11 Best Young Stocks to Buy According to Hedge Funds

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

Number of Hedge Fund Holders: 64

GE HealthCare Technologies Inc. (NASDAQ:GEHC) develops, manufactures, and markets products, services, and complementary digital solutions. These are used in the diagnosis, treatment, and monitoring of patients in the US, Canada, and internationally. It has four segments: Imaging, Advanced Visualization Solutions/AVS, Patient Care Solutions/PCS, and Pharmaceutical Diagnostics/PDx.

The Pharmaceutical Diagnostics segment generated 8% year-over-year organic revenue growth in Q1 2025 due to the introduction of new products. This growth was also driven by a focus on radiopharmaceuticals. In Q1 2025, GE Healthcare achieved the first commercial doses of Flyrcado, which is its novel PET myocardial perfusion imaging agent designed to detect coronary artery disease. This tracer has also received CMS pass-through pricing, paving the way for a successful rollout.

The company also strengthened its position by acquiring the remaining 50% stake in Nihon Medi-Physics/NMP in Q1. NMP is a radiopharmaceutical company in Japan that is expected to contribute ~$150 million of inorganic revenue over the remaining three quarters of 2025. Patrick Wood from Morgan Stanley maintained a Hold rating on GE Healthcare with a price target of $78 on May 7.

Oakmark Fund stated the following regarding GE HealthCare Technologies Inc. (NASDAQ:GEHC) in its Q4 2024 investor letter:

“GE HealthCare Technologies Inc. (NASDAQ:GEHC) is a leading global medical technology company that was spun off from General Electric in January 2023. As a standalone company, we expect GE HealthCare to benefit from increased focus, better aligned management and incentives, and an improved corporate culture. We believe these changes will help drive higher margins and organic growth. In addition, we think GE HealthCare is well-positioned to capitalize on technology trends as a greater portion of the value proposition comes from AI-enabled software and a shift toward precision care. A lack of appreciation for the company’s self-help potential coupled with short-term concerns around weak demand in China provided us with the opportunity to purchase shares at a low valuation relative to other high-quality medical technology companies and at the lowest price relative to the S&P 500 since the IPO.”