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.
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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.
8. American Tower Corporation (NYSE:AMT)
% holding in portfolio: 8.73%
Upside Potential: 11.47%
A Massachusetts-based company, American Tower Corporation (NYSE:AMT) owns, operates, and develops wireless and broadcast communications infrastructure globally. As a leading real estate investment trust (REIT), the company’s portfolio exceeds 220,000 sites across five continents. The company enables mobile network coverage and digital connectivity with such a strong portfolio. Long-term lease agreements and rising 5G deployment immensely benefit the company, making it a formidable player in the market. The company’s resilient business model, which involves scale and predictable cash flows, allows it to overcome the transformations in the telecom sector.
American Tower Corporation (NYSE:AMT) accounts for 8.73% of Akre’s portfolio, suggesting significant confidence in the digital infrastructure’s staying power. Though the company’s revenue growth in 2024 remains low at 1%, a strong demand for the company’s assets is noted in the market. American Tower Corporation (NYSE:AMT)’s deployment of mid-band spectrums and 5G rollouts has garnered interest in the U.S. and European markets. Meanwhile, the company’s selling, general, and administrative expenses will be reduced by approximately $35 million in 2024, marking the company’s ability to turn revenue into net income. The revenue guidance for 2025 stands between $10.31 and $10.50 per share.
With an upside of 11.47%, American Tower Corporation (NYSE:AMT) earns its way into our list as one of the top Charles Akre stock picks for investors looking for passive growth, specifically among REITs.
7. Moody’s Corporation (NYSE:MCO)
% holding in portfolio: 12.6%
Upside Potential: 13.77%
Moody’s Corporation (NYSE:MCO) is a global provider of credit ratings, research, and risk analysis. Operating from its headquarters located in New York, the company delivers financial intelligence across fixed-income markets, regulatory compliance, and ESG evaluation through Moody’s Investors Service and Moody’s Analytics. The company differentiates itself from its peers, like Fitch Ratings, through data-rich risk models and integrated software platforms. Its revenue base is supported by bond issuance cycles and the expansion of structured finance and credit analytics services.
Moody’s Corporation (NYSE:MCO) commands a heavyweight 12.6% position among our list of Charles Akre’s stocks. The company aligns with Akre’s thirst for durable competitive advantages, and rightly so, since its revenue for 2024 has increased by 20%, reaching over $7 billion. Additionally, the company has asserted its leadership by being named the best rating agency by Extel for the 13th consecutive year. Moody’s Corporation (NYSE:MCO)’s plans for 2025 include repurchasing $1.3 billion in shares and achieving mid-single-digit revenue growth for the full year, thus sustaining their positive outlook in the upcoming periods.
The upside potential of Moody’s Corporation (NYSE:MCO), estimated by analysts, stands at 13.77%, adding value to the confidence in the company’s future growth potential and increasing its attractiveness to the market.
6. KKR & Co. Inc. (NYSE:KKR)
% holding in portfolio: 13.15%
Upside Potential: 14.85%
A global investment company, KKR & Co. Inc. (NYSE:KKR), specializes in private equity, credit, infrastructure, and real estate. Located in New York, the company was founded in 1976, and as of now, it manages over $500 billion in assets across diversified strategies. Leveraging its integrated capital markets business and active portfolio management, the company gains a competitive edge against dominant players like Blackstone and Apollo. The company’s flexible capital model allows for strategic acquisitions and helps develop sector-specific operating expertise.
KKR & Co. Inc. (NYSE:KKR), with a 13.15% portfolio weight, represents Akre’s solid confidence in the company’s structural ascent. In Q4 2024, the company reported fee-related EPS growth of 24% year-over-year: its second-highest quarterly figure in history. With $114 billion acquired as new capital in 2024, the company has planned to raise the annual dividend from $0.70 to $0.74 per share, demonstrating its operational confidence for the foreseeable future. KKR & Co. Inc. (NYSE:KKR) also has realized strong investment performance, indicated by a 14% appreciation in its private equity portfolio for 2024, contributing to confidence among investors.
The 14.85% upside potential placed KKR & Co. Inc. (NYSE:KKR) as one of Charles Akre’s best-performing stocks. The company is expanding its reach in alternative asset management, and the growth is recognized by Akre and analysts alike.
5. Visa Inc. (NYSE:V)
% holding in portfolio: 8.94%
Upside Potential: 15.76%
A California-based company, Visa Inc. (NYSE:V) is renowned as a global digital payment technology leader. The company focuses on facilitating transactions between consumers, merchants, financial institutions, and governments across more than 200 countries. Its portfolio includes credit, debit, and prepaid card processing, with extensive risk management systems and scalable infrastructure. Though Mastercard and American Express put up tough competition, Visa Inc. (NYSE:V) benefits from a strong brand network and data-rich analytics capabilities. It is also known for its strategic contactless and cross-border payment innovation investments.
Visa Inc. (NYSE:V) forms 8.94% of holdings in Charles Akre’s portfolio, representing a strong faith in the long-term wealth-building potential of the company. Its current growth also suggests strong capabilities, with the company having generated a net revenue of $9.5 billion in Q1 2025, reaching a year-over-year increase of 10%. Visa Inc. (NYSE:V) also saw positive international growth, with its cross-border volume, excluding intra-Europe, experiencing an increase of 16% in constant dollars. Having successfully renewed and expanded various key partnerships worldwide, the company aims to bring generative AI into the payment environment and achieve revenue growth of $39.6 billion in 2025.
Bolstered by a 15.76% upside, Visa Inc. (NYSE:V) attracts investors focused on restructuring their portfolio with high-growth potential equities with the added value of Akre’s confidence.
