In this article, we will take a look at Billionaire David Einhorn’s 10 Stock Picks with Huge Upside Potential.
David Einhorn is a widely renowned hedge fund manager who co-founded Greenlight Capital in 1996. The billionaire graduated from Cornell University and gained experience in the hedge fund industry under the tutelage of Gary Siegler and Peter Collery at the SC Fundamental Value Fund. Einhorn rose to prominence in 2002, when he successfully questioned the accounting practices of Allied Capital, a private equity firm, and disclosed having a short position at the Sohn Investment Conference. The stock plummeted, sparking a heated exchange of claims between Allied and Einhorn. A five-year-long inquiry by the United States Securities and Exchange Commission (SEC) confirmed Einhorn’s claim, revealing that Allied did breach accounting rules related to securities laws.
Greenlight Capital focuses on value-oriented initiatives. The investment management firm’s primary concentration lies in long and short positions in listed equity securities. This strategy allows Einhorn to navigate both rising and falling markets, giving him flexibility during periods of uncertainty.
Greenlight Capital gained 8.2% in the first three months of 2025, boosted by a gold bet that it believes will pay out further as Trump administration policies continue to shake the economy. In a letter to clients, the firm stated that the precious metal was “by far the biggest winner” in their portfolio, increasing 19%. Gold is frequently used as an inflation hedge, and Greenlight believes the White House’s policies would only worsen inflation. “All current Administration policy roads lead to higher longer-term inflation.” the letter added. Greenlight reasoned that slower growth would push the US Federal Reserve to drop interest rates more than markets anticipate. As a countermeasure, the fund acquired a stake in SOFR futures (secured overnight financing rate), while also including tail protection in case the dollar falls significantly compared to the euro and yen.
Another aspect of the Greenlight letter was the assertion that the US equities market is in the early stages of a bear market. To that end, the firm was able to determine precisely when to opt out of its equity holdings. According to the firm’s letter:
“Bear markets do not go straight down. They are punctuated with ‘rip-your-face-off’ rallies based on big headlines, extreme investor sentiment, and experience that buying the dip usually pays off.”
David Einhorn of Greenlight Capital
Our Methodology
For this article, we examined Greenlight Capital’s Q4 2024 13F filings to list down billionaire David Einhorn’s stock picks with the highest upside potential. We ranked the companies in ascending order of their upside potential. These equities are also popular among elite hedge funds.
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).
10. HP Inc. (NYSE:HPQ)
Greenlight Capital’s Q4 Stake: $130.1 million
Analyst Upside as of April 30: 32.16%
Number of Hedge Fund Holders: 48
HP Inc. (NYSE:HPQ) offers personal computing, printing, 3D printing, hybrid work, gaming systems, and other technologies. HP’s product portfolio includes high-performance laptops such as the Spectre and Envy, commercial and consumer printers, and industrial 3D printing systems.
HP Inc. (NYSE:HPQ) announced a 3.3% year-over-year revenue rise in constant currency for the first quarter of 2025, led by a 5% increase in the Personal Systems sector owing to strong commercial demand and the adoption of AI-powered PCs. However, the company’s Print revenue fell 1%, indicating strong consumer hardware performance but weaker commercial demand, especially in China.
HP Inc. (NYSE:HPQ) is actively pursuing its Future Ready transformation strategy, which has resulted in an increase in its cumulative gross run-rate savings target to $1.9 billion, up from $1.6 billion previously. The adoption of AI PCs is accelerating, evidenced by a 25% sequential growth rate in the January quarter. HP Inc. (NYSE:HPQ) estimates that AI PC shipments will account for about 25% of total PC sales by the end of fiscal year 2025, with an expected penetration rate of 40-50% by fiscal year 2027.
