1. GE HealthCare Technologies Inc. (NASDAQ:GEHC)
Trian Partners’ Stake: $314,987
Number of Hedge Fund Holders: 64
Analyst Upside Potential: 57.93%
GE Healthcare Technologies Inc. (NASDAQ:GEHC) is an international healthcare provider that specializes in medical technologies, diagnosis, and cloud-first artificial intelligence-enabled solutions for healthcare. It operates through key segments including Imaging, Advanced Visualization Solutions, Patient Care Solutions, and Pharmaceutical Diagnostics.
GE Healthcare Technologies Inc. (NASDAQ:GEHC) is renowned for its research and development capabilities. On April 10, the company reported a collaboration with Cincinnati Children to set up the Care Innovation Hub, which will bring together researchers to work on projects related to the next generation of pediatric medical imaging in MR, CT, molecular imaging, ultrasound, and more. Earlier on March 28, the company unveiled its Vibe CT system, which is an advanced computed tomography scanner specifically designed to enhance cardiac imaging.
In addition to these developments, the company also delivered growth in its fiscal fourth quarter of 2024. During the quarter its revenue grew 2% year-over-year, along with net income margins which improved from 7.7% to 13.5%. BTIG analyst Ryan Zimmerman remains a Buy on the stock with a price target of $95. GE Healthcare Technologies Inc. (NASDAQ:GEHC) is the best billionaire Nelson Peltz’s stock picks with the highest upside potential.
River Road Large Cap Value Select Fund stated the following regarding GE HealthCare Technologies Inc. (NASDAQ:GEHC) in its Q4 2024 investor letter:
“As of December 31, the portfolio held 29 positions, up four positions from Q3. During Q4, the largest sector increase was 736 bps within industrials, while the largest decrease was -276 bps within consumer discretionary. We established five new positions and eliminated one position.
We eliminated GE HealthCare Technologies Inc. (NASDAQ:GEHC) (GEHC, 2.5 conviction) during the quarter as the stock traded near its assessed value and we have some concerns around the demand shortfalls in China (11% of revenue). The management team has demonstrated strong execution since its spinoff from GE in January 2023 with 140 bps of margin expansion and 400 bps of organic topline growth. We placed GEHC on our watch list and would happily repurchase shares if it trades at a sufficient discount.”
While we acknowledge the potential of GEHC to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than GEHC but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
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