Richard Chilton is a veteran investor and the founder of Chilton Investment Company, a long-standing and respected name in the world of hedge funds. Known for his disciplined, research-driven investment philosophy, Chilton has built a reputation over the decades for being a thoughtful, value-oriented manager who combines patience with a deep understanding of market fundamentals.
He launched Chilton Investment Company in 1992 after gaining experience at major firms like Allen & Company and Alliance Capital. From the beginning, his approach stood out. Instead of chasing fast money or following trends, Chilton focused on long-term opportunities grounded in detailed analysis and risk management. His fund, which started with just $5 million, grew significantly over the years as investors recognized the strength of his strategy and the consistency of his returns.
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Chilton’s style is often described as “fundamental, bottom-up investing”. Essentially, he and his team dig into company financials, industry dynamics, and management quality before making any investment decisions. This focus on quality and sustainability has helped the firm navigate multiple market cycles with relatively steady hands. Chilton is known to favor businesses with strong competitive advantages and predictable cash flows — companies that can weather downturns and continue compounding returns over time.
Chilton Investment Company has navigated the complexities of the post-pandemic market landscape with a focus on disciplined investment strategies, delivering solid returns for its clients. Today, Chilton Investment Company remains a respected player in the asset management world, guided by the same principles Richard Chilton laid out over 30 years ago: deep research, long-term thinking, and a strong sense of fiduciary duty. With that context in mind, let’s take a look at Richard Chilton’s 10 stock picks with huge upside potential according to analysts.
Richard Chilton of Chilton Investment Company
Our Methodology
For this list, we picked stocks from Chilton Investment Company’s 13F portfolio as of the end of the fourth quarter of 2024. We listed them in the ascending order of analysts’ average upside potential, as of May 2. These equities are also popular among other hedge funds.
At Insider Monkey we are obsessed with 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).
Billionaire Richard Chilton’s 10 Stock Picks with Huge Upside Potential
10. Mettler-Toledo International Inc. (NYSE:MTD)
Chilton Investment Company’s stake: $20,871,086
Upside Potential: 15%
Number of Hedge Fund Holders: 50
Mettler-Toledo International Inc. (NYSE:MTD) is a global leader in precision instruments and services, holding top market positions across its five business segments. It serves diverse industries such as life sciences, food, and chemicals, with a strong focus on innovation, particularly in laboratory instruments, software, and automated chemistry. Its flagship LabX platform and specialized products like balances, pipettes, and titrators drive significant revenue. The company operates in over 140 countries and has consistently delivered strong financial performance through strategic execution.
On April 14, Bank of America analyst Michael Ryskin reduced his price target on Mettler-Toledo International Inc. (NYSE:MTD) from $1,500 to $1,250 while maintaining a Neutral stance on the stock. In a note to investors ahead of earnings, Ryskin highlighted that the outlook for Life Sciences, Diagnostic Tools, and Contract Research Organizations is “particularly negative,” as these sectors are “at the intersection of a number of policy changes from the Trump Administration.” He pointed to challenges such as potential NIH funding reductions, global trade tariffs, and wider macroeconomic issues—particularly related to China—as key factors weighing on sentiment.
9. Broadcom Inc. (NASDAQ:AVGO)
Chilton Investment Company’s stake: $9,681,175
Upside Potential: 19.57%
Number of Hedge Fund Holders: 161
Broadcom Inc. (NASDAQ:AVGO) is a global leader in semiconductor and infrastructure software solutions, with a 60-year legacy rooted in companies like AT&T/Bell Labs, HP, and VMware. It designs and supplies thousands of semiconductor products for applications in AI, networking, telecom, and industrial systems, focusing on high-performance, mixed-signal, and analog devices. Its infrastructure software simplifies IT for major enterprises. Broadcom’s 2023 acquisition of VMware strengthened its cloud and data center offerings. The company emphasizes innovation, strategic acquisitions, and global engineering to drive growth.
Broadcom’s AI-related revenue jumped a whopping 220% to $12.2 billion, representing 41% of semiconductor sales, fueled by demand for custom AI accelerators (XPUs) and networking solutions from hyperscale customers. However, the company’s non-AI semiconductor business declined 23% in FY 2024 to $17.8 billion due to cyclical weakness, especially in enterprise and broadband. However, signs of recovery are emerging in server storage and broadband, with current year growth expected at mid-single-digit rates, according to analysts.
