Billionaire Dan Loeb’s 10 Stocks with Huge Upside Potential

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1. Kenvue Inc. (NYSE:KVUE)

Upside Potential: 42.89%

Number of Hedge Fund Holders: 72

Third Point Management holds $178,428,250 worth of Kenvue Inc. (NYSE:KVUE) shares, representing 2.34% of its portfolio.

On October 3, 2025, Moody’s Ratings downgraded Kenvue Inc. (NYSE:KVUE)’s outlook from “Stable” to “Negative.”

Moody’s downgrade reflects Kenvue Inc. (NYSE:KVUE)’s ongoing operational headwinds and litigation risks that negatively impacted its earnings and cash flow. At the same time, Moody’s affirmed the company’s A1 long-term issuer and Prime-1 commercial paper ratings. However, the company’s weaker sales trends and cash outflows from restructuring were noted, which could result in negative free cash flow this year.

Meanwhile, Kenvue Inc. (NYSE:KVUE)’s leverage remains on the higher end at 2.8x debt-to-EBITDA, above its 2x target. On the other hand, share repurchases are expected to stay on hold until deleveraging improves. Additionally, legal uncertainty remains as acetaminophen-related lawsuits shift to the U.S. Court of Appeals, with a ruling expected by early 2026.

On the positive side, Moody’s noted Kenvue Inc. (NYSE:KVUE)’s diversified portfolio, stable liquidity, and ongoing strategic review aimed at restoring profitability.

Kenvue Inc. (NYSE:KVUE) is a global consumer health company across the U.S., operating through Self Care, Skin Health & Beauty, and Essential Health segments. It is included in Dan Loeb’s stock portfolio.

While we acknowledge the potential of KVUE 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 KVUE and that has 100x upside potential, check out our report about this cheapest AI stock.

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