Norwegian Billionaire Halvorsen’s Top 10 Stock Picks

7. Fortive Corporation (NYSE:FTV)

Viking Global’s Q3 Stake: $931.1 million

Number of Hedge Fund Holders: 31

Fortive Corporation (NYSE:FTV) focuses on delivering critical technologies for connected workflow solutions, encompassing the design, development, manufacturing, and distribution of professional and engineered products, software, and services.

In Q3 2024, Fortive Corporation (NYSE:FTV) demonstrated strong financial performance, with adjusted earnings per share climbing 14% and free cash flow growing by 12%. The Advanced Health & Sustainability Solutions (AHS) segment stood out, achieving 9% organic growth and a 310 basis point year-over-year improvement in operating margins. Meanwhile, the Product Realization (PT) segment experienced mixed results, with a 4% decline in core growth but a 70 basis point improvement in margins. Fortive’s free cash flow remains a bright spot, outperforming expectations, and the company is expected to prioritize share buybacks throughout fiscal year 2025.

On November 13, UBS initiated coverage of Fortive Corporation (NYSE:FTV) with a Neutral rating and set a price target of $84. UBS noted that Fortive’s relative valuation within the broader Electrical Equipment/Multi-Industry (EE/MI) complex has been under pressure. According to UBS, the decline in Fortive’s valuation began in 2021, coinciding with the market’s increased focus on secular trends such as artificial intelligence and nearshoring, which have drawn attention away from Fortive’s core offerings.