In this article, we will look at the Billionaire Nelson Peltz’s 8 Stock Picks with Highest Upside Potential.
Nelson Peltz is one of the renowned figures in the financial world mainly due to his role as a billionaire who has served as a board member of some large corporations and also due to being the co-founder of Trian Fund Management. As per Forbes, his current net worth is $1.6 billion whereas Trian Fund Management has around $8.5 billion as assets under management.
Nelson Peltz was born in 1942 and entered the business world through his family’s wholesale food distribution company A. Peltz & Sons. He started his journey as a delivery truck driver and later transformed the company with his brother Peter May. Peltz shifted the gears of his family business by transitioning its focus to international frozen foods and launched a new brand called Flagstaff Corp, which later went public and was sold for $150 million in 1972.
Later, Peltz turned his modest income to build a multi-million fortune by a series of bold moves, starting with leveraged buyouts financed with junk bonds. For reference, junk bonds are bonds with a higher risk of default as compared to other bonds issued by corporations and governments. However, because of this higher risk investors are compensated with lucrative interest rates, therefore junk bonds are also high-yield bonds.
Notably, Peltz acquired Triangle Industries in 1983 and later sold it for $4 billion 5 years later. He also acquired Snapple, turned its business to profitability, and sold it 3 years later at a significant upside. These numerous acquisitions of underperforming and undervalued businesses, being sold at profitability, demonstrate his ability to fix businesses. Nelson Peltz has a famous quote that says:
“I spent most of my career operating businesses and fixing businesses, not staring at a Bloomberg screen.”
The form of investment that billionaire Peltz follows is known as Activist Investment, which essentially means an investor or a group of investors buys a stake in a public company to influence the operations of the company. Mostly, activist investors do this by taking a seat on the board of directors. Peltz defines an activist investor in a quote that says:
“The activists play the balance sheet by selling a division to buy back stock and leveraging the balance sheet and buying back more stock.”
Currently, Peltz is the co-founder of Trian Fund and also serves on the boards of some major public corporations. As of March 2024, Trian Fund Management oversees discretionary assets totaling $6,202,444,791 for 25 clients.
With that let’s take a look at billionaire Nelson Peltz’s 8 stock picks with the highest upside potential.
Nelson Peltz of Trian Partners
Our Methodology
To compile the list of billionaire Nelson Peltz’s 8 stock picks with the highest upside potential, we sifted through 13F filings of Trian Partners, from Insider Monkey. From these filings, we checked each stock’s upside potential from CNN and ranked the stocks in ascending order of the upside potential. We have also added the Trian Partners stake in each company and the hedge fund sentiment around each stock. Please note that the data was recorded on April 21, 2025.
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).
Billionaire Nelson Peltz’s 8 Stock Picks with Highest Upside Potential
8. Janus Henderson Group plc (NYSE:JHG)
Trian Partners’ Stake: $1,355,337,534
Number of Hedge Fund Holders: 39
Analyst Upside Potential: 12.32%
Janus Henderson Group plc (NYSE:JHG) is a global asset management company based in the United Kingdom. It specializes in investment management across a diverse range of asset classes including equities, fixed income, and alternatives.
On April 9, TD Cowen analyst William Katz maintained a Buy rating on the stock with a price target of $51. The company turned its outflows into inflows in fiscal 2024. It achieved $2.4 billion in net inflows from $31 billion in outflows last year. This was driven by diversified income generation in North America, EMEA, Latin America, and Asia Pacific. Moreover, Janus Henderson Group plc (NYSE:JHG) also grew its assets under management by 13% year-over-year to reach $378.7 billion.
Management noted that they are focusing on core businesses and long-term investment performance. It is leveraging its existing strengths through adjacent products and geographies. The company invested in its brand during the year to launch the Brighter Future Project. Janus Henderson Group plc (NYSE:JHG) is one of billionaire Nelson Peltz’s stock picks with the highest upside potential.
7. Invesco Ltd. (NYSE:IVZ)
Trian Partners’ Stake: $405,071,766
Number of Hedge Fund Holders: 39
Analyst Upside Potential: 13.28%
Invesco Ltd. (NYSE:IVZ) is an independent investment management company that serves individual investors, institutions, and other high-net-worth people. The company operates through various investment strategies across asset classes such as equity, fixed income, alternatives, and more.
Invesco Ltd. (NYSE:IVZ) has been delivering strong long-term net inflows despite the market volatility. Last year, which is fiscal 2024, the company generated net inflows of $65 billion, representing 5% organic growth. This was driven by higher revenue, disciplined expenses, and a strong performance by the company’s global ETF QQQM. Management noted that the ETF began trading with around $2.5 billion in assets and finished the fourth quarter with record AUM and revenue growth. The ETF has grown to nearly $40 billion in assets driven by 7% revenue growth in Q3 2024 and 31% growth in Q4 2024.
Moreover, management also indicated its plan to grow its operations within its China Joint Venture, with a particular focus on launching six new products related to ETFs. Despite the financial progress of Invesco Ltd. (NYSE:IVZ), analysts have mixed sentiments regarding the financial sector due to tariff uncertainty. The overall analyst sentiment for the stock remains positive with analysts expecting a 13.28% upside from current levels. It is ranked as one of the billionaire Nelson Peltz’s stock picks with the highest upside potential.
6. The Allstate Corporation (NYSE:ALL)
Trian Partners’ Stake: $59,132,934
Number of Hedge Fund Holders: 71
Analyst Upside Potential: 16.61%
The Allstate Corporation (NYSE:ALL) is an insurance provider that covers a range of needs for both individuals and businesses. Its portfolio ranges from auto insurance to life and health insurance. The company operates through a wide network of Allstate agents, independent agents, benefits brokers, and online channels.
