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Yahoo
02-05-2025
- Business
- Yahoo
Montrose Environmental Group (MEG): Among Billionaire Ken Fisher's Industrial Stock Picks with Huge Upside Potential
We recently published a list of . In this article, we are going to take a look at where Montrose Environmental Group, Inc. (NYSE:MEG) stands against other billionaire Ken Fisher's industrial stock picks with huge upside potential. The economy strongly influences industrial stocks, which have fallen during recent downturns. However, 2025 looks like a key year for this sector, with these companies working in manufacturing, shipping, and aerospace, and investors are now focusing on businesses that adapt quickly to global shifts. The industrial sector grew 26% in 2024, showing strength despite high inflation and weak global demand. Going into 2025, these stocks are getting more attention thanks to new growth drivers and better economic conditions. Even with possible higher tariffs under Trump's trade policies, the outlook remains positive. President Trump has proposed a 25% tariff on steel and aluminum from countries like South Korea, Vietnam, and Canada. These tariffs might raise costs and also boost U.S. infrastructure and manufacturing spending; as Canada's Innovation Minister Francois-Philippe Champagne said, 'Canadian steel and aluminum support key industries in the U.S., from defense, shipbuilding, and auto. We will continue to stand up for Canada, our workers, and our industries.' All in all, this trade shift could help American industrial companies, especially those bringing supply chains back home. Moreover, lower interest rates should help the sector by increasing construction and housing projects in 2025. On the other hand, falling mortgage rates will attract more homebuyers, creating demand for building materials and equipment. Ken Fisher said, 'Investors are ignoring some of these positive developments,' pointing to an overlooked chance in housing-related businesses. Aerospace is also making a comeback through airlines' need to replace aging planes, driving demand for maintenance and parts, which demonstrates significant progress in aerospace-based companies. Meanwhile, only 25% of the $1.9 trillion in planned North American infrastructure projects have started construction, suggesting big growth ahead for equipment providers and construction companies. In 2025, industrial stocks look promising due to clean technology and automation advancements. As reported in Deloitte's 2025 Manufacturing Industry Outlook, over $31 billion went into clean-tech manufacturing facilities in 2024, showing a move toward sustainability. With decreasing interest rates and high demand for environmentally friendly tech, these investments are highly probable to drive growth in the industry. Ken Fisher noted made the following comment about the current situation: 'The fear is bigger than the problem can be. Single-period stock market comparisons are always iffy, but it may well be this goes something like the 1998 stock market correction leading to a 26% annual return.' His view suggests a more positive review of the industrial sector, predicting it will grow despite tariff concerns. With investments in automation, clean tech, and domestic production, these stocks have strong long-term potential even with short-term challenges. To compile this list, we reviewed Ken Fisher's SEC Q4 2024 13F filings. We picked 10 stocks with the highest upside potential from their current levels as of time of writing this article. Finally, we ranked the stocks in ascending order based on their highest analyst upside potential while also outlining hedge fund sentiment regarding these stocks, as per Insider Monkey's database 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 biohazard waste disposal team safely transferring contaminated water for treatment. Number of Hedge Fund Holders: 17 Upside Potential: 104.36% Montrose Environmental Group, Inc. (NYSE:MEG) is a diversified environmental services provider operating across the United States, Canada, and internationally. It caters to a wide range of industries, including oil and gas, utilities, government entities, chemicals, aerospace, and renewable energy. It is one of the industrial stocks with strong upside potential, backed by its expanding client base and rising demand for environmental services. For the year ended December 31, 2024, Montrose Environmental Group, Inc. (NYSE:MEG) reported record revenue of $696.4 million, reflecting an 11.6% year-over-year increase, supported by 8.3% organic growth. Q4 2024 revenue grew 14.1% year-over-year to $189.1 million, while full-year consolidated adjusted EBITDA reached $95.8 million, representing 13.8% of revenue. Diluted adjusted net income per share rose to $0.29 in Q4 from $0.27 a year earlier. The company's leverage ratio also improved significantly, standing at 2.1x by year-end. Moreover, Montrose Environmental Group, Inc. (NYSE:MEG) maintained a high 96% revenue retention rate for the third consecutive year, with strong cross-selling initiatives contributing 53% to 2024 