Billionaire David Abrams’ Top 5 Stock Picks with Upside Potential

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1. Loar Holdings Inc (NYSE:LOAR)

Abrams Capital Management’s Investment Stake: $1.84 Billion

Number of Hedge Fund Holders: 25

Stock Upside Potential: 2.90%

Loar Holdings Inc (NYSE:LOAR) is one of billionaire David Abrams’ top stock picks with upside potential. The stock makes up nearly 40% of the billionaire’s portfolio. Some 25 hedge funds have positions in Loar Holdings. In the past month, Loar shares have gained more than 27% and still have upside potential.

On June 25, Citi raised its price target on Loar Holdings Inc (NYSE:LOAR) shares to $87 from $71 while keeping a Buy rating on the stock. Additionally, the brokerage has placed what it calls an “upside 90-day catalyst watch” on Loar ahead of the company’s Q2 2026 report.

Citi believes that improving commercial and defense aftermarket conditions will drive valuation upside in Loar shares. According to the firm, Loar remains the only aftermarket stock that is still trading at a large discount to its historical valuation range.

Loar had a strong start to 2026, with Q1 net sales soaring 36% YoY to $156.1 million and adjusted EPS rising 21.4% to $0.34. These solid results led the management to raise the full-year 2026 outlook.

The company now expects to report 2026 net sales in the range of $645 million to $655 million. It previously projected revenue in the range of $640 million to $650 million. It raised the adjusted EPS forecast to a range of $1.26 to $1.30, up from a range of $1.21 to $1.25.

Loar Holdings Inc (NYSE:LOAR) manufactures and supplies proprietary components for the aerospace and defense industries. The company has customers globally, and its portfolio includes sensors, braking systems, and cabin lighting.

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

READ NEXT: Seth Klarman Stock Portfolio: 10 Best Stocks to Top 10 Mid Cap Stocks to Own for Decades According to Hedge Funds.

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