In this article, we will look at the 8 Best Holding Company Stocks to Invest In Now.
Holding company stocks are getting a closer look as investors spend more time searching for value that is not always obvious on the surface. In a market where parts of the spectrum still look fully priced, holding companies can stand out because the parent often trades below what its underlying assets may be worth. Lazard frames it directly, saying its discounted-assets strategy looks for companies trading at a “discount to their estimated net asset value,” including “holding companies,” with “attractively priced underlying holdings.” In other words, the appeal is not just diversification for its own sake. It is the chance to buy a collection of assets more cheaply than the market may be valuing the parts on their own.
That same logic shows up in specialist value commentary. Asset Value Investors says it invests in “holding companies and other group structures” trading at discounts to their “sum-of-the-parts (“SOTP”) value.”
Against this backdrop, holding company stocks deserve a closer look, especially those with high-quality underlying assets, sensible capital allocation, and a realistic path toward closing the gap between market price and underlying value. That brings us to the 8 Best Holding Company Stocks to Invest In Now.
Our Methodology
We used the Finviz screener to identify holding company stocks that are viewed favorably by analysts. We then limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. These stocks are also popular among analysts and elite hedge funds.
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 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
8. Compass Diversified (NYSE:CODI)
On April 6, 2026, B. Riley analyst Timothy D’Agostino raised the price target on Compass Diversified (NYSE:CODI) to $10.50 from $8 and maintained a Neutral rating, calling the sale of the Sterno subsidiary “positive” while noting the firm is waiting on additional potential divestitures.
On March 29, 2026, Compass Diversified agreed to sell the foodservice business of its majority-owned subsidiary, SternoCandleLamp Holdings, to Archer Foodservice Partners for an enterprise value of $292.5M, subject to working capital and other adjustments. The business generated approximately $30.3M in adjusted EBITDA in 2025, including shared overhead that will remain post-transaction. The company plans to use net proceeds to repay outstanding debt and expects its senior secured net leverage ratio to fall below 1.0x following closing. Compass Diversified also expects to avoid fees tied to excess leverage beyond June 30. After the sale, the company will retain Sterno’s home fragrance segment, which will continue operating as Rimports, a Provo, Utah-based manufacturer and distributor of branded and private-label home fragrance products. The transaction is subject to customary conditions and regulatory approvals and is expected to close in May 2026.
Earlier in March, Raymond James re-initiated coverage of Compass Diversified (NYSE:CODI) with a Market Perform rating and no price target following a restatement tied to accounting unreliability at the Lugano subsidiary. The firm said there “remains much work to be done” as the company proceeds with divestitures and works to return to compliance with its credit agreements.
Compass Diversified (NYSE:CODI) is an investment holding company focused on investing in industrial and branded consumer businesses across multiple sectors.
7. Otter Tail Corporation (NASDAQ:OTTR)
On April 14, 2026, Otter Tail Corporation (NASDAQ:OTTR) announced a series of executive leadership changes as part of a long-term succession plan approved by its Board of Directors. Tim Rogelstad was named President of Otter Tail Corporation and will oversee the electric and manufacturing platforms while reporting to CEO Chuck MacFarlane. Rogelstad previously served as President of Otter Tail Power Company and as Senior Vice President, Electric Platform. At the same time, Todd Wahlund was appointed Senior Vice President of Otter Tail Corporation and President of Otter Tail Power Company, reporting to Rogelstad, after previously serving as Vice President and CFO. Tyler Nelson was named Vice President and CFO of Otter Tail Corporation, reporting to MacFarlane, after most recently serving as Vice President of Finance and Treasurer and previously as Vice President of Accounting.
On March 26, 2026, Freedom Capital analyst Matvey Tayts initiated coverage of Otter Tail Corporation (NASDAQ:OTTR) with a Hold rating and a $90 price target on the shares. Matvey Tayts said the regulated segment is expected to drive long-term growth, while the manufacturing divisions “provide cyclical upside and margin diversification.”
Otter Tail Corporation (NASDAQ:OTTR) operates electric utility, manufacturing, and plastic pipe businesses in the United States.
6. Brookfield Corporation (NYSE:BN)
On April 20, 2026, Morgan Stanley analyst Michael Cyprys raised the price target on Brookfield Corporation (NYSE:BN) to $61 from $60 and maintained an Overweight rating ahead of Q1 results. Michael Cyprys said the firm lowered EPS estimates by 9% on average but remains 1% above consensus on a median basis across its alternative asset manager coverage.
Earlier in April, Brookfield Corporation (NYSE:BN) joined Sumitomo Corporation, SMBC Aviation Capital, and Apollo-managed funds in completing the acquisition of Air Lease Corporation, with the business renamed Sumisho Air Lease Corporation. The transaction, first announced in September 2025, values Air Lease at approximately $7.4B, or about $28.2B including debt obligations net of cash. As part of the deal, Air Lease’s orderbook was transferred to SMBC Aviation Capital, increasing its Airbus and Boeing orderbook to around 420 aircraft. SMBC Aviation Capital will service the majority of the combined portfolio, bringing its owned, serviced, and committed fleet to over 1,700 aircraft across more than 170 airline customers. The companies said the transaction strengthens the business with long-term capital support and aviation expertise from its investors.
Last month, Scotiabank analyst Mario Saric lowered the price target on Brookfield Corporation (NYSE:BN) to $48.50 from $52 and maintained an Outperform rating. Mario Saric said concerns around software, AI, and private credit exposure have weighed on alternative asset managers, but noted Brookfield has relatively lower exposure in those areas and added that the recent share selloff “feels overdone.”
Brookfield Corporation (NYSE:BN) is a multi-asset manager investing across real estate, credit, renewable power, infrastructure, venture capital, and private equity.
While we acknowledge the potential of BN to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than BN and that has 100x upside potential, check out our report about the cheapest AI stock.
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