revenue. International revenue grew notably to around 20% of total sales. Segment-wise, Measurement and Analysis led performance with robust year-over-year growth and strong margin expansion. In addition, the audit committee's independent review addressed short-seller allegations, finding no material issues, thereby reinforcing investor confidence. Looking ahead, Montrose Environmental Group, Inc. (NYSE:MEG) is targeting steady organic growth, stronger operational efficiencies, and expanding its private sector and international client base. Ken Fisher owns approximately $5.2 million worth of shares in Montrose Environmental Group, Inc., representing about 0.002% of his total portfolio, highlighting his belief in the company's long-term prospects. Overall, MEG ranks 1st on our list of billionaire Ken Fisher's industrial stock picks with huge upside potential. While we acknowledge the potential of MEG, our conviction lies in the belief that certain 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 MEG 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. Sign in to access your portfolio
Yahoo
02-05-2025
- Business
- Yahoo
United Airlines Holdings, Inc. (UAL): Among Billionaire Ken Fisher's Industrial Stock Picks with Huge Upside Potential
We recently published a list of . In this article, we are going to take a look at where United Airlines Holdings, Inc. (NASDAQ:UAL) stands against other billionaire Ken Fisher's industrial stock picks with huge upside potential. The economy strongly influences industrial stocks, which have fallen during recent downturns. However, 2025 looks like a key year for this sector, with these companies working in manufacturing, shipping, and aerospace, and investors are now focusing on businesses that adapt quickly to global shifts. The industrial sector grew 26% in 2024, showing strength despite high inflation and weak global demand. Going into 2025, these stocks are getting more attention thanks to new growth drivers and better economic conditions. Even with possible higher tariffs under Trump's trade policies, the outlook remains positive. President Trump has proposed a 25% tariff on steel and aluminum from countries like South Korea, Vietnam, and Canada. These tariffs might raise costs and also boost U.S. infrastructure and manufacturing spending; as Canada's Innovation Minister Francois-Philippe Champagne said, 'Canadian steel and aluminum support key industries in the U.S., from defense, shipbuilding, and auto. We will continue to stand up for Canada, our workers, and our industries.' All in all, this trade shift could help American industrial companies, especially those bringing supply chains back home. Moreover, lower interest rates should help the sector by increasing construction and housing projects in 2025. On the other hand, falling mortgage rates will attract more homebuyers, creating demand for building materials and equipment. Ken Fisher said, 'Investors are ignoring some of these positive developments,' pointing to an overlooked chance in housing-related businesses. Aerospace is also making a comeback through airlines' need to replace aging planes, driving demand for maintenance and parts, which demonstrates significant progress in aerospace-based companies. Meanwhile, only 25% of the $1.9 trillion in planned North American infrastructure projects have started construction, suggesting big growth ahead for equipment providers and construction companies. In 2025, industrial stocks look promising due to clean technology and automation advancements. As reported in Deloitte's 2025 Manufacturing Industry Outlook, over $31 billion went into clean-tech manufacturing facilities in 2024, showing a move toward sustainability. With decreasing interest rates and high demand for environmentally friendly tech, these investments are highly probable to drive growth in the industry. Ken Fisher noted made the following comment about the current situation: 'The fear is bigger than the problem can be. Single-period stock market comparisons are always iffy, but it may well be this goes something like the 1998 stock market correction leading to a 26% annual return.' His view suggests a more positive review of the industrial sector, predicting it will grow despite tariff concerns. With investments in automation, clean tech, and domestic production, these stocks have strong long-term potential even with short-term challenges. To compile this list, we reviewed Ken Fisher's SEC Q4 2024 13F filings. We picked 10 stocks with the highest upside potential from their current levels as of time of writing this article. Finally, we ranked the stocks in ascending order based on their highest analyst upside potential while also outlining hedge fund sentiment regarding these stocks, as per Insider Monkey's database 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 bird's eye view of a large commercial jetliner taking off from an airport runway. Number of Hedge Fund Holders: 86 Upside Potential: 37.92% United Airlines Holdings, Inc. (NASDAQ:UAL) carries passengers and cargo in the U.S., Canada, and across Atlantic, Pacific, and Latin