Billionaire David Tepper’s 5 Small and Midcap Stock Picks with Huge Upside Potential

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1. Whirlpool Corporation (NYSE:WHR)

Appaloosa Management LP’s Stake: $282 Million 

David Tepper of Appaloosa Management LP has had a long-term bullish view on Whirlpool Corporation (NYSE:WHR) stock. The firm first appeared in the 13F portfolio of the fund back in the third quarter of 2012. This position comprised just under 650,000 shares. By early 2014, this holding had grown to over a million shares. A trimming period followed and the position was sold off completely by the fourth quarter of 2017. A new position in the firm was opened by the fund in the second quarter of 2025. This comprised 266,000 shares. In the third quarter of 2025, the stake was grown to 5.5 million shares. Filings for the fourth quarter of 2025 show that the fund owned 3.9 million shares in the firm, down 28% compared to the previous quarter.

Whirlpool Corporation (NYSE:WHR) is a value play for hedge funds. The stock has recently traded at levels that institutional investors find mathematically compelling for a market leader. With a forward P/E often dipping into the single digits and a dividend yield that has reached over 7%, hedge funds view the stock as a coiled spring. A key 2026 catalyst identified by analysts is Whirlpool’s domestic manufacturing advantage. Approximately 80% of products Whirlpool sells in the US are manufactured in the US. As tariffs increase costs for Asian competitors who preloaded the market in 2025, hedge funds expect Whirlpool to regain pricing power and market share as that excess inventory clears in 2026.

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

READ NEXT: 12 Best Stocks to Buy According to Billionaire David Abrams and 15 Best Stocks to Buy According to Billionaire Seth Klarman.

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