9. Kyndryl Holdings, Inc. (NYSE:KD)
Greenlight Capital’s Q4 Stake: $130.1 million
Analyst Upside as of April 30: 34.80%
Number of Hedge Fund Holders: 41
Kyndryl Holdings, Inc. (NYSE:KD) is a prominent provider of IT infrastructure services, focusing on the design, development, administration, and modernization of complex enterprise IT systems. Previously a part of IBM (NYSE:IBM), the company was spun off in 2021.
On March 28, Oppenheimer analysts maintained Kyndryl Holdings, Inc. (NYSE:KD)’s Outperform rating with a price target of $43. The update came after a report was issued, suggesting financial misconduct within the company. In response to the charges, Kyndryl’s management team issued a statement calling the report’s assertions false and intentionally misleading. Oppenheimer’s study supported the management’s position, finding no strong evidence, or “smoking gun,” to back up the report’s accusations.
Kyndryl Holdings, Inc. (NYSE:KD) has also signed a strategic partnership with Google Cloud to become a specialized partner for AI and Gemini models, with the goal of modernizing mainframe applications. Furthermore, the company launched a $300 million share repurchase program, reflecting its belief in its future growth prospects.
Rewey Asset Management, an investment management company, released its Q4 2024 investor letter. Here is what the fund said:
“Kyndryl Holdings, Inc. (NYSE:KD), which we highlighted in our 3Q24 letter, was our top performer in 4Q24, up 50.2%. KD held a well-received analyst day November 21st, where they reaffirmed 2025 financial guidance and set aggressive goals for 2028 margin improvement and Free Cash Flow growth. Investors also cheered the announcement of a $300 million share buyback. We see strong long-term upside in the shares and think KD could be an attractive acquisition target for a consulting or technology services company.”
8. Teck Resources Limited (NYSE:TECK)
Greenlight Capital’s Q4 Stake: $44 million
Analyst Upside as of April 30: 40.57%
Number of Hedge Fund Holders: 66
Teck Resources Limited (NYSE:TCK) is a prominent mining and mineral development company that extracts and explores a wide range of minerals, including copper, coal, zinc, and oil. With activities in Canada, Chile, Peru, and the United States, the company operates across five business segments: steelmaking, coal, copper, zinc, energy, and corporate.
Following the company’s first-quarter results announcement, Benchmark maintained its Buy rating and $55 price target for Teck Resources Limited (NYSE:TECK). Teck Resources surpassed expectations, reporting adjusted EBITDA of C$927 million, exceeding the C$808 million market concensus and Benchmark’s own C$867 million projection. This success was related to strong performance in the zinc industry. Furthermore, Teck remains optimistic about its future prospects, anticipating copper output of 490,000 to 565,000 tonnes and zinc production of 525,000 to 575,000 tonnes this year. The company is also continuing its $3.25 billion buyback program, with more than half of it already completed, and is looking into near-term copper projects with possible investments of $3.2 to $3.9 billion.
7. PENN Entertainment, Inc. (NASDAQ:PENN)
Greenlight Capital’s Q4 Stake: $113.9 million
Analyst Upside as of April 30: 40.99%
Number of Hedge Fund Holders: 51
Penn Entertainment, Inc. (NASDAQ:PENN) offers integrated entertainment, sports content, and casino gaming experiences. The company consists of five segments: Northeast, South, West, Midwest, and Interactive. Its portfolio includes casinos, racetracks, and online sports betting in a number of locations.
On April 3, Raymond James reiterated its Market Perform rating for PENN Entertainment, Inc (NASDAQ:PENN). RJ Milligan, the firm’s analyst, revised the model and forecasts for the company after taking into account fourth-quarter performance and 2025 guidance. In his statement, Milligan stated that, while he feels PENN Entertainment’s shares are currently undervalued, the firm prefers to remain cautious. This position stems from the company’s continued journey toward digital profitability, which Milligan referred to as the “anchor around the stock.”