American routes. The company runs a mix of mainline and regional planes, while offering side businesses like maintenance for other airlines, flight training, and rewards programs. During Q1 ending March 31, 2025, United Airlines Holdings, Inc. (NASDAQ:UAL) pulled in $13.2 billion in revenue, an increase of 5.4% from last year. The main drivers for this growth were a 4.9% increase in capacity, and revenue per seat mile growing slightly by 0.5%. The company's pre-tax income hit $478 million, a 3.6% margin, with adjusted pre-tax income at $391 million, a 3.0% margin. It also made $400 million in net income with earnings of $1.16 per share, or $0.91 adjusted. Furthermore, UAL generated $3.7 billion from operations and $2.3 billion in free cash while buying back $451 million in shares, finishing with $18.3 billion in cash against $27.7 billion in debt. United Airlines Holdings, Inc. (NASDAQ:UAL) had its best-ever Q1 performance in operations as premium seats jumped 9.2%, business travel grew 7.4%, and Basic Economy rose 7.6%. International flights stayed strong as Atlantic routes saw 4.7% higher revenue per seat, while Pacific routes jumped 8.5%. Additionally, future bookings in premium cabins are up 17%, and a record 85% of passengers checked in online. The airline also got FAA approval for Starlink WiFi, added international destinations, and flew its biggest Q1 schedule by seat miles ever. Despite economic uncertainty, United expects solid earnings for Q2 and full-year 2025. United Airlines Holdings, Inc. (NASDAQ:UAL) is cutting domestic flights by 4%, starting in Q3, to boost profits. The company's strategy focuses on premium seats, keeping costs down, and going green, including investing in the carbon capture company Heirloom. This approach should help United Airlines grow steadily in the worldwide airline business. Overall, UAL ranks 3rd on our list of billionaire Ken Fisher's industrial stock picks with huge upside potential. While we acknowledge the potential of UAL, our conviction lies in the belief that certain 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 UAL 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. Sign in to access your portfolio
Yahoo
02-05-2025
- Business
- Yahoo
Regal Rexnord Corporation (RRX): Among Billionaire Ken Fisher's Industrial Stock Picks with Huge Upside Potential
We recently published a list of . In this article, we are going to take a look at where Regal Rexnord Corporation (NYSE:RRX) stands against other billionaire Ken Fisher's industrial stock picks with huge upside potential. The economy strongly influences industrial stocks, which have fallen during recent downturns. However, 2025 looks like a key year for this sector, with these companies working in manufacturing, shipping, and aerospace, and investors are now focusing on businesses that adapt quickly to global shifts. The industrial sector grew 26% in 2024, showing strength despite high inflation and weak global demand. Going into 2025, these stocks are getting more attention thanks to new growth drivers and better economic conditions. Even with possible higher tariffs under Trump's trade policies, the outlook remains positive. President Trump has proposed a 25% tariff on steel and aluminum from countries like South Korea, Vietnam, and Canada. These tariffs might raise costs and also boost U.S. infrastructure and manufacturing spending; as Canada's Innovation Minister Francois-Philippe Champagne said, 'Canadian steel and aluminum support key industries in the U.S., from defense, shipbuilding, and auto. We will continue to stand up for Canada, our workers, and our industries.' All in all, this trade shift could help American industrial companies, especially those bringing supply chains back home. Moreover, lower interest rates should help the sector by increasing construction and housing projects in 2025. On the other hand, falling mortgage rates will attract more homebuyers, creating demand for building materials and equipment. Ken Fisher said, 'Investors are ignoring some of these positive developments,' pointing to an overlooked chance in housing-related businesses. Aerospace is also making a comeback through airlines' need to replace aging planes, driving demand for maintenance and parts, which demonstrates significant progress in aerospace-based companies. Meanwhile, only 25% of the $1.9 trillion in planned North American infrastructure projects have started construction, suggesting big growth ahead for equipment providers and construction companies. In 2025, industrial stocks look promising due to clean technology and automation advancements. As reported in Deloitte's 2025 Manufacturing Industry Outlook, over $31 billion went into clean-tech manufacturing facilities in 2024, showing a move toward sustainability. With decreasing interest rates and high demand for environmentally friendly tech, these investments are highly probable to drive growth in the industry. Ken Fisher noted made the following comment about the current situation: 'The fear is bigger than the problem can be. Single-period stock market comparisons are always iffy, but