5 Most Profitable New Stocks Today

4. GE HealthCare Technologies Inc (NASDAQ:GEHC)

Net Income (TTM): $1.54B

GE HealthCare Technologies Inc (NASDAQ:GEHC) was spun off from General Electric and started trading independently in 2023.

The stock has gained about 27% over the past one year.

As of the end of the third quarter of 2023, 41 hedge funds tracked by Insider Monkey had stakes in GE HealthCare Technologies Inc (NASDAQ:GEHC).

Sound Shore Management made the following comment about GE HealthCare Technologies Inc. (NASDAQ:GEHC) in its Q3 2023 investor letter:

“That said, current macro factors of higher inflation, rising rates, and a slowing economy are affecting stock prices in the short-term. Against this backdrop, many consumer stocks and financing-based business models declined in the third quarter. For example, GE HealthCare Technologies Inc. (NASDAQ:GEHC) was our largest detractor for the period. A recent spinout from GE, the company is the world’s largest medical imaging supplier with steady growth and higher margins. We purchased the stock in the first quarter of 2023 when it was trading at 14 times normalized earnings, a significant discount to peers. Our research concluded that GEHC’s profit margins were temporarily depressed due to the spinoff and one-time Research & Development charges, and that management’s plan for improvement was credible. The stock got off to a strong start early in the year, but returned the bulk of its gains as higher borrowing rates for their customers created demand uncertainty. As well, 15% of GE Healthcare’s business is from China, where demand has slowed along with the economy. We view these headwinds as temporary, and added to our position during the stock’s recent pullback.”