On April 30, 2025, Seaport Global began coverage of Broadcom Inc. (NASDAQ:AVGO) with a Buy rating and a price target of $230. The firm highlighted Broadcom’s strong exposure to the ongoing surge in AI investments, noting that the market has not yet fully recognized this upside in the stock’s valuation. The analyst also emphasized Broadcom’s leadership in the semiconductor space and its strategic expansion across various areas of the tech industry.
8. Canadian Pacific Kansis City Limited (NYSE:CP)
Chilton Investment Company’s stake: $39,856,909
Upside Potential: 20%
Number of Hedge Fund Holders: 74
Canadian Pacific Kansas City Limited (NYSE:CP) operates the only freight railway network connecting Canada, the U.S., and Mexico, covering approximately 20,000 miles. It transports bulk goods, merchandise, and intermodal freight across major business hubs. The company is headquartered in Calgary, with a U.S. office in Kansas City. On April 14, 2023, Canadian Pacific Railway Limited (NYSE:CP) assumed control of Kansas City Southern.
Canadian Pacific Kansas City Limited (NYSE: CP) reported its Q1 2025 earnings, highlighting a 3% decline in profit compared to the previous year. The company posted a diluted earnings per share of $0.83, slightly below the consensus estimate of $0.94. Revenues for the quarter were approximately $3.5 billion. Despite the profit dip, the company experienced a 1% increase in volumes, measured in Revenue Ton-Miles, indicating stable demand. The operating ratio worsened quarter-on-quarter by 400 basis points to 67.4%, due to higher costs. Looking ahead, Canadian Pacific remains focused on leveraging its integrated North American network to drive growth and operational efficiency.
7. Five Below, Inc. (NASDAQ:FIVE)
Chilton Investment Company’s stake: $16,442,509
Upside Potential: 24.74%
Number of Hedge Fund Holders: 48
Five Below, Inc. (NASDAQ:FIVE) is a fast-growing value retailer targeting tweens, teens, and broader age groups with trend-driven, high-quality products mostly priced at $5 or less. Offering items across eight categories—from Style to Tech—the brand emphasizes fun, affordability, and a dynamic in-store experience. Since opening its first store in 2002, Five Below has expanded to 1,340 locations in 42 states, with plans for 200 new stores in 2023 and long-term growth potential to over 3,500. The company also sells online through its website and same-day delivery services.
Five Below, Inc. (NASDAQ:FIVE) is sharpening its focus on delivering trend-right products at compelling value, emphasizing core price points of $1–$5 and enhancing its higher-priced offerings. The company is leveraging speed to capitalize on trends, simplifying pricing, and improving store operations to enhance the customer experience. Despite mitigation efforts, tariffs are expected to create a ~100-basis-point margin headwind in 2025, according to the company. Marketing investments and new product development aim to reinforce brand value, while long-term margin recovery is expected through shrink improvement, sourcing expansion, and operational efficiency, according to the company.
6. Alphabet Inc. (NASDAQ:GOOGL)
Chilton Investment Company’s stake: $34,441,242
Upside Potential: 25.24%
Number of Hedge Fund Holders: 234
Alphabet Inc. (NASDAQ:GOOGL) the parent company of Google, organizes its operations into Google Services, Google Cloud, and Other Bets, with AI research centralized at the Alphabet level. Its mission remains to make information universally accessible and useful, now expanded to helping people get things done. With over $150 billion invested in R&D over five years, Alphabet enhances user experiences through products like Search, YouTube, and Google Cloud. Its Gemini AI model, now in version 2.0, powers major services and advances scientific breakthroughs like AlphaFold.
Alphabet Inc. (NASDAQ:GOOGL) delivered a strong quarter when it reported earnings for FQ1 2025, led by major AI advancements, with total revenue growing 12% year-over year. The launch of Gemini 2.5, its most advanced model, significantly boosted performance across Google products, now integrated into all 15 platforms with over 500 million users. AI tools like Gemini Pro, Flash, and open-source Gemma models (downloaded over 140 million times) drove developer growth, with AI Studio usage up 200%.