it may well be this goes something like the 1998 stock market correction leading to a 26% annual return.' His view suggests a more positive review of the industrial sector, predicting it will grow despite tariff concerns. With investments in automation, clean tech, and domestic production, these stocks have strong long-term potential even with short-term challenges. To compile this list, we reviewed Ken Fisher's SEC Q4 2024 13F filings. We picked 10 stocks with the highest upside potential from their current levels as of time of writing this article. Finally, we ranked the stocks in ascending order based on their highest analyst upside potential while also outlining hedge fund sentiment regarding these stocks, as per Insider Monkey's database 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 technician inspecting a specialized industrial machinery in an engineering lab. Number of Hedge Fund Holders: 34 Upside Potential: 59.55% Regal Rexnord Corporation (NYSE:RRX) delivers sustainable solutions in power transmission, automation, and motion control across North America, Asia, Europe, and other global markets. Operating through Industrial Powertrain Solutions, Automation, Motion Control, and Power Efficiency Solutions segments, the company provides a broad range of components such as gearboxes, motors, variable speed controls, and automation subsystems. Regal Rexnord Corporation (NYSE:RRX) serves industries including metals and mining, energy, HVAC, aerospace, robotics, and medical equipment, positioning it as one of the industrial stocks with significant upside potential due to its diversified end-market exposure. For the quarter ended December 31, 2024, Regal Rexnord Corporation (NYSE:RRX) posted adjusted earnings per share of $2.34, up 2.6% year-over-year, despite a 1.4% decline in organic sales. The company achieved a Q4 adjusted EBITDA margin of 21.7% and generated $185 million in adjusted free cash flow. Full-year debt reduction efforts were notable, with $938 million paid down, exceeding management's targets. Segment-wise, the Automation and Motion Control business saw positive order momentum in food and aerospace markets, while Power Efficiency Solutions benefited from robust residential HVAC growth. Moreover, Regal Rexnord Corporation (NYSE:RRX) continued advancing strategic initiatives, achieving $101 million in annual synergies and forming a new partnership with Honeywell Aerospace focused on the emerging eVTOL aircraft market. Despite persistent headwinds in general industrial markets and customer pushouts at year-end, daily orders grew by 4.4% in Q4 and remained positive in January 2025, indicating underlying demand stability. Management expects Q1 2025 to be the low point for sales and margins, followed by sequential improvements through the year. Looking ahead, Regal Rexnord Corporation (NYSE:RRX) is forecasting flat organic sales growth and an adjusted EBITDA margin of 23% for 2025, with adjusted EPS guidance ranging from $9.60 to $10.40. Ken Fisher owns approximately $59.7 million worth of shares in Regal Rexnord Corporation, representing about 0.02% of his total portfolio, reflecting his conviction in the company's long-term growth strategy. Overall, RRX ranks 2nd on our list of billionaire Ken Fisher's industrial stock picks with huge upside potential. While we acknowledge the potential of RRX, our conviction lies in the belief that certain 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 RRX 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. Sign in to access your portfolio
Yahoo
02-05-2025
- Business
- Yahoo
Advanced Drainage Systems, Inc. (WMS): Among Billionaire Ken Fisher's Industrial Stock Picks with Huge Upside Potential
We recently published a list of . In this article, we are going to take a look at where Advanced Drainage Systems, Inc. (NYSE:WMS) stands against other billionaire Ken Fisher's industrial stock picks with huge upside potential. The economy strongly influences industrial stocks, which have fallen during recent downturns. However, 2025 looks like a key year for this sector, with these companies working in manufacturing, shipping, and aerospace, and investors are now focusing on businesses that adapt quickly to global shifts. The industrial sector grew 26% in 2024, showing strength despite high inflation and weak global demand. Going into 2025, these stocks are getting more attention thanks to new growth drivers and better economic conditions. Even with possible higher tariffs under Trump's trade policies, the outlook remains positive. President Trump has proposed a 25% tariff on steel and aluminum from countries like South Korea, Vietnam, and Canada. These tariffs might raise costs and also boost U.S. infrastructure and manufacturing spending; as Canada's Innovation Minister Francois-Philippe Champagne said, 'Canadian steel and aluminum support key industries in the U.S., from defense, shipbuilding, and auto. We will continue to stand up for Canada, our workers, and our industries.' All in all, this trade shift could help American industrial companies, especially those bringing supply chains