In the fourth quarter of 2024, the company’s Interactive division generated revenues of $142 million. The Interactive division is primarily focused on its ESPN BET online sports betting platform. PENN Entertainment, Inc (NASDAQ:PENN) expects to break even this year, with each successive quarter generating a decreasing loss, culminating in the first profitable quarter in Q4 2025 since the introduction of ESPN BET.
6. Peloton Interactive, Inc. (NASDAQ:PTON)
Greenlight Capital’s Q4 Stake: $91.5 million
Analyst Upside as of April 30: 42.57%
Number of Hedge Fund Holders: 49
Peloton Interactive, Inc. (NASDAQ:PTON) is a multinational fitness technology company that provides internet-connected workout equipment, including treadmills and rowers, for streaming live and on-demand fitness classes via a subscription service. The company also offers a digital app allowing paid access to a variety of training classes.
Truist Securities raised Peloton Interactive, Inc. (NASDAQ:PTON) to Buy from Hold on April 28, citing improved fundamentals, a cleaner balance sheet, and a more straightforward path to long-term profitability under new leadership. Three years after downgrading the stock, Truist said Peloton’s efforts to cut operational costs and stabilize cash flow are starting to pay off. Truist emphasized Peloton’s goal of returning to revenue growth in fiscal 2026, estimating a 1.9% year-over-year improvement following a projected 9% decrease in fiscal 2025.
Peloton Interactive, Inc. (NASDAQ:PTON) reported solid financial results in the second quarter of 2025, with adjusted EBITDA reaching $58 million, representing a $140 million year-over-year increase. The company raked in a double-digit Connected Fitness Products gross margin of 12.9%, owing to a favorable premium product mix and strict discount alignment.
Greenlight Capital stated the following regarding Peloton Interactive, Inc. (NASDAQ:PTON) in its Q4 2024 investor letter:
“We had some good successes, as well. Peloton Interactive, Inc. (NASDAQ:PTON) and Tenet Healthcare (THC), discussed below, were also large winners during 2024.
We presented our PTON thesis at the Robin Hood Investors Conference in October and previously sent you copies of the presentation. Yes, David rode for 20 minutes while presenting the thesis.5 PTON was a popular stock during the COVID era as demand for at-home fitness products and services skyrocketed. During this time, the company invested heavily for growth without any regard for profitability or expense management. After multiple missteps and subsequent management changes, the stock fell 98% from its peak price in early 2021. Throughout this time, PTON has maintained a loyal and engaged customer base through its subscription-based business model.
Recently, the company has committed itself to dramatically cutting costs. Should PTON be successful in right-sizing its cost structure, we expect significant EBITDA generation, and when applying a peer multiple to those profits, we believe the stock has significant upside. We established our position at an average price of $4.07 per share. PTON ended the year at $8.70.”
5. Capri Holdings Limited (NYSE:CPRI)
Greenlight Capital’s Q4 Stake: $44.3 million
Analyst Upside as of April 30: 43.07%
Number of Hedge Fund Holders: 47
Capri Holdings Limited (NYSE:CPRI) is a multinational fashion holding company that operates globally recognized luxury brands like Jimmy Choo, Versace, Michael Kors, and others. The company has over 1,200 directly controlled luxury retail outlets, as well as a vast wholesale network to serve consumers in places where it lacks its own stores.
On April 11, Bernstein SocGen Group maintained a Market Perform rating and a $20 price target for Capri Holdings Limited (NYSE:CPRI). The firm acknowledged Capri Holdings’ announcement of a conclusive agreement to sell the Versace brand to Prada for $1.375 billion, with the transaction set to finish in the second half of 2025. This valuation is around 1.7 times Versace’s expected fiscal year 2026 sales of $813 million.
The company’s revenue declined 11.6% in the third fiscal quarter of 2025, with drops in all of its brands, including Versace, Michael Kors, and Jimmy Choo. That said, Capri Holdings Limited (NYSE:CPRI) intends to shutter a handful of Michael Kors outlets while focusing on increasing operating margins through various efficiency efforts.