On April 22, Joshua Shanker, an analyst from Bank of America Securities, reiterated the Buy rating on the stock while keeping the price target the same at $279. The company faced higher than anticipated catastrophe losses during the fiscal fourth quarter of 2024, which increased $294 million year-over-year to reach $315 million. This was mainly due to Hurricane Milton and re-estimates for Hurricane Helene. Nevertheless, the analyst noted that The Allstate Corporation (NYSE:ALL) was able to manage these losses effectively and has shown resilience by adjusting its premium written projections upwards. The company increased its premiums by 15.3% year-over-year reflecting higher average premiums and policies in force growth of 2.4%.
Looking ahead, The Allstate Corporation (NYSE:ALL) expects to close the sale of its employer voluntary benefits business to Stancorp Financial for $2 billion and health business to Nationwide for $1.25 billion. Both deals are expected to close in 2025. Analysts expect more than 16% upside for the stock and billionaire Nelson Peltz has a stake worth more than $59 million. It is one of the billionaire Nelson Peltz’s stock picks with the highest upside potential.
5. Ferguson Enterprises Inc. (NYSE:FERG)
Trian Partners’ Stake: $214,753,648
Number of Hedge Fund Holders: 72
Analyst Upside Potential: 20.38%
Ferguson Enterprises Inc. (NYSE:FERG) is one of the largest distributors of heating, plumbing, ventilation, air conditioning, and other related products in North America. It operates by serving residential and non-residential contractors to supply value-added construction and renovation products.
On April 16, Ferguson Enterprises Inc. (NYSE:FERG) announced two major acquisitions including Independent Pipe & Supply Corp. and National Fire Equipment Ltd. along with National Fire Fabrication Ltd. These acquisitions are anticipated to enhance the company’s business in commercial and fire & fabrication business while expanding the market position in both the US and Canada.
The company on March 11, released its second-quarter results, highlighting sales growth of 3% to reach $6.9 billion. Management noted that while the sales volume increased by 5%, it was partly offset by the continued deflation. As a result, the company has also adjusted its full-year operating margins outlook for the year from 9.0% – 9.5% to 8.3% – 8.8%. Nevertheless, Parnassus Core Equity Fund in its Q4 2024 investor letter stated that Ferguson Enterprises Inc. (NYSE:FERG) is expected to benefit from the tailwinds of the housing shortage and aging infrastructure. Here’s what the fund said about the company:
“We also added Industrials sector holding Ferguson Enterprises Inc. (NYSE:FERG), a leading distributor of plumbing supplies and construction equipment. Ferguson’s highly efficient operations, extensive distribution networks and broad product offerings give the company clear leadership over smaller, local competitors. Ferguson’s scale advantages are expected to increase as it consolidates the fragmented industry structure. Additionally, the structural tailwinds of aging infrastructure and housing shortages should support Ferguson’s long-term organic growth. Led by a tenured management team with a strong track record, the company is well positioned going forward, we believe.”
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.”
3. The Wendy’s Company (NASDAQ:WEN)
Trian Partners’ Stake: $497,557,973
Number of Hedge Fund Holders: 33
Analyst Upside Potential: 26.18%
The Wendy’s Company (NASDAQ:WEN) is a quick-service restaurant chain with fast-food restaurants worldwide. The company operates both company-owned and franchised restaurants, in fact, franchised restaurants make up a significant part of its revenue. Its main segments include Wendy’s US, Wendy’s International, and Global Real Estate & Development.
On March 6, The Wendy’s Company (NASDAQ:WEN) unveiled its next chapter of growth. Management shared its plans to update the core menu to meet customer demands while indicating its plans to increase investment in technology and operations to meet customer experience. The company also expects to add 1,000 new restaurants internationally by 2028, this is expected to keep the growth meter ticking with 3% to 4% annual net unit growth and 5% to 6% annual systemwide growth.
The fiscal 2024 results also showed resilience. It marked the 14 consecutive year of same-restaurant sales growth. During the fourth quarter alone, The Wendy’s Company (NASDAQ:WEN) grew its systemwide sales by 5.4% to reach $3.7 billion. Moreover, on April 22, Truist analyst Jake Bartlett lowered the firm’s price target on the stock to $17 from $19, while keeping a Buy rating. It is one of the billionaire Nelson Peltz’s stock picks with the highest upside potential.
2. Solventum Corporation (NYSE:SOLV)
Trian Partners’ Stake: $559,053,823
Number of Hedge Fund Holders: 41
Analyst Upside Potential: 26.77%
Solventum Corporation (NYSE:SOLV) is an international healthcare company that develops and sells various medical products. The company operates through four business segments including Medical Surgical, Dental Solutions, Health Information Systems, and Purification and Filtration. Through these segments, the company caters to various patient needs such as providing advanced wound care solutions, a suite of dental and orthodontic products, and even software solutions for healthcare providers.
As per a March 21 report, Stifel Nicolaus analyst Rick Wise maintained a Buy rating on the stock with a price target of $88. Moreover, on March 21, Solventum Corporation (NYSE:SOLV) announced entering into a partnership with SprintRay to transform the digital dentistry market by enabling high-quality, permanent same-day dental restorations through chairside 3D printing technology. The collaboration focuses on developing and selling durable dentistry products.
The company delivered growth in its fiscal fourth quarter results for 2024. Solventum Corporation (NYSE:SOLV) reported net sales of $2.074 billion up 1.9% year-over-year and 23% organically. Dental Solutions was the largest contributor to growth as its revenue grew 3% year-over-year to reach $315 million. Looking ahead, management expects organic sales growth of 1.0% to 2.0% for fiscal 2025, with free cash flow between $450 million to $550 million.
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.”
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.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
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