back home. Moreover, lower interest rates should help the sector by increasing construction and housing projects in 2025. On the other hand, falling mortgage rates will attract more homebuyers, creating demand for building materials and equipment. Ken Fisher said, 'Investors are ignoring some of these positive developments,' pointing to an overlooked chance in housing-related businesses. Aerospace is also making a comeback through airlines' need to replace aging planes, driving demand for maintenance and parts, which demonstrates significant progress in aerospace-based companies. Meanwhile, only 25% of the $1.9 trillion in planned North American infrastructure projects have started construction, suggesting big growth ahead for equipment providers and construction companies. In 2025, industrial stocks look promising due to clean technology and automation advancements. As reported in Deloitte's 2025 Manufacturing Industry Outlook, over $31 billion went into clean-tech manufacturing facilities in 2024, showing a move toward sustainability. With decreasing interest rates and high demand for environmentally friendly tech, these investments are highly probable to drive growth in the industry. Ken Fisher noted made the following comment about the current situation: 'The fear is bigger than the problem can be. Single-period stock market comparisons are always iffy, but it may well be this goes something like the 1998 stock market correction leading to a 26% annual return.' His view suggests a more positive review of the industrial sector, predicting it will grow despite tariff concerns. With investments in automation, clean tech, and domestic production, these stocks have strong long-term potential even with short-term challenges. To compile this list, we reviewed Ken Fisher's SEC Q4 2024 13F filings. We picked 10 stocks with the highest upside potential from their current levels as of time of writing this article. Finally, we ranked the stocks in ascending order based on their highest analyst upside potential while also outlining hedge fund sentiment regarding these stocks, as per Insider Monkey's database 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 worker in a hardhat walking down a corridor lined with thermoplastic corrugated pipes. Number of Hedge Fund Holders: 36 Upside Potential: 36.28% Advanced Drainage Systems, Inc. (NYSE:WMS) creates and produces thermoplastic corrugated pipes and water management products across North America and worldwide. It works across four major segments: Pipe, International, Infiltrator, and Allied Products, serving home builders, commercial construction, farms, and infrastructure projects. Its diverse geographic reach and strong presence in housing and infrastructure markets give the company solid growth potential. In fiscal Q3 ended December 31, 2024, Advanced Drainage Systems, Inc. (NYSE:WMS) brought in $691 million, up 4% from last year, partly due to the acquisition of Orenco. Adjusted EBITDA hit $191 million, down 6%, while earnings per share were $1.09, just missing targets. Free cash flow reached $374 million year-to-date, lower than the $564 million the year prior. Meanwhile, home construction sales grew 9%, and commercial sales jumped 7%, especially in southern regions. Advanced Drainage Systems, Inc. (NYSE:WMS) also introduced new EcoStream biofiltration systems and storage chambers. The company boosted its recycling operations in Georgia and kept incorporating Orenco's wastewater solutions. It is expected that these steps will improve the company's long-term profit margins. Although infrastructure sales dropped 6% compared to the previous year, Advanced Drainage Systems, Inc. (NYSE:WMS) maintains its expectation for 2025, hinting at stable prices and lower material costs. As weather conditions get harsher, demand for stormwater systems is increasing. With little competition disruption expected, the company feels good about its future. Ken Fisher owns about $3.7 million in ADS stock, roughly 0.001% of his investment portfolio. Overall, WMS ranks 4th on our list of billionaire Ken Fisher's industrial stock picks with huge upside potential. While we acknowledge the potential of WMS, our conviction lies in the belief that certain 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 WMS 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. Sign in to access your portfolio
Yahoo
02-05-2025
- Business
- Yahoo
Veralto Corporation (VLTO): Among Billionaire Ken Fisher's Industrial Stock Picks with Huge Upside Potential
