In this article, we will be looking at 10 stock picks from Charles Akre with tremendous upside potential.
The current market environment of the U.S. has volatility as its new norm, and prudent investors are seeking refuge in the guidance of seasoned experts. Among these experts is Charles Akre, the founder of Akre Capital Management. Charles Akre has curated a list of stocks poised for notable appreciation using his disciplined investment approach. Today, we will be looking at 10 of these stocks, but we will also take a look at their upside potential. Before we dive into our picks, it is necessary to understand the market context that makes these stocks more attractive.
READ ALSO: 10 Dividend Paying Stocks Insiders Are Buying and 20 Takeover Rumors Hedge Funds Are Buying.
The performance of the market indices in the recent week suggests renewed investor confidence in equities. As per a report by the Wall Street Journal, this performance reflects optimism despite the economic data releases and corporate earnings reports showing adverse growth. Such market movements stress the significance of adopting a strategy when selecting a stock. The most often used and favored strategy involves letting yourself be guided by experienced investors like Akre.
The forefront of this resurgence is that many growth stocks, including small caps, have outperformed their value counterparts in 2023. It does not undermine the value equities but projects the current preferences of the market for companies with significant growth prospects. Akre’s selections are in a perfect position to capitalize on this growing trend.
Investors must understand that such outperformance is not just a short-term phenomenon, as historical data indicate that growth stocks have been consistent deliverers of massive returns over a longer period. From 2009 onward, growth stocks have dominated many investors’ portfolios, except for a short period in 2022 when interest rate hikes affected their performance. According to CNBC, this long-term trend adds value to the investment strategy of focusing on growth.
Additionally, the need to identify high-quality growth stocks is further emphasized with the market gains concentrated on a select group of mega-cap stocks. For instance, the Magnificent Seven has a collective market value of $11.5 trillion. Akre’s investment philosophy underpins this principle of making portfolio decisions by considering high-quality growth stocks.
In this context, the ten picks we have brought you here from Akre’s portfolio are not just random selections but a list that is put together after going through the company’s fundamentals and long-term growth potential with a keen eye for details. Akre’s approach remarkably aligns with the current market environment, where discerning investors tend to overcome market challenges by strengthening their portfolios using growth-oriented companies.
Before we take a look at our top picks, it is imperative for investors to appreciate the strategic considerations that helped us in putting together our list. Our choices are not about merely capitalizing on current market trends. We ensured that our list results from a deep understanding of the factors driving sustainable growth.
So, stay with us as we count down from 10 to 1, Charles Akre’s top 10 picks. The top 5 on our list, with their substantial upside potential, might just be what your portfolio is seeking.
Charles Akre of Akre Capital Management
Our Methodology
We compiled our list of Charles Akre’s 10 stock picks with huge upside potential by following a few criteria. All the stocks in our list are part of Charles Akre’s portfolio. Following this crucial criterion, we looked for stocks with a high percentage holding in the portfolio. This is to ensure that the article covers the top picks from renowned investors. Then, we looked at the upside potential of the stocks since they represent the future appreciation value of the investors’ capital. We have used this upside potential to rank our picks as well. All the data in the article was taken from financial databases and analyst reports, with all information updated as of April 26, 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).
10. CoStar Group, Inc. (NASDAQ:CSGP)
% holding in portfolio: 5.76%
Upside Potential: 5.05%
Headquartered in Washington, D.C., CoStar Group, Inc. (NASDAQ:CSGP) offers information, analytics, and online marketplaces for the commercial real estate industry. Through a range of platforms, including LoopNet, Apartments.com, and CoStar, the company provides extensive property listings, valuation data, and market intelligence. Competing with Zillow in some verticals, CoStar Group, Inc. (NASDAQ:CSGP) establishes its presence in the industry by maintaining a distinct advantage in commercial data comprehensiveness. The company’s expansion into residential real estate analytics has turned it into a critical infrastructure provider in the global property information ecosystem.
With a significant position of 5.76% holding in Charles Akre’s portfolio, CoStar Group, Inc. (NASDAQ:CSGP) signals a strong conviction in its long-term prospects. Concerning its current potential, the company has generated revenue of $2.74 billion in 2024, an 11% year-over-year increase. Additionally, in Q4 2024, the company also reported its 55th consecutive quarter of double-digit revenue growth, implying a strong consistency in the performance. Per the company guidance for 2025, it anticipates a full-year revenue range of $2.985 billion to $3.015 billion, approximately 10% year-over-year revenue growth, thus justifying their positive outlook among investors.
CoStar Group, Inc. (NASDAQ:CSGP) has an upside potential of 5.05%, which is modest. Hence, the substantial holding in the portfolio suggests confidence in the company’s ability to create value beyond this current estimation.
9. O’Reilly Automotive, Inc. (NASDAQ:ORLY)
% holding in portfolio: 9.18%
Upside Potential: 11.36%
O’Reilly Automotive, Inc. (NASDAQ:ORLY), based in Missouri, operates one of the largest retail networks of auto parts stores across the U.S. and Mexico. Both professional installers and do-it-yourself customers form part of the customer base. The company reaches these customers with a wide range of aftermarket automotive parts, tools, and accessories. Against tough competitors like Advance Auto Parts, the dual-market approach, high inventory turnover, and proprietary distribution system make the company stand out. It strongly retains its market share by combining its client-centric service model with regional hub networks.
By occupying 9.18% of the portfolio, O’Reilly Automotive, Inc. (NASDAQ:ORLY) stands out as one of Charles Akre’s best stock picks. The primary reason behind this is the consistency of sales growth. When announcing its results for 2024, the company noted a 2.9% increase in comparable store sales. The year also marks the 32nd consecutive year of growth for the company. For 2025, it plans to open 210 new stores, contributing to O’Reilly Automotive, Inc. (NASDAQ:ORLY)’s net earnings per share (EPS) guidance of $42.90 to $43.40.
With the market environment backing the stock, analysts have estimated a double-digit upside of 11.36% for O’Reilly Automotive, Inc. (NASDAQ:ORLY), making it a worthy choice for investors seeking stocks with Akre’s confidence in its capacity.
