We recently published a list of 10 Best New Stocks to Buy According to Billionaires. In this article, we are going to take a look at where Solventum Corporation (NYSE:SOLV) stands against other best new stocks to buy according to billionaires.
Overview of Q1 2025 IPO Activity
International IPO activity during the first quarter of 2025 was characterized by profound uncertainty coming from geo-political shifts and the ever-changing tariff policies around the globe. According to an April 10, 2025 report by EY Global, the global IPO market remained steady year-over-year in terms of volume but grew 20% in terms of value. The first quarter of 2025 witnessed a total of 291 IPOs with a total value of $29.3 billion. Notably, the United States was a key player as it posted the third-strongest Q1 performance with a total of 59 listings. On the other hand, the Asia-Pacific market also showed signs of recovery and the EMEA region remained steady year-over-year.
The current global macroeconomic environment has created both challenges and opportunities for the IPOs around the world. For instance, the tariff policies and the ongoing trade war have raised the expectations of inflation, casting uncertainty over the monetary policies. On the other hand, the geo-political tensions have led to increased budgetary spending around the world, thereby leading to a surge in investment in the Aerospace and Defence sector. The report by EY Global anticipates a surge in IPO activity for this segment. Moreover, the disruptive trends in artificial intelligence are allowing IPO candidates to enhance their market strategies and offerings using the technology. As per the report, AI technology has started to become an integral part of companies operating in the financial, health, and life sciences industries.
While the United States market witnessed a 51% increase in the number of IPOs when compared to 2024, however, the future looks uncertain. George Chan, EY Global IPO Leader highlighted that the growth in IPO activity during the first quarter was on the back of an optimistic market outlook at the start of the year. However, currently, many companies who had planned their IPOs in the first or second quarter of the year have delayed their public offering to later quarters or 2026. Chan advised that it is important for investors to look for companies with unshakeable fundamentals, agility, and adaptability to steer with the uncertainty of the market.
Our Methodology
To curate the list of 10 best new stocks to buy according to billionaires we used the Finviz stock screener and Insider Monkey’s Q4 2024 billionaire database. Using the screener we aggregated a list of companies that went public in the past 2 years. After sorting the list by market capitalization, we ranked each new stock in ascending order of the number of billionaire investors. We have also added the hedge fund sentiment around each stock. Please note that the data was recorded on April 25, 2025. Also, note that in cases where two or more stocks had an equal number of billionaire investors we used market capitalization as a tie-breaker.
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 healthcare provider holding an MRI scan of a patient with a traumatic brain injury.
Solventum Corporation (NYSE:SOLV)
Market Capitalization: $11.683 billion
Number of Hedge Fund Holders: 41
Number of Billionaires: 12
Total Value of Billionaire Holdings: $784,436,827
Solventum Corporation (NYSE:SOLV) is an international healthcare company that develops and sells a range of products and solutions for the medical sector. The company operates through four main business segments including Medical Surgical, Dental Solutions, Health Information Systems, and Purification and Filtration. The company was spun off from 3M in 2024 and now trades as an independent company.
Solventum Corporation (NYSE:SOLV) is in the process of becoming completely independent from its spin-off. Since March, the company has exited roughly one-quarter of over 200 transition service agreements. It has also implemented new ERP systems, which are Enterprise Resource Planning systems, in six countries. Management noted that some large ERP implementations are remaining which it plans to complete in the current and next year.
Amidst this transition period, Solventum Corporation (NYSE:SOLV) still posted growth. During the fiscal fourth quarter of 2024, the company grew its sales by 2.3% to $2.1 billion. This growth was driven by a strong performance in the MedSurg segment which contributed $1.2 billion in sales. Looking ahead, management anticipates to keep growing its sales by 1% to 2%. It is one of the best new stocks to buy according to billionaires.
Diamond Hill Mid Cap Strategy stated the following regarding Solventum Corporation (NYSE:SOLV) in its Q4 2024 investor letter:
“As valuations have continued rising and the economic cycle has gotten relatively long in the tooth, we’ve thought carefully about where and how we are exposed to more cyclical stocks. As such, we initiated a number of new positions in Q4, including ICON, Informatica, Teledyne Technologies, LPL Financial Holdings, Teleflex Incorporated and Solventum Corporation (NYSE:SOLV).
Solventum, formerly 3M’s health care business, was spun out to shareholders in 2024. It provides a portfolio of solutions to address critical patient needs. The company has been challenged by years of underinvestment and market-share losses. However, the new management team is focused on driving revenue growth in line with peers’ — which we think is likelier as a standalone company. We also expect Solventum to optimize research and development to improve its sales mix and include new products.”
Overall, SOLV ranks 4th on our list of best new stocks to buy according to billionaires. While we acknowledge the potential of SOLV 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 SOLV 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.