4. Core Natural Resources, Inc. (NYSE:CNR)
Greenlight Capital’s Q4 Stake: $148.78 million
Analyst Upside as of April 30: 44.17%
Number of Hedge Fund Holders:
Core Natural Resources, Inc. (NYSE:CNR) is a leading producer and exporter of high-quality, low-cost coals, including metallurgical and high calorific value thermal coals. The Pennsylvania Mining Complex, Leer, Leer South, and West Elk mines are among the company’s top-performing assets. With an emphasis on seaborne markets, Core plays a vital role in addressing the world’s expanding demand for steel, infrastructure, and energy. The company was formed in January 2025 following the merger of long-standing industry titans CONSOL Energy and Arch Resources
Despite the fact that adjusted EBITDA for legacy assets fell short of estimates in the fourth quarter, Benchmark analysts retained a Buy rating on Core Natural Resources, Inc. (NYSE:CNR) with a $112 price target. Meanwhile, Jefferies launched coverage of Core Natural Resources with a Hold rating and a $93 price target, highlighting the company’s distinct asset portfolio and diverse coal exposure. The analysts emphasized the potential for fewer cyclical cash flows compared to other coal miners.
Black Bear Value Fund stated the following regarding Core Natural Resources, Inc. (NYSE:CNR) in its Q1 2025 investor letter:
“Core Natural Resources, Inc. (NYSE:CNR) is the result of the merger between Consol and Arch Resources. As a combined entity they are one of the leading producers of metallurgical coal (steel) and thermal coal (energy). The Company is heavily dependent on exports so retaliatory tariffs would be damaging. At the same time, there has been a reduction in global capacity so many countries may not have much choice, especially if they need higher quality coal.
Met coal demand is projected to climb for the next 25 years, driven by the economic development and urbanization in India and the rest of Southeast Asia. ~60% of the world’s population lives in Asia, where met coal demand is centered and where local sources are limited. Over the coming years demand will likely outstrip supply, leading to higher prices. There has been a severe lack of investment in met coal due to ESG concerns with investment peaking in 2014.
I will disclose my updated valuation thoughts at a later date as I find the investment extremely compelling and am hoping the Company can buy back ever cheaper stock. As a reminder this is a Company with a fortress balance sheet and is one of the cheapest producers in the market. While short-term pain hurts all Companies, they can be major long-term beneficiaries.”
3. Weatherford International plc (NASDAQ:WFRD)
Greenlight Capital’s Q4 Stake: $32.7 million
Analyst Upside as of April 30: 105.28%
Number of Hedge Fund Holders: 36
Weatherford International plc (NASDAQ:WFRD) offers services and equipment to the natural gas and oil exploration and production industries. The company operates in three segments: Drilling and Evaluation (DRE), Well Construction and Completion (WCC), and Production and Intervention (PRI).
On April 24, Raymond James analyst James Rollyson decreased Weatherford International plc (NASDAQ:WFRD)’s stock rating from Strong Buy to Outperform. In line with the rating change, the price target dropped from $73 to $69. The downgrade comes as Weatherford faces ongoing issues due to its notable exposure in Mexico, where activity from Pemex, the state-owned petroleum company, diminished more than expected. Rollyson stated that the company’s near-term results have been impacted by the downturn, although he expects a leveling out in the future. He also mentioned that the company is now in a far better position compared to previous market downturns.
Weatherford International plc (NASDAQ:WFRD) reported first-quarter 2025 earnings of $1.03 per share, exceeding analysts’ forecasts of $0.92. The company’s revenue came in at $1.19 billion, which met expectations. Despite troubling market conditions, Weatherford’s performance proved resilient, with adjusted EBITDA margins reaching 21.2%. The company also recorded an adjusted free cash flow of $66 million and a free cash flow conversion rate of 26.1%, up from 24.4% the previous year.
