Billionaire Dan Loeb’s 10 Stocks with Huge Upside Potential

In this piece, we will discuss Billionaire Dan Loeb’s 10 Stocks with Huge Upside Potential.

Daniel Loeb, a billionaire investor, founded Third Point Management, which remains one of Wall Street’s most influential activist hedge funds. The investment firm boasts a concentrated portfolio, which is built around deep fundamental research, opportunistic activism, and event-driven investing. The firm manages 51 positions worth more than $7.6 billion as of mid-2025. Meanwhile, the fund’s flagship vehicle, Third Point Offshore, is executing disciplined stock selection and targeted exposure to resilient U.S. sectors, and advanced 7.5% in Q2 2025.

Dan Loeb highlighted in his Q2 2025 investor letter that he expects consumer, technology, and industrial stocks to outperform as corporate earnings and sentiment recover. The billionaire’s strategy is in line with the broader market sentiment, which is marked by strong investor confidence.

Both the S&P 500 and Nasdaq reached their all-time highs on October 7, 2025, with AI-related deal-making and renewed optimism over Federal Reserve policy driving the surge. Furthermore, the market is currently pricing in a 94.6% probability of a 25-basis-point rate cut at the Fed’s upcoming October meeting, according to LSEG data. Supporting growth-oriented equities, these macroeconomic factors favor selective equity investors like Loeb, whose strategy inclines toward companies with durable cash flows and high operating leverage.

With this backdrop, we will move to our list of Billionaire Dan Loeb’s 10 Stocks with Huge Upside Potential.

Billionaire Dan Loeb's 10 Stocks with Huge Upside Potential

Dan Loeb of Third Point

Our Methodology

To curate our list of Billionaire Dan Loeb’s 10 Stocks with Huge Upside Potential, we analyzed Third Point’s 13F filings for Q2 2025, using Insider Monkey’s 13F filings database. We extracted all of the fund’s holdings and identified stocks with the highest estimated upside potential. We then ranked them based on their respective upside potential as of the time of writing. The list is presented below in ascending order of upside potential.

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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

Billionaire Dan Loeb’s 10 Stocks with Huge Upside Potential

10. Vistra Corp. (NYSE:VST)

Upside Potential: 11.16%

Number of Hedge Fund Holders: 111

Third Point Management holds $242,262,500 worth of Vistra Corp. (NYSE:VST) shares, representing 3.18% of its portfolio.

On October 3, 2025, BMO Capital increased its price target on Vistra Corp. (NYSE:VST) from $229 to $236, maintaining an “Outperform” rating.

This price revision follows investor meetings as well as Vistra Corp. (NYSE:VST)’s recent project announcements. A day prior to the target revision, the Federal Energy Regulatory Commission approved the company’s acquisition of seven natural gas generation facilities from Lotus Infrastructure Partners. With this acquisition, Vistra expects to add 2,600 megawatts of capacity across multiple U.S. markets.

Furthermore, the investment firm cited the company’s reaffirmation that strong pricing premiums will be commanded by carbon-free resources. Meanwhile, 2025-2026 EBITDA forecasts are maintained, and longer-term estimates are revised upward through 2030.

Vistra Corp. (NYSE:VST) is an integrated retail electricity and power generation company in the U.S. It is included in Dan Loeb’s stock portfolio.

9. Capital One Financial Corporation (NYSE:COF)

Upside Potential: 14.07%

Number of Hedge Fund Holders: 132

Third Point Management holds $383,862,443 worth of Capital One Financial Corporation (NYSE:COF) shares, representing 5.04% of its portfolio.

On September 24, 2025, a coalition of 18 U.S. states reached out to a federal judge, urging the judge to reject Capital One Financial Corporation (NYSE:COF)’s proposed $425 million settlement with depositors.

The coalition, calling the settlement inadequate and unfair, argued that the agreement, which was meant to resolve claims over frozen rates on “360 Savings” accounts, would mean over $2.5 billion in savings for the bank, while customers would be provided with only about $54 of the $717 each in lost interest.

Furthermore, they emphasized that Capital One Financial Corporation (NYSE:COF) would be allowed to continue its practices without significant changes, while depositors would be earning substantially lower interest rates than new account holders. Meanwhile, the company maintains its stance that the deal was reasonable, given litigation risks.

To resolve the matter, a final hearing is scheduled to take place on November 6, 2025, in Virginia federal court.

Operating across the U.S., Canada, and the United Kingdom, Capital One Financial Corporation (NYSE:COF) offers a wide range of financial products and services. It is included in Dan Loeb’s stock portfolio.