Google Cloud expanded 28% year-over-year to $12.3 billion in Q1 ’25 with new AI infrastructure and tools for enterprises, including the Agent Development Kit and Vertex AI. YouTube marked its 20th anniversary, with 1 billion monthly podcast users and 125 million Music and Premium subscribers. Waymo’s paid rides grew 5x year-over-year. Alphabet Inc. (NASDAQ:GOOGL) also announced plans to acquire cloud security platform Wiz, strengthening its multi-cloud cybersecurity offerings.
5. CDW Corporation (NASDAQ:CDW)
Chilton Investment Company’s stake: $31,223,646
Upside Potential: 30.17%
Number of Hedge Fund Holders: 46
CDW Corporation (NASDAQ:CDW) is a leading provider of multi-brand IT solutions to business, government, education, and healthcare customers in the U.S., U.K., and Canada. Offering hardware, software, and integrated services—including cloud, hybrid infrastructure, and security—CDW remains vendor-neutral and partners with top OEMs and cloud providers. With about 10,900 customer-facing professionals, CDW simplifies IT complexities across design, procurement, and management. It operates in 150 countries and is positioned for growth as demand for technologies like cloud computing and AI continues to rise in its core, fragmented markets.
CDW’s service and service offerings played a key role in offsetting hardware weakness in 2024, with services revenue up 10% and double-digit profit growth. Managed Services grew over 20%, reflecting rising customer demand for cloud, AI, and security solutions. The company continues to expand its capabilities with investments like the acquisition of Mission Cloud Services, enhancing its AWS-based managed offerings. CDW’s deep technical expertise, especially in sectors like healthcare, has enabled development of tailored solutions such as AI-powered patient room systems and cloud migration strategies. By delivering integrated hardware, software, and services, CDW Corporation (NASDAQ:CDW) helps customers optimize operations and improve outcomes, reinforcing its trusted advisor status while maintaining strategic focus in high-growth areas like cloud, software, and professional services.
4. Vistra Corp (NYSE:VST)
Chilton Investment Company’s stake: $21,449,539
Upside Potential: 31.78%
Number of Hedge Fund Holders: 120
Vistra Corp (NYSE:VST) is a leading U.S. retail electricity and power generation company, serving about 5 million customers across 18 states and D.C. Its integrated model combines retail and power generation, allowing it to deliver electricity efficiently and cost-effectively. Vistra operates around 41,000 megawatts of generation capacity using natural gas, nuclear, coal, solar, and battery storage. Its main brands include TXU Energy, Ambit, and Dynegy. Vistra Corp (NYSE:VST) focuses on customer experience, offering innovative products like 100% renewable options, smart thermostats, and energy-saving tools to enhance convenience, choice, and control for consumers.
On April 29, Jefferies analyst Julien Dumoulin-Smith lowered Vistra’s price target from $151 to $145 but maintained a Buy rating, consistent with the Strong Buy analyst consensus. The adjustment reflects conservative mark-to-market (MtM) commodity expectations, yet the firm still sees value in Vistra Corp (NYSE:VST), revising its 2027 EBITDA forecast to $7.15 billion from the current $6.77 billion. The absence of an anticipated data center deal has contributed to a recent stock decline, which Dumoulin-Smith sees as a potential buying opportunity. He emphasized Vistra’s strong free cash flow and hedging strategies as key supports. Even without data center contributions, the stock offers an attractive risk/reward profile, especially at $117, aided by a low PEG ratio of 0.19, suggesting strong value relative to growth.
3. Thermo Fisher Scientific Inc. (NYSE:TMO)
Chilton Investment Company’s stake: $25,002,774
Upside Potential: 31.95%
Number of Hedge Fund Holders: 100
Thermo Fisher Scientific Inc. (NSE:TMO) is a global leader in serving science, offering innovative technologies and services to customers in pharmaceuticals, biotech, healthcare, research, and industrial sectors. It operates through four segments: Life Sciences Solutions, Analytical Instruments, Specialty Diagnostics, and Laboratory Products & Biopharma Services. The Life Sciences Solutions segment supports drug research and production, while Analytical Instruments provides tools for scientific analysis. The Specialty Diagnostics segment focuses on diagnostic products for healthcare and industrial labs, and the Laboratory Products & Biopharma Services segment offers lab essentials and pharmaceutical services. Thermo Fisher’s goal is to enhance productivity and innovation through a comprehensive portfolio of products and services.
