In this article, we will list the Billionaire David Abrams’ Top 5 Stock Picks with Upside Potential. Please visit Billionaire David Abrams’ Top 9 Stock Picks with Upside Potential if you would like to see the extended list and the methodology behind it.
5. Coupang Inc (NYSE:CPNG)
Abrams Capital Management’s Investment Stake: $245.8 Million
Number of Hedge Fund Holders: 86
Stock Upside Potential: 29.31%
Coupang Inc (NYSE:CPNG) is one of billionaire David Abrams’ top stock picks with upside potential. Coupang shares have gone up more than 26% over the past month, and analysts project a nearly 30% upside from the current level. This Asian e-commerce stock is loved by elite investors as it is held by some 86 hedge funds.
In a note to investors on June 15, the equity research firm CLSA recommended buying Coupang Inc (NYSE:CPNG) stock, pointing to the company’s competitive strength and expanding market. CLSA initiated coverage of CPNG stock with an Outperform rating and $24 price target.
According to the brokerage, Coupang has built a strong retail platform and a nationwide logistics network that strengthens its leading position in the Korean e-commerce market. The brokerage expects the Korean e-commerce market to grow at a compound annual rate of 6% between 2025 and 2029. Additionally, CLSA expects Coupang to begin reaping from its AI investments and benefit from market consolidation.
Coupang Inc (NYSE:CPNG) is an Asian-focused e-commerce and logistics company in the mold of Amazon. It operates an online retail platform, provides food delivery, and offers video streaming services. Coupang also has an Amazon Prime-like membership program.
4. Asbury Automotive Group Inc (NYSE:ABG)
Abrams Capital Management’s Investment Stake: $421.2 Million
Number of Hedge Fund Holders: 35
Stock Upside Potential: 10.03%
Asbury Automotive Group Inc (NYSE:ABG) is one of billionaire David Abrams’ top stock picks with upside potential. The stock makes up more than 9% of the billionaire’s portfolio. Asbury Automotive is a favorite of elite investors, with 35 hedge funds having stakes in the stock.
On June 22, Asbury Automotive Group Inc (NYSE:ABG) published its 2025 corporate responsibility report. In that report, the company outlined its major achievements and initiatives from the past year. These included efforts to support local communities, reduce environmental impact, and invest in team members.
Speaking of investing in teams, Asbury relocated its corporate team to a new headquarters in Atlanta, Georgia. It said this change enhances team experience and strengthens collaboration, which in turn supports the company’s goals.
One of these goals is achieving $30 billion in revenue by 2030. Asbury said it moved closer to this goal after generating more than $17 billion in revenue in 2025. This was achieved through continued investment in existing dealerships and acquisitions. The company presently operates 158 new vehicle dealerships and 202 franchises.
Asbury Automotive Group Inc (NYSE:ABG) operates auto dealerships and service centers across the US. It sells new and used cars across diverse brands and provides a broad array of repair and maintenance services. Additionally, the company offers financing and insurance products.
3. Somnigroup International Inc (NYSE:SGI)
Abrams Capital Management’s Investment Stake: $428.6 Million
Number of Hedge Fund Holders: 63
Stock Upside Potential: 25.59%
Somnigroup International Inc (NYSE:SGI) is one of billionaire David Abrams’ top stock picks with upside potential. Somnigroup shares are up around 16% over the past month, and the Street sees the shares soaring at least 25% from the current level over the next 12 months. Some 63 hedge funds have confidence in Somnigroup stock.
According to some Wall Street experts, Somnigroup International Inc (NYSE:SGI) stands to benefit from the bankruptcy of its competitor, Sleep Number Corporation. On June 12, Sleep Number filed for bankruptcy as its debt ballooned and losses mounted. The company blamed inflation, tariffs, and supply chain disruptions for its woes.
In Q1 2026, Sleep Number posted a net loss of $50 million on net sales of $319 million. Canadian bedding company Sleep Country Canada has offered to buy Sleep Number assets for $415 million.
Analysts at Piper Sandler saw the Sleep Number bankruptcy coming and said Somnigroup would benefit from it. In their June 4 note to investors, the analysts commented that the bankruptcy of the competitor would allow Somnigroup to gain market share in the premium mattress space. Additionally, the analysts speculated that Somnigroup could attempt to purchase stores and intellectual property assets in the rival’s bankruptcy process.
Somnigroup International Inc (NYSE:SGI) is a multinational bedding and sleep tech company. It makes and sells mattresses. Somnigroup manufactures mattresses under various product brands and operates a chain of retail stores to sell these products.
2. Alphabet Inc (NASDAQ:GOOGL)
Abrams Capital Management’s Investment Stake: $536.5 Million
Number of Hedge Fund Holders: 265
Stock Upside Potential: 18.95%
Alphabet Inc (NASDAQ:GOOGL) is one of billionaire David Abrams’ top stock picks with upside potential. Alphabet shares have more than doubled in the past year, and analysts see the stock rising more from the current level. Alphabet is a big favorite of elite investors, as the stock is backed by 265 hedge funds.
On July 2, the EU’s top court upheld the $4.7 billion antitrust fine against Alphabet Inc (NASDAQ:GOOGL). The fine is linked to how Google handled Android licensing after regulators accused the company of abusing its market power. Alphabet had fought hard to overturn the fine but lost the battle.
While Alphabet has lost the fight against the EU’s Android fine, the company’s prospects remain bright. On June 30, Morgan Stanley raised its price target on Alphabet shares to $415 from $375 and kept an Overweight rating on the stock. The brokerage commented that Alphabet is one of the best-positioned AI companies around, noting the company’s expanding AI compute capacity and surging demand for AI resources.
Alphabet Inc (NASDAQ:GOOGL) is a global technology conglomerate. It is the parent of Google, a leading provider of internet search, online advertising, and cloud computing services. Alphabet is involved in life sciences through Verily and provides robotaxi services through Waymo.
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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