Billionaire Chris Hohn’s 8 Stock Picks with Huge Upside Potential

6. GE Aerospace (NYSE:GE)

Number of Hedge Fund Holders as of Q4: 101

TCI Fund Management’s Equity Stake: $7.67 Billion

Upside Potential as of May 6: 9.88%

Headquartered in Evendale, Ohio, GE Aerospace (NYSE:GE) is a cornerstone of the global aviation industry, providing advanced propulsion systems and aftermarket services for commercial and military aircraft. The company has emerged as a dominant aircraft engine manufacturer due to its historical leadership, strategic partnerships, and technological investments.

For the first quarter of 2025, GE Aerospace (NYSE:GE) posted robust performance across key metrics. Total orders rose 12% year over year to $12.3 billion, while GAAP revenue increased 11% to $9.9 billion. Adjusted revenue also saw an 11% lift, reaching $9.0 billion. The company delivered GAAP profit of $2.2 billion, up 13%, while adjusted operating profit surged 38% to $2.1 billion. Margins expanded significantly, with adjusted operating margin improving by 460 basis points to 23.8%.

Earnings per share reflected this momentum. Adjusted EPS came in at $1.49, representing a sharp 60% increase from the prior year, while GAAP EPS was $1.83, up 16%. Although free cash flow declined 14% to $1.4 billion, the company maintained healthy cash generation amid rising orders and stronger commercial services performance.

Despite macroeconomic headwinds, particularly trade-related uncertainty due to renewed tariffs, GE Aerospace (NYSE:GE) has reaffirmed its full-year earnings guidance. CEO H. Lawrence Culp, Jr. has actively engaged with U.S. leadership to advocate for a return to tariff-free trade under the Civil Aircraft Agreement, citing its role in sustaining a $75 billion annual trade surplus for the industry.

With a price target of $229.58 and an upside potential of 9.88%, GE Aerospace (NYSE:GE) is among billionaire Chris Hohn’s stock picks with huge upside potential. Backed by strong execution, expanding margins, and a high-growth end market, GE stands out as a top conviction holding for hedge fund portfolios focused on long-term capital gains.

Aristotle Atlantic Core Equity Strategy stated the following regarding GE Aerospace (NYSE:GE) in its Q4 2024 investor letter:

“GE Aerospace (NYSE:GE) designs and produces commercial and defense aircraft engines, integrated engine components, electric power, and mechanical aircraft systems. The industry has high entry barriers and is concentrated among few players. Despite its cyclical nature, the demand for travel is driven by global middle-class growth. Boeing and Airbus have long order books, ensuring steady demand for engines and spare parts. The company also benefits from high-margin services for existing aircraft fleets, with services accounting for 70% of its commercial engine business. GE Aerospace serves customers worldwide.

We see GE Aerospace making significant strides in its commercial engine business, which is expected to boost future services revenue growth. Over the past five years, the company has undergone substantial restructuring and simplification, including divesting its healthcare and energy businesses. The company now operates in three segments: Commercial Engines & Services (CES), Defense & Propulsion Technologies (DPT) and Insurance. Long-term revenue guidance is for high single-digit growth, and management has a goal of $10 billion in annual operating profit by 2028, with an expected 20% annual earnings growth. Following years of restructuring, we see GE Aerospace now positioned to return capital to shareholders through dividends and share repurchases.”