We recently published a list of the 11 Best Young Stocks to Buy According to Hedge Funds. In this article, we are going to take a look at where GE HealthCare Technologies Inc. (NASDAQ:GEHC) stands against other best young stocks.
NASDAQ CEO and chair Adena Friedman appeared on CNBC’s ‘Squawk Box’ on April 24 to discuss what to make of the market volatility, as well as the IPO landscape. Friedman reported that NASDAQ achieved 12.5% overall revenue growth in the quarter, with every division posting double-digit increases. Specifically, the index business grew by 26%, which was supported by $27 billion of inflows during the quarter. Half of these inflows were directed into NASDAQ 100 index products, while the other half went into various other indexes offered by NASDAQ. Friedman also acknowledged that the economy entered the year with resilience but faced increasing uncertainty and volatility as the quarter progressed. However, she explained that such environments often drive clients to turn to NASDAQ as the market operator of choice to manage their trading volumes and capital flows. She noted that even amid market value fluctuations, NASDAQ saw inflows into its index products and strong demand for its fintech services.
The discussion also indicated that while short-term market volatility can boost trading activity and liquidity, longer-term IPO prospects depend on broader economic conditions. Friedman said that IPO activity and investor behavior could change more significantly if the economy were to enter an extended recession. But for now, NASDAQ benefits from a strong start to the year and remains a preferred venue for investors to express their views. The conversation then turned to global capital flows, particularly as Chinese sovereign wealth funds may reduce investments in US venture capital and private equity firms. Friedman stated that the capital flows where returns are the strongest. She emphasized that asset owners and managers have ‘fiduciary’ responsibilities to their ultimate beneficiaries and will prioritize returns over the long term. Acknowledging the influence of geopolitical and political factors on investment decisions, Friedman stressed that NASDAQ’s role is to provide the infrastructure that allows capital to flow efficiently regardless of shifts.
Our Methodology
We first used the Finviz stock screener to compile a list of young stocks that went public in the last 3 years. We then selected the 11 stocks that were the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q4 2024.
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).
A radiologist in a lab examining a computed tomography scan of a patient.
GE HealthCare Technologies Inc. (NASDAQ:GEHC)
Number of Hedge Fund Holders: 64
GE HealthCare Technologies Inc. (NASDAQ:GEHC) develops, manufactures, and markets products, services, and complementary digital solutions. These are used in the diagnosis, treatment, and monitoring of patients in the US, Canada, and internationally. It has four segments: Imaging, Advanced Visualization Solutions/AVS, Patient Care Solutions/PCS, and Pharmaceutical Diagnostics/PDx.
The Pharmaceutical Diagnostics segment generated 8% year-over-year organic revenue growth in Q1 2025 due to the introduction of new products. This growth was also driven by a focus on radiopharmaceuticals. In Q1 2025, GE Healthcare achieved the first commercial doses of Flyrcado, which is its novel PET myocardial perfusion imaging agent designed to detect coronary artery disease. This tracer has also received CMS pass-through pricing, paving the way for a successful rollout.
The company also strengthened its position by acquiring the remaining 50% stake in Nihon Medi-Physics/NMP in Q1. NMP is a radiopharmaceutical company in Japan that is expected to contribute ~$150 million of inorganic revenue over the remaining three quarters of 2025. Patrick Wood from Morgan Stanley maintained a Hold rating on GE Healthcare with a price target of $78 on May 7.
Oakmark Fund stated the following regarding GE HealthCare Technologies Inc. (NASDAQ:GEHC) in its Q4 2024 investor letter:
“GE HealthCare Technologies Inc. (NASDAQ:GEHC) is a leading global medical technology company that was spun off from General Electric in January 2023. As a standalone company, we expect GE HealthCare to benefit from increased focus, better aligned management and incentives, and an improved corporate culture. We believe these changes will help drive higher margins and organic growth. In addition, we think GE HealthCare is well-positioned to capitalize on technology trends as a greater portion of the value proposition comes from AI-enabled software and a shift toward precision care. A lack of appreciation for the company’s self-help potential coupled with short-term concerns around weak demand in China provided us with the opportunity to purchase shares at a low valuation relative to other high-quality medical technology companies and at the lowest price relative to the S&P 500 since the IPO.”
Overall, GEHC ranks 5th on our list of the best young stocks to buy according to hedge funds. While we acknowledge the growth potential of GEHC, 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 GEHC 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.
