Billionaire Paul Singer’s 10 Stock Picks with Huge Upside Potential

8. Sensata Technologies Holding (NYSE:ST)

Elliott Management’s Stake: $89.05 million

Number of Hedge Fund Holders: 40

Average Upside Potential as of May 8: 29.09%

Sensata Technologies Holding (NYSE:ST) develops, manufactures, and sells sensors and sensor-rich solutions, electrical protection components & systems, and other products. These are used in mission-critical systems and applications. It operates through two segments: Performance Sensing and Sensing Solutions. It serves automotive, on-road truck & construction, and OEMs.

The company’s Performance Sensing segment, which focuses on automotive and heavy vehicles, is its revenue engine. In 2024, the company’s Performance Sensing segment generated $2.74 billion and held steady despite market contraction. This segment has a focus on automotive and heavy vehicles. The growth in this segment comes from Sensata winning new business in traditional internal combustion engine/ICE vehicles. These vehicles are powered by burning fossil fuels as opposed to EVs.

Earlier this year, TD Cowen analyst Joseph C Giordano maintained a Buy rating on the stock while keeping the $45 price target due to the Performance Segment. Management noted that the company is focusing on three main pillars: returning to growth through innovation & strategic customer partnerships, operational excellence to deliver high-quality products, and free cash flow generation.