Thermo Fisher Scientific Inc. (NYSE:TMO) reported strong Q1 2025 results, with revenue of $10.36 billion and adjusted EPS of $5.15, exceeding expectations. Despite challenges in the macro environment, the company delivered solid growth, with key areas such as bioproduction and pharma services leading the way. Innovation played a significant role, with new product launches including the Thermo Scientific Vulcan automated lab and the Transcend chromatography platform. The company also continued to strengthen its commercial engine, exemplified by its growing leadership in clinical research. Thermo Fisher announced the acquisition of SOVENTUM’s purification and filtration business for $4.1 billion, expanding its bioproduction capabilities. In terms of capital return, $1 billion in shares were repurchased, and the dividend was increased by 10%. For the full year, Thermo Fisher updated its guidance, projecting revenue between $43.3 billion and $44.2 billion and adjusted EPS between $21.76 and $22.84.
2. UnitedHealth Group Incorporated (NYSE:UNH)
Chilton Investment Company’s stake: $27,703,929
Upside Potential: 34.04%
Number of Hedge Fund Holders: 150
UnitedHealth Group Incorporated (NYSE:UNH) is a healthcare company focused on improving access, affordability, outcomes, and experiences for individuals and organizations. It operates through two main businesses: Optum and UnitedHealthcare. Optum integrates clinical expertise, technology, and data to improve healthcare delivery and affordability, serving various markets including patients, employers, and governments. UnitedHealthcare offers a range of health benefits, simplifying the healthcare experience for individuals and employers, including specific services for Medicare recipients and economically disadvantaged populations. The company has four reportable segments: Optum Health, Optum Insight, Optum Rx, and UnitedHealthcare.
UnitedHealth Group Incorporated (NYSE:UNH) began 2025 with strong business growth but faced significant challenges, prompting a reduction in its earnings outlook to $26–$26.50 per share. The main issues arose in its Medicare businesses, particularly due to higher-than-expected care activity and changing member profiles. Increased utilization in physician and outpatient services within Medicare Advantage was not mirrored in commercial or Medicaid sectors. Additionally, new members in Optum Health had lower-than-expected engagement and reimbursement. UnitedHealth is addressing these challenges through improved member engagement, investment in clinical workflows, and adapting to CMS risk model changes.
Despite setbacks, the company is growing in Medicare Advantage and Medicaid, and Optum Rx is seeing strong sales and customer retention. Technological advancements, including AI tools and simplified drug access, are enhancing operations. While results were disappointing, the company remains confident in its long-term strategy, emphasizing innovation, cost control, and a better healthcare experience for consumers and providers.
1. Warby Parker Inc. (NYSE:WRBY)
Chilton Investment Company’s stake: $7,351,753
Upside Potential: 40.17%
Number of Hedge Fund Holders: 34
Warby Parker Inc. (NYSE:WRBY) is a socially driven eyewear brand combining design, tech, and healthcare to offer affordable, high-quality eye care. With over 3,500 employees, it aims to provide vision for all, offering stylish glasses starting at $95. By designing in-house and selling directly to customers online, via app, or in 276 stores, it cut costs and simplifies pricing. Its services include contacts, eye exams, and telehealth tools.
On April 17, Loop Capital Markets upgraded Warby Parker Inc. (NYSE:WRBY) from Hold to Buy with a $27 price target, citing its 41% year-to-date decline as excessive compared to the S&P 500’s 9% drop. Analysts believe this creates a compelling investment opportunity, supported by the brand’s mix of style, quality, and affordability. Warby Parker Inc. (NYSE:WRBY) is well-positioned due to the essential nature of vision care and opportunities in the fragmented U.S. optical market, making it resilient even in uncertain economic conditions.
While we acknowledge the growth potential of WRBY, our conviction lies in the belief that AI stocks hold great promise for delivering high 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 WRBY but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
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