10 Best Stocks to Buy According to D1 Capital’s Daniel Sundheim

7. GE HealthCare Technologies Inc. (NASDAQ:GEHC)

D1 Capital Partners’s Stake as of Q4: $272.5 million

Number of Hedge Fund Holders: 50

GE Healthcare Technologies Inc. (NASDAQ:GEHC) is a healthcare company that develops products and services for diagnosing, treating, and monitoring patients. The firm spun off from General Electric in early 2023.

On March 27, GE HealthCare Technologies Inc. (NASDAQ:GEHC) announced the debut of the FDA-approved Flyrcado imaging agent for the diagnosis of suspected coronary artery disease at the 2025 American College of Cardiology Annual Scientific Session & Expo. The company also announced that it would be displaying its latest AI-powered invention, the CardIQ Suite.

On April 23, Piper Sandler analyst Jason Bednar lowered his price target for GE HealthCare Technologies Inc. (NASDAQ:GEHC) to $88 from $104. Despite this change, the analyst maintained an Overweight rating for the company. Bednar’s assessment highlights worries about the possible impact of tariffs and trade tensions on GE HealthCare’s profitability, especially given the company’s considerable revenue exposure to China and its part in sourcing. While he believed that the recent sell-off in GE HealthCare Technologies Inc. (NASDAQ:GEHC) shares was excessive, he advised that picking up the stock right now would either require a high risk tolerance or a longer-term investment horizon of more than a year.

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.”