4. Mastercard Incorporated (NYSE:MA)
% holding in portfolio: 16.86%
Upside Potential: 16.12%
Mastercard Incorporated (NYSE:MA) provides transaction processing and related services for credit, debit, prepaid, and commercial payment cards. The company is among the largest payment networks, emphasizing cybersecurity, data services, and financial inclusion. It is headquartered in New York and serves banks, merchants, and governments globally. Mastercard Incorporated (NYSE:MA), a key rival to Visa, differentiates through AI-driven fraud detection and strategic fintech partnerships. Its multi-rail payment infrastructure and global acceptance footprint give it a strong foothold in the digital economy.
Mastercard Incorporated (NYSE:MA) dominates our list regarding percentage holding in the portfolio, with an impressive 16.86% stake in Charles Akre’s portfolio. The confidence is rightly placed as the company achieves a net revenue growth of 16% year-over-year on a non-GAAP currency-neutral basis in the fourth quarter of 2024. By focusing on renewals and expansions, the company has successfully enhanced its partnership in 2024 and expects an increase in international growth in 2025. The $80 trillion addressable commercial market also provides Mastercard Incorporated (NYSE:MA) with great opportunities to capitalize on, thus gaining a positive reception for its stocks in the market.
Analysts have estimated an upside potential of 16.12%, reflecting market confidence. The upside potential makes Mastercard Incorporated (NYSE:MA) an essential pillar of modern financial infrastructure.
3. Roper Technologies, Inc. (NASDAQ:ROP)
% holding in portfolio: 6.66%
Upside Potential: 19.24%
Based in Florida, a diversified technology company, Roper Technologies, Inc. (NASDAQ:ROP) develops software and engineered products for niche markets in healthcare, transportation, and education. The company has an asset-light business model that emphasizes recurring revenues through SaaS and cloud-based platforms. In the market, the company’s decentralized operating model supports quick acquisition integration and organic growth in tough competition. Its portfolio comprises high-margin, mission-critical software solutions that provide enduring value across specialized industries with low cyclicality.
Roper Technologies, Inc. (NASDAQ:ROP) has earned a 6.66% slot in Akre’s portfolio. Though low compared to most other stocks on our list, the holding represents a bet on the company’s future excellence. Organic sales balanced with inorganic sales have contributed to a free cash flow growth of 14% in 2024. Having successfully deployed $3.6 billion in vertical software businesses, leading the market, the company anticipates a total revenue growth of 10% or more in 2025. In Q4 2024, Roper Technologies, Inc. (NASDAQ:ROP) also announced that they have $5 billion in acquisition firepower, making the company completely ready to capture the M&A opportunities in the future.
With a 19.24% upside, Roper Technologies, Inc. (NASDAQ:ROP) may not headline the usual tech chatter. However, it is one of Charles Akre’s top-performing stocks, making it a worthy investment for those seeking long-term growth.
2. Danaher Corporation (NYSE:DHR)
% holding in portfolio: 3.52%
Upside Potential: 21.74%
Washington-based company Danaher Corporation (NYSE:DHR) is a global science and technology innovator. The company delivers solutions in life sciences, diagnostics, and biotechnology. Its portfolio includes Cepheid, Leica Biosystems, and IDT, among others. Employing the Danaher Business System for continuous operational improvement, the company gains an advantage over its peers in the market. Its growth strategy involves mergers and acquisitions. With this strategy and a focus on essential healthcare tools and consumables, the company ensures significant value creation in high-barrier end markets.
With the lowest weight of 3.52% in the portfolio, Danaher Corporation (NYSE:DHR) may seem modest, but its inclusion warrants a deeper look into the stock’s future potential. Though there is a 1.5% decline in core revenue, the company reported growth that is better than anticipated in areas including the bioprocessing and life sciences instruments businesses. Additionally, the injection of $7 billion into strategic acquisitions and share repurchases has enabled Danaher Corporation (NYSE:DHR) to strengthen its competitive position in the market. With these investments, the company expects a growth in revenue of 3% for the full year of 2025.
A 21.74% potential gain puts it among the best of Charles Akre’s stock ideas for investors. With such high upside potential, the analysts believe in the company’s operational excellence.
1. Brookfield Corporation (NYSE:BN)
% holding in portfolio: 9.42%
Upside Potential: 22.07%
A Canadian company, Brookfield Corporation (NYSE:BN) is a global alternative asset manager with over $900 billion in assets under management across real estate, infrastructure, renewable power, private equity, and credit. Through its subsidiaries, the company operates long-term assets in capital-intensive sectors. Blackstone and KKR intensify the market competition. However, Brookfield Corporation (NYSE:BN) uses patient capital, operational expertise, and sustainability-driven strategies to move up in the market. The company’s integrated platform allows for cross-sector synergies.
Brookfield Corporation (NYSE:BN) commands a notable 9.42% portfolio weight, making the stock a strong pick among Charles Akre’s portfolio. Their distributable earnings before realizations in 2024 remain positive, with a 15% increase, reaching $4.9 billion. Brookfield Corporation (NYSE:BN) also experienced significant inflows of over $135 billion, resulting in the company’s wealth solutions business becoming a leading annuity writer in the U.S. For 2025, the company expects continued growth in the business as well. Owing to its extensive pipeline of asset sales, the company has an unrealized carried interest of $11.5 billion. It also has approximately $160 billion in deployable capital available for funding new investments.
Brookfield Corporation (NYSE:BN) has received a high upside potential estimate of 22.07% from analysts due to its diversified exposure to real estate, infrastructure, and renewable energy, thus making it our number one pick for Charles Akre’s best stock picks.
Brookfield Corporation (NYSE:BN) ranks first among Charles Akre’s 10 stock picks with huge upside potential. While we acknowledge the potential of BN, 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 BN but trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
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