8. Workday Inc. (NASDAQ:WDAY)

Upside Potential: 19.87%

Number of Hedge Fund Holders: 76

Third Point Management holds $72,000,000 worth of Workday, Inc. (NASDAQ:WDAY) shares, representing 0.94% of its portfolio.

Workday Inc. (NASDAQ:WDAY) finalized its acquisition of Paradox on October 1, 2025. Paradox is a conversational AI hiring platform designed to streamline recruitment processes, especially for frontline industries.

With this acquisition, Workday Inc. (NASDAQ:WDAY) aims to expand its AI capabilities to create a unified, end-to-end talent acquisition suite. As a result, it will integrate automation into hiring, scheduling, and candidate engagement.

Meanwhile, a week earlier, BMO Capital reaffirmed its “Outperform” rating on Workday Inc. (NASDAQ:WDAY). The investment firm’s bullish stance stems from its confidence in the company’s long-term growth prospects. In particular, its acquisition of Paradox is expected to simplify hiring at scale and enhance recruiter efficiency, strengthening its positioning within the AI-driven human capital management market.

Workday Inc. (NASDAQ:WDAY) operates across the U.S. and international markets, providing enterprise cloud applications for finance, HR, and analytics. It is included in Dan Loeb’s stock portfolio.

7. Intercontinental Exchange Inc. (NYSE:ICE)

Upside Potential: 24.02%

Number of Hedge Fund Holders: 84

Third Point Management holds $174,296,500 worth of Intercontinental Exchange Inc. (NYSE:ICE) shares, representing 2.29% of its portfolio.

On October 7, 2025, Intercontinental Exchange Inc. (NYSE:ICE) revealed its plans to invest up to $2 billion in the leading prediction market platform, Polymarket. With this investment by the global exchange and data services company, the platform is valued at roughly $8 billion pre-investment.

With this deal, Intercontinental Exchange Inc. (NYSE:ICE) will become a global distributor of Polymarket’s event-driven data and will enable institutional clients to assess real-time sentiment on market-moving events. Moreover, the two companies plan to collaborate on tokenization projects, reinforcing ICE’s strategy to integrate decentralized finance into traditional markets.

With over 10% revenue growth in the past year and a 1.21% dividend yield, Intercontinental Exchange Inc. (NYSE:ICE) looks well-positioned to capitalize on the deal, pushing itself toward data innovation and next-generation financial technology. Meanwhile, the company’s 2025 financial results are not expected to be affected by the investment, which will be made in cash.

Intercontinental Exchange Inc. (NYSE:ICE), a global exchange and data services company, delivers market infrastructure, analytics, and technology solutions. It is included in Dan Loeb’s stock portfolio.

6. PG&E Corporation (NYSE:PCG)

Upside Potential: 26.12%

Number of Hedge Fund Holders: 77

Third Point Management holds $712,334,000 worth of PG&E Corporation (NYSE:PCG) shares, representing 9.35% of its portfolio.

On October 3, 2025, Jefferies reduced its price target on PG&E Corporation (NYSE:PCG) from $22 to $20, maintaining a “Buy” rating.

The investment firm attributed its bullish stance on PG&E Corporation (NYSE:PCG) to the company’s solid risk-reward profile, alongside declining wildfire risk and a 9% EPS CAGR premium through 2030. Jefferies believes PG&E’s earnings guidance is conservative, also highlighting the absence of equity financing needs and potential share buybacks. At the same time, the company’s shares are trading at a 50% forward price-to-earnings discount versus peers.

Meanwhile, PG&E Corporation (NYSE:PCG) announced on October 3, 2025, that it has completed 1,000 miles of underground power lines in high fire-risk areas, which is the largest such initiative by a U.S. utility. The initiative has reduced systemwide wildfire ignition risk by 8.4% since 2023, while total undergrounding is expected to reach 1,600 miles by 2026. With this, the company further enhanced reliability and cost efficiency across Northern and Central California.

PG&E Corporation (NYSE:PCG), a regulated electric and natural gas utility, offers energy services to residential, commercial, and industrial customers in Northern and Central California. It is included in Dan Loeb’s stock portfolio.

5. Apollo Global Management Inc. (NYSE:APO)

Upside Potential: 30.53%

Number of Hedge Fund Holders: 86

Third Point Management holds $180,884,250 worth of Apollo Global Management (NYSE:APO) shares, representing 2.37% of its portfolio.

Apollo Global Management Inc. (NYSE:APO) announced on October 6, 2025, that its managed funds have agreed to acquire one of the largest independent hydroelectric power platforms in the U.S., Eagle Creek Renewable Energy, which operates 85 facilities across 18 states with a combined capacity of nearly 700 MW, enough to supply power to over 260,000 homes.