2. Seadrill Limited. (NYSE:SDRL)
Greenlight Capital’s Q4 Stake: $32.7 million
Analyst Upside as of April 30: 160.52%
Number of Hedge Fund Holders: 42
Seadrill Limited. (NYSE:SDRL) delivers offshore drilling services to the oil and gas industries globally. The company owns and operates drill ships and semi-submersible rigs that operate in shallow and ultra-deepwater in benign and hazardous environments.
In the fourth quarter alone, Seadrill Limited. (NYSE:SDRL) repurchased $100 million in shares, reducing its issued share count by 22% since the program debuted in September 2023. To date, $792 million has been returned to shareholders. The company has also received about 65% of the global backlog granted to the four largest publicly traded offshore drillers, despite accounting for only 18% of the drillship fleet.
Seadrill Limited. (NYSE:SDRL) received two substantial long-term contracts in Brazil back in December 2024, set to begin in 2026. These added $1 billion to the company’s backlog and included a mobilization cost that surpassed $70 million.
Patient Capital Opportunity Equity Strategy stated the following regarding Seadrill Limited (NYSE:SDRL) in its Q1 2025 investor letter:
“Seadrill Limited (NYSE:SDRL) is the fourth largest pure play deepwater drilling specialist. The company emerged from bankruptcy in February 2022 with a net cash position and is positioned to benefit from limited supply and increasing demand in the deepwater drilling rig market. Nearly half of all deepwater drilling rigs worldwide were scrapped during the last decade, while industry consolidation has created a more rational competitive landscape than we’ve seen historically. Although oil demand has remained reasonably healthy, surprisingly strong onshore production from the USA, Canada and Russia has helped keep a lid on prices. While this has negatively impacted contract rates near-term, we believe that long-term future shale supply growth will be limited, and more offshore supply will be required benefitting offshore drillers. Given its highly specialized rig fleet and minimal debt, we believe the company is well positioned to benefit from improving prices when demand rebounds. We believe Seadrill could either lead industry consolidation or become an acquisition target.”
1. Roivant Sciences Ltd. (NASDAQ:ROIV)
Greenlight Capital’s Q4 Stake: $62.3 million
Analyst Upside as of April 30: 291.59%
Number of Hedge Fund Holders: 44
Roivant Sciences Ltd. (NASDAQ:ROIV) is a commercial-stage biopharmaceutical company that is dedicated to developing and commercializing treatments for inflammation and immunology.
On April 22, H.C. Wainwright reaffirmed Roivant Sciences Ltd. (NASDAQ:ROIV)’s Buy rating and $18 price target. The company’s management structure recently experienced substantial changes, coinciding with Roivant’s decision to include Sjögren’s disease (SJD) and cutaneous lupus erythematosus (CLE) as the fifth and sixth indications for its investigative medication, IMVT-1402.
Roivant Sciences Ltd. (NASDAQ:ROIV) published earnings for the third quarter of 2024 on February 10, which came above analysts’ expectations. The company’s net income was $118.1 million, compared to $5.1 billion in the same period last year. The drop was primarily due to the absence of a gain on the sale of Telavant net assets, which contributed considerably to the previous year’s revenue. Revenue for the quarter was $9.0 million, a decrease from $15.6 million in the prior year. Operating expenses also rose to $283.4 million from $236.5 million, owing to increasing R&D and general and administrative costs.
Tourlite Capital Management, an investment management firm, released a Q4 2024 investor letter. Here is what the fund said:
“We continue to believe Roivant Sciences Ltd. (NASDAQ:ROIV) offers an attractive risk reward and multiple ways to win. Excluding Roivant’s cash balance and Immunovant (IMVT) stake, the remainder of Roivant (ROIV stub) is valued at less than $2 per share. We believe Roivant’s stake in Arbutus and its exposure to the LNP litigation could alone be worth up to $4. In addition to ROIV, we remain shareholders in Arbutus.”
While we acknowledge the potential for ROIV as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than ROIV but trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
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