Billionaire Israel Englander’s Top 10 Stock Picks for 2024

7. KKR & Co. Inc. (NYSE:KKR)

Billionaire Israel Englander’s Stake Value: $921,662,818

Billionaire Israel Englander decreased his stake in KKR & Co. Inc. (NYSE:KKR) by 3% in the first quarter of 2024, closing the quarter with a $921 million stake in the company. KKR & Co. Inc. (NYSE:KKR) shares have gained about 81% over the past one year as investors flock to private equity and alternative investments as stock markets become volatile by the day.  At its investor day event in April, KKR & Co. Inc. (NYSE:KKR) management said the company expects its adjusted EPS to double from current level by 2026 in the range of $7.00 to $8.00 per share. Over a 10-year horizon, Adj. EPS will reach $15, almost 5 times the current value. KKR & Co. Inc. (NYSE:KKR) also expects to rake in $300 million in dividend income by 2026.

KKR & Co. Inc. (NYSE:KKR) is trading at a forward PEG ratio of 0.82, lower than the sector median of 1.14. The stock is trading at around 16.28X its  6.11 EPS estimate for 2025 set by Wall Street. With expected revenue growth in 2025 at 32.30% and earnings growth of 29.70%, KKR & Co. Inc. (NYSE:KKR) appears to be an undervalued play. Average analyst price estimate for KKR & Co. Inc. (NYSE:KKR) is $118, which presents an 18% upside potential from the current levels.

Vulcan Value Partners stated the following regarding KKR & Co. Inc. (NYSE:KKR) in its first quarter 2024 investor letter:

“KKR & Co. Inc. (NYSE:KKR), a large alternative investment manager, continues to execute well and was a material contributor for the second consecutive quarter. The company reported increased fundraising during the quarter and macro factors are becoming more favorable for the firm. We continue to believe that KKR is well-positioned for the future.”