We recently published a list of 10 Best Stocks to Buy According to Billionaire David Einhorn. In this article, we are going to take a look at where HP Inc. (NYSE:HPQ) stands against other best stocks to buy according to billionaire David Einhorn.
David Einhorn is a highly regarded hedge fund manager, who co-founded Greenlight Capital in 1996. Einhorn shot to fame after he correctly forecasted the collapse of Lehman Brothers during the financial crisis. He graduated from Cornell University and garnered his skills in the hedge fund industry under the mentorship of Gary Siegler and Peter Collery at the SC Fundamental Value Fund. Due to his prowess in long/short equity strategies, David Einhorn is being tagged as one of the most successful hedge fund managers.
Greenlight Capital’s Investment Philosophy
Greenlight Capital specializes in value-oriented strategies. The investment management firm primarily focuses on long and short positions in the listed equity securities and selectively engages in distressed debt investments during favorable economic cycles. Einhorn is a highly-regarded hedge fund manager who uses a long-short investment strategy. Because of this strategy, he can capitalize on both rising and falling markets, providing him flexibility during uncertainties.
The Greenlight Capital funds (the Partnerships) managed to return 7.2% in 2024, net of fees and expenses, as compared to 25.0% for the broader S&P 500 index. However, since the inception of Greenlight Capital, the Partnerships returned 3,117% cumulatively or 12.9% annualized, both net of fees and expenses. Over the same period, the S&P 500 index delivered 1,421% or 10.0% annualized. Notably, Greenlight’s investors earned $5.7 billion, net of fees and expenses, since inception.
READ ALSO: 7 Best Stocks to Buy For Long-Term and 8 Cheap Jim Cramer Stocks to Invest In.
Greenlight Capital’s Views on Current Market Dynamics
CNBC, while quoting the comments of Greenlight Capital’s David Einhorn, mentioned that speculative behavior in the current bull market has reached beyond common sense. As per the firm’s Q4 2024 investor letter, the investors continue to experience a ‘Fartcoin’ stage of the market cycle. To give a brief context, Fartcoin is a cryptocurrency that came into existence late last year. Apart from trading and speculation, no other obvious purpose is being served and no need that is not being served elsewhere is being fulfilled. Einhorn went on to add that the investors might be leaving the Fartcoin stage of the market and entering the Trump (and Melania) memecoin stage. While the certainty about the possible outcome remains unpredictable, it is going to be wild, says David Einhorn.
Amidst these trends, let us now have a look at the 10 Best Stocks to Buy According to Billionaire David Einhorn.
Our Methodology
To list the 10 Best Stocks to Buy According to Billionaire David Einhorn, we selected the top 10 stocks in Greenlight Capital’s portfolio as per its Q4 2024 13F filing. We settled on the hedge fund’s 10 biggest holdings. Finally, we ranked the stocks in ascending order based on the value of Greenlight Capital’s equity stakes. Additionally, we have mentioned the hedge fund sentiment around each stock, as of Q4 2024.
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).
A laptop, showing off the companys sleek notebook computers and workstations.
HP Inc. (NYSE:HPQ)
Greenlight Capital’s Stake Value: $68.8 million
Number of Hedge Fund Holders: 48
HP Inc. (NYSE:HPQ) offers personal computing, printing, 3D printing, hybrid work, gaming, and other related technologies. In the broader PC market, critical trends like remote work, gaming, and the requirement for more powerful computing solutions for AI and data analysis can fuel demand for high-performance devices. The company has announced a definitive agreement to acquire key AI capabilities from Humane, which includes their AI-powered platform Cosmos, highly skilled technical talent, and intellectual property with over 300 patents and patent applications. Notably, the acquisition strengthens HP Inc. (NYSE:HPQ)’s transformation into a more experience-led company.
This investment is expected to rapidly accelerate HP Inc. (NYSE:HPQ)’s ability to develop a new generation of devices that orchestrate AI requests both locally and in the cloud. Humane’s AI platform Cosmos can help the company create an intelligent ecosystem throughout all the HP devices from AI PCs to smart printers and connected conference rooms. The company remains focused on the future of work, demonstrating opportunities in AI and premium product categories. Its Personal Systems segment is expected to outpace market growth, fueled by innovation in AI PCs and premium categories. HP Inc. (NYSE:HPQ) has made significant progress in establishing a globally diverse supply chain, and by FY 2025 end, it anticipates that over 90% of HP products sold in North America will be built outside of China.
Overall, HPQ ranks 9th on our list of the 10 Best Stocks to Buy According to Billionaire David Einhorn. While we acknowledge the potential of HPQ as an investment, our conviction lies in the belief that some deeply undervalued AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for a deeply undervalued AI stock that is more promising than HPQ but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
