Billionaire Nelson Peltz’s 8 Stock Picks with Highest Upside Potential

4. GE Aerospace (NYSE:GE)

Trian Partners’ Stake: $672,199,226

Number of Hedge Fund Holders: 101

Analyst Upside Potential: 23.76%

GE Aerospace (NYSE:GE) is an international leader in aerospace services and systems. It operates through two main business segments including Commercial Engines & Services and Defense & Propulsion Technologies. The company has around 45,000 commercial and 25,000 military aircraft in operation worldwide.

On April 16, J.P. Morgan analyst Seth Seifman maintained a Buy rating on the stock. The analyst noted that GE Aerospace (NYSE:GE) met market expectations in Q1 despite the challenging environment characterized by the tariffs and lower expected departures. The Commercial Services and Equipment sales of the company performed well to offset the challenges. During the fiscal first quarter of 2025, GE Aerospace (NYSE:GE) achieved a 12% growth in total orders resulting in revenue growing by 11% to reach $9.9 billion.

Looking forward, the company plans to invest nearly $1 billion in US manufacturing and technology to enhance production and improve capabilities. Despite the ongoing macroeconomic challenges, the future of the company remains bright with a strong contract line including commitments with ANA Holdings, Malaysia Aviation Group, Korean Air, and a US Air Force contract valued at $5 billion for F110-GE-129 engines. It is one of the billionaire Nelson Peltz’s stock picks with the highest upside potential.

Aristotle Atlantic Core Equity Strategy stated the following regarding GE Aerospace (NYSE:GE) in its Q4 2024 investor letter:

“GE Aerospace (NYSE:GE) designs and produces commercial and defense aircraft engines, integrated engine components, electric power, and mechanical aircraft systems. The industry has high entry barriers and is concentrated among few players. Despite its cyclical nature, the demand for travel is driven by global middle-class growth. Boeing and Airbus have long order books, ensuring steady demand for engines and spare parts. The company also benefits from high-margin services for existing aircraft fleets, with services accounting for 70% of its commercial engine business. GE Aerospace serves customers worldwide.

We see GE Aerospace making significant strides in its commercial engine business, which is expected to boost future services revenue growth. Over the past five years, the company has undergone substantial restructuring and simplification, including divesting its healthcare and energy businesses. The company now operates in three segments: Commercial Engines & Services (CES), Defense & Propulsion Technologies (DPT) and Insurance. Long-term revenue guidance is for high single-digit growth, and management has a goal of $10 billion in annual operating profit by 2028, with an expected 20% annual earnings growth. Following years of restructuring, we see GE Aerospace now positioned to return capital to shareholders through dividends and share repurchases.”