With this acquisition, Apollo Global Management Inc. (NYSE:APO) reinforces its focus on scaling energy transition assets amid increasing power demand from data centers and industrial infrastructure. Since 2022, the company has spent roughly $59 billion on energy transition investments.

Meanwhile, on October 3, 2025, analysts from BMO Capital began coverage of Apollo Global Management Inc. (NYSE:APO) with a “Market Perform” rating and a $132 price target. The analysts’ stance reflects the strong private credit capabilities through Athene. However, they warned that elevated earnings expectations may experience pressure as rate cuts approach.

Apollo Global Management Inc. (NYSE:APO), a global alternative asset manager, delivers investment, credit, and retirement solutions across institutional and retail markets globally. It is included in Dan Loeb’s stock portfolio.

4. LPL Financial Holdings Inc. (NASDAQ:LPLA)

Upside Potential: 31.65%

Number of Hedge Fund Holders: 61

Third Point Management holds $234,356,250 worth of LPL Financial Holdings Inc. (NASDAQ:LPLA) shares, representing 3.08% of its portfolio.

On October 3, 2025, analysts at BMO Capital initiated coverage on LPL Financial Holdings Inc. (NASDAQ:LPLA) with an “Outperform” rating and a $365 price target.

The analysts’ bullish stance stems from LPL Financial Holdings Inc.’s (NASDAQ:LPLA) continued expansion and strategic positioning within the U.S. wealth management industry. Furthermore, the analysts highlighted the company’s expanded partnership with Prudential Financial, under which an Insurance Overlay lifetime income strategy for its managed accounts platform will be launched. This platform aims to help advisors integrate protected income solutions into client portfolios. It targets a growing retiree population—over 11,000 Americans turning 65 daily—and around $34 trillion in under-protected retirement asset base.

LPL Financial Holdings Inc. (NASDAQ:LPLA), an independent broker-dealer and investment advisory firm in the U.S., offers technology, brokerage, and advisory services to financial professionals and institutions. It is included in Dan Loeb’s stock portfolio.

 3. Flutter Entertainment plc (NYSE:FLUT)

Upside Potential: 36.56%

Number of Hedge Fund Holders: 87

Third Point Management holds $305,763,200 worth of Flutter Entertainment plc (NYSE:FLUT) shares, representing 4.01% of its portfolio.

On October 6, 2025, an analyst at Citizens reaffirmed his “Market Outperform” rating on Flutter Entertainment plc (NYSE:FLUT), setting a $340 price target.

The analyst’s bullish stance reflects the company’s continued momentum in its U.S. sportsbook operations, having posted 15.6% revenue growth over the past twelve months. General consensus among analysts remains a “Strong Buy” for Flutter Entertainment plc (NYSE:FLUT), as its FanDuel platform continues to capture share in the expanding U.S. sports betting market. The analyst, after comparing NFL Week 5 odds across FanDuel, DraftKings, and Kalshi, concluded that Kalshi’s pricing remained less competitive after accounting for transaction fees. This reinforced FanDuel’s pricing efficiency and consumer advantage, the Citizens analyst noted.

Flutter Entertainment plc (NYSE:FLUT), a global online sports betting and gaming company, operates FanDuel, PokerStars, Paddy Power, and Betfair brands across the U.S., Europe, and Australia. It is included in Dan Loeb’s stock portfolio.

2. SharkNinja Inc. (NYSE:SN)

Upside Potential: 38.54%

Number of Hedge Fund Holders: 65

Third Point Management holds $118,788,000 worth of SharkNinja Inc. (NYSE:SN) shares, representing 1.56% of its portfolio.

On October 6, 2025, SharkNinja Inc. (NYSE:SN) announced its collaboration with Kevin Hart, a comedian and actor, appointing him as the new global brand ambassador. With this, Kevin Hart joins David Beckham in a multi-year marketing campaign.

The partnership will set off with a digital series titled “Neighbors,” which is to be produced by Hart’s entertainment firm Hartbeat. The series will feature SharkNinja Inc. (NYSE:SN)’s products in everyday use.

Furthermore, SharkNinja Inc. (NYSE:SN) launched its TurboBlade Cool + Heat, a $399.99 dual-function fan and heater combining cool and thermal technology. With this, the company aims to expand its smart appliance lineup.

With these marketing and product initiatives, SharkNinja Inc. (NYSE:SN) looks to enhance brand visibility and capture demand for multifunctional home solutions across global markets.

SharkNinja Inc. (NYSE:SN), a product design and technology company, delivers household and lifestyle solutions in the U.S., China, and the rest of the world. It is included in Dan Loeb’s stock portfolio.

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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