this, ~$88 billion is in fixed maturity securities (97% investment grade). Since Q4 2021, the company has materially de-risked its portfolio as it has reduced below investment grade (BIG) credit by ~38%, while ‘B’-rated has been reduced by ~69%.
2. Core Natural Resources, Inc. (NYSE:CNR)
Greenlight Capital’s Stake Value: $148.78 million
Number of Hedge Fund Holders: 39
Core Natural Resources, Inc. (NYSE:CNR) produces, sells, and exports metallurgical and thermal coals in the US and internationally. Jefferies initiated coverage on the company’s stock with a “Hold” rating, setting the price objective at $93.00. The firm offered some insights into the company’s position in the broader US coal sector, demonstrating a unique asset base including exposure to both seaborne metallurgical and high-quality seaborne thermal coal markets, and the domestic US thermal coal market. As per the research firm, Core Natural Resources, Inc. (NYSE:CNR)’s diversified coal exposure and the inclusion of certain relatively low-cost mines can result in less cyclical cash flows as compared to other pure-play coal miners.
Core Natural Resources, Inc. (NYSE:CNR)’s two, world-class, complementary operating segments – metallurgical coal and high calorific value thermal coal – are expected to create a compelling opportunity for value creation and cash generation. Given the strategic asset base, low-cost mining operations, tremendous synergy potential, expansive logistics network, and industry-leading sustainability practices, Core Natural Resources, Inc. (NYSE:CNR) is exceptionally well-equipped to capitalize on the highly constructive, durable, long-term global market environment.
Black Bear Value Partners, an investment management firm, published its Q4 2024 investor letter. Here is what the fund said:
“Core Natural Resources, Inc. (NYSE:CNR): Both ARCH and CEIX were down ~18% during the month of December as fears of retaliatory tariffs (these have a large export component to their businesses), economic slowing and likely tax-loss selling drove the stocks lower. Like our discussion on BLDR, the long-term story remains intact, and we used this as an opportunity to further concentrate our investment. Due to their impending merger neither Company can buy back their stock. Once the merger is complete in Q1 there should be abundant cash to buy back stock. I am generally constructive on the merger as the Companies should be able to realize some modest synergies. My sense is more mergers will be coming to this sector given the depressed prices of the securities.
ARCH is one of the leading U.S. producers of high-quality metallurgical coal (“met coal”). This is the kind of coal used for steelmaking. ARCH also has a thermal coal business that contributes ~20% of their earnings. CONSOL is a leading producer of thermal coal.
Met coal demand is projected to climb for the next 25 years, driven by the economic development and urbanization in India and the rest of Southeast Asia. ~60% of the world’s population lives in Asia, where met coal demand is centered and where local sources are limited. Over the coming years demand will likely outstrip supply, leading to higher prices. There has been a severe lack of investment in met coal due to ESG concerns with investment peaking in 2014…” (Click here to read the full text)
1. Green Brick Partners, Inc. (NYSE:GRBK)
Greenlight Capital’s Stake Value: $534.81 million
Number of Hedge Fund Holders: 25
Green Brick Partners, Inc. (NYSE:GRBK) operates as a homebuilding and land development company. The company is optimistic about the housing market over the long term, which is supported by demographic tailwinds and persistent housing shortages. The company’s Q4 2024 net new orders rose 29.3% YoY to 878 homes. Its growth engine, Trophy Signature Homes, represented the lion’s share of total sales orders at 53.6% of homes sold. Green Brick Partners, Inc. (NYSE:GRBK) has attributed its achievements to its footprint in desirable infill and infill-adjacent submarkets where the company generated more than 80% of its full-year revenues.
The company kicked off 2025 with a healthy position for growth, with total lots owned and controlled up 31.9% YoY. At 2024 end, Green Brick Partners, Inc. (NYSE:GRBK) had 106 active selling communities, representing a 16.5% YoY growth. The company expects that the entry of millennials and Gen Z into their prime home-buying years will continue to drive significant demand. Green Brick Partners, Inc. (NYSE:GRBK) remains well-placed to further capitalize on the incremental demand, leveraging its superior land positions, mainly via its Trophy brand which specializes in more affordable housing options catering to the largest segment of the potential homebuyer market.
Greenlight Capital, an investment management firm, released its Q3 2024 investor letter. Here is what the fund said:
“In addition to gold, Green Brick Partners, Inc. (NYSE:GRBK) was the other significant winner during the quarter. GRBK reported quarterly earnings of $2.32 per share, which beat analyst estimates of $1.77 per share. The company continues to lead the industry in gross margins and has distinguished itself from its peers, who are increasingly focused on appearing to be “land light.” GRBK believes that being land light is very expensive at the gross margin level. Rather than pay high rates to third-party off-balance sheet land bankers, GRBK owns most of its land and lots while maintaining a very low-leveraged investment-grade balance sheet. As a result, it earns all of the development profits in addition to the homebuilding profits. Despite being “land heavy,” the result is a return on equity that is near the top of the industry. Even more exciting, GRBK has had a very successful period of land acquisition, and as a result the prospects for it to continue delivering industry-leading margins remain promising. This quarter, GRBK shares advanced from $57.24 to $83.52.”
While we acknowledge the potential of GRBK as an investment, our conviction lies in the belief that some deeply undervalued AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for a deeply undervalued AI stock that is more promising than GRBK but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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