We recently published a list of . In this article, we are going to take a look at where Veralto Corporation (NYSE:VLTO) stands against other billionaire Ken Fisher's industrial stock picks with huge upside potential. The economy strongly influences industrial stocks, which have fallen during recent downturns. However, 2025 looks like a key year for this sector, with these companies working in manufacturing, shipping, and aerospace, and investors are now focusing on businesses that adapt quickly to global shifts. The industrial sector grew 26% in 2024, showing strength despite high inflation and weak global demand. Going into 2025, these stocks are getting more attention thanks to new growth drivers and better economic conditions. Even with possible higher tariffs under Trump's trade policies, the outlook remains positive. President Trump has proposed a 25% tariff on steel and aluminum from countries like South Korea, Vietnam, and Canada. These tariffs might raise costs and also boost U.S. infrastructure and manufacturing spending; as Canada's Innovation Minister Francois-Philippe Champagne said, 'Canadian steel and aluminum support key industries in the U.S., from defense, shipbuilding, and auto. We will continue to stand up for Canada, our workers, and our industries.' All in all, this trade shift could help American industrial companies, especially those bringing supply chains back home. Moreover, lower interest rates should help the sector by increasing construction and housing projects in 2025. On the other hand, falling mortgage rates will attract more homebuyers, creating demand for building materials and equipment. Ken Fisher said, 'Investors are ignoring some of these positive developments,' pointing to an overlooked chance in housing-related businesses. Aerospace is also making a comeback through airlines' need to replace aging planes, driving demand for maintenance and parts, which demonstrates significant progress in aerospace-based companies. Meanwhile, only 25% of the $1.9 trillion in planned North American infrastructure projects have started construction, suggesting big growth ahead for equipment providers and construction companies. In 2025, industrial stocks look promising due to clean technology and automation advancements. As reported in Deloitte's 2025 Manufacturing Industry Outlook, over $31 billion went into clean-tech manufacturing facilities in 2024, showing a move toward sustainability. With decreasing interest rates and high demand for environmentally friendly tech, these investments are highly probable to drive growth in the industry. Ken Fisher noted made the following comment about the current situation: 'The fear is bigger than the problem can be. Single-period stock market comparisons are always iffy, but it may well be this goes something like the 1998 stock market correction leading to a 26% annual return.' His view suggests a more positive review of the industrial sector, predicting it will grow despite tariff concerns. With investments in automation, clean tech, and domestic production, these stocks have strong long-term potential even with short-term challenges. To compile this list, we reviewed Ken Fisher's SEC Q4 2024 13F filings. We picked 10 stocks with the highest upside potential from their current levels as of time of writing this article. Finally, we ranked the stocks in ascending order based on their highest analyst upside potential while also outlining hedge fund sentiment regarding these stocks, as per Insider Monkey's database 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). An entrepreneur presenting the latest technology innovation in electrical components. Number of Hedge Fund Holders: 43 Upside Potential: 20.23% Veralto Corporation (NYSE:VLTO) is a key player in water analytics, treatment, and product ID tech. The company works through two main divisions: Water Quality (WQ) and Product Quality & Innovation (PQI). WQ handles precision tools and chemical treatment for cities and industries, while PQI provides digital management and printing solutions for consumer goods packaging. In the quarter ended December 31, 2024, Veralto Corporation (NYSE:VLTO) showed sales hitting $1.3 billion, up 4.4% from the previous year. Core sales grew 4.6%, with volume up 3.1% and pricing up 1.5%, while adjusted earnings jumped 9% to $0.95 per share, generating $263 million in free cash flow. The Water Quality division brought in $811 million with core sales climbing 4.9% and margins reaching 25.5%. The company's PQI division delivered $534 million, up 5.4%, with 24.9% margins. For all of 2024, Veralto's sales reached nearly $5.2 billion, with earnings up 11% to $3.54 per share. Veralto Corporation (NYSE:VLTO) generated $820 million in free cash and ended with $1.1 billion in cash on hand. Moreover, the company bought TraceGains for $350 million while putting $15 million into Axine Water Technologies, and selling off its AVT product line. Research and development spending grew to 5% of sales, backing new products like their 7920 UV Laser Marking System. For 2025, Veralto expects low to mid-single-digit sales growth, earnings between $3.60-$3.70, and cash conversion of 90-100%, and Q1 earnings should hit $0.84-$0.88. Strong demand for water treatment and packaging tech continues to drive the growth of Veralto Corporation (NYSE:VLTO) across regions. Overall, VLTO ranks 9th on our list of billionaire Ken Fisher's industrial stock picks with huge upside potential. While we acknowledge the potential of VLTO, our conviction lies in the belief that certain 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 VLTO 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. Sign in to access your portfolio
