We recently published a list of Billionaire Nelson Peltz’s 8 Stock Picks with Highest Upside Potential. In this article, we are going to take a look at where GE Aerospace (NYSE:GE) stands against other billionaire Nelson Peltz’s stock picks with highest upside potential.

Nelson Peltz is one of the renowned figures in the financial world mainly due to his role as a billionaire who has served as a board member of some large corporations and also due to being the co-founder of Trian Fund Management. As per Forbes, his current net worth is $1.6 billion whereas Trian Fund Management has around $8.5 billion as assets under management.

Nelson Peltz was born in 1942 and entered the business world through his family’s wholesale food distribution company A. Peltz & Sons. He started his journey as a delivery truck driver and later transformed the company with his brother Peter May. Peltz shifted the gears of his family business by transitioning its focus to international frozen foods and launched a new brand called Flagstaff Corp, which later went public and was sold for $150 million in 1972.

Later, Peltz turned his modest income to build a multi-million fortune by a series of bold moves, starting with leveraged buyouts financed with junk bonds. For reference, junk bonds are bonds with a higher risk of default as compared to other bonds issued by corporations and governments. However, because of this higher risk investors are compensated with lucrative interest rates, therefore junk bonds are also high-yield bonds.

Notably, Peltz acquired Triangle Industries in 1983 and later sold it for $4 billion 5 years later. He also acquired Snapple, turned its business to profitability, and sold it 3 years later at a significant upside. These numerous acquisitions of underperforming and undervalued businesses, being sold at profitability, demonstrate his ability to fix businesses. Nelson Peltz has a famous quote that says:

“I spent most of my career operating businesses and fixing businesses, not staring at a Bloomberg screen.”

The form of investment that billionaire Peltz follows is known as Activist Investment, which essentially means an investor or a group of investors buys a stake in a public company to influence the operations of the company. Mostly, activist investors do this by taking a seat on the board of directors. Peltz defines an activist investor in a quote that says:

“The activists play the balance sheet by selling a division to buy back stock and leveraging the balance sheet and buying back more stock.”

Currently, Peltz is the co-founder of Trian Fund and also serves on the boards of some major public corporations. As of March 2024, Trian Fund Management oversees discretionary assets totaling $6,202,444,791 for 25 clients.

Our Methodology

To compile the list of billionaire Nelson Peltz’s 8 stock picks with the highest upside potential, we sifted through 13F filings of Trian Partners, from Insider Monkey. From these filings, we checked each stock’s upside potential from CNN and ranked the stocks in ascending order of the upside potential. We have also added the Trian Partners stake in each company and the hedge fund sentiment around each stock. Please note that the data was recorded on April 21, 2025.

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).

GE Aerospace (NYSE:GE)

Trian Partners’ Stake: $672,199,226

Number of Hedge Fund Holders: 101

Analyst Upside Potential: 23.76%

GE Aerospace (NYSE:GE) is an international leader in aerospace services and systems. It operates through two main business segments including Commercial Engines & Services and Defense & Propulsion Technologies. The company has around 45,000 commercial and 25,000 military aircraft in operation worldwide.

On April 16, J.P. Morgan analyst Seth Seifman maintained a Buy rating on the stock. The analyst noted that GE Aerospace (NYSE:GE) met market expectations in Q1 despite the challenging environment characterized by the tariffs and lower expected departures. The Commercial Services and Equipment sales of the company performed well to offset the challenges. During the fiscal first quarter of 2025, GE Aerospace (NYSE:GE) achieved a 12% growth in total orders resulting in revenue growing by 11% to reach $9.9 billion.

Looking forward, the company plans to invest nearly $1 billion in US manufacturing and technology to enhance production and improve capabilities. Despite the ongoing macroeconomic challenges, the future of the company remains bright with a strong contract line including commitments with ANA Holdings, Malaysia Aviation Group, Korean Air, and a US Air Force contract valued at $5 billion for F110-GE-129 engines. It is one of the billionaire Nelson Peltz’s stock picks with the highest upside potential.

Aristotle Atlantic Core Equity Strategy stated the following regarding GE Aerospace (NYSE:GE) in its Q4 2024 investor letter:

“GE Aerospace (NYSE:GE) designs and produces commercial and defense aircraft engines, integrated engine components, electric power, and mechanical aircraft systems. The industry has high entry barriers and is concentrated among few players. Despite its cyclical nature, the demand for travel is driven by global middle-class growth. Boeing and Airbus have long order books, ensuring steady demand for engines and spare parts. The company also benefits from high-margin services for existing aircraft fleets, with services accounting for 70% of its commercial engine business. GE Aerospace serves customers worldwide.

We see GE Aerospace making significant strides in its commercial engine business, which is expected to boost future services revenue growth. Over the past five years, the company has undergone substantial restructuring and simplification, including divesting its healthcare and energy businesses. The company now operates in three segments: Commercial Engines & Services (CES), Defense & Propulsion Technologies (DPT) and Insurance. Long-term revenue guidance is for high single-digit growth, and management has a goal of $10 billion in annual operating profit by 2028, with an expected 20% annual earnings growth. Following years of restructuring, we see GE Aerospace now positioned to return capital to shareholders through dividends and share repurchases.”

Overall, GE ranks 4th on our list of billionaire Nelson Peltz’s stock picks with highest upside potential. While we acknowledge the potential of GE to grow, our conviction lies in the belief that 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 GE but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. This article is originally published at Insider Monkey.