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Yahoo
27-05-2025
- Business
- Yahoo
EY report: consumer products industry battling relevance as structural behaviors test ability to grow
New EY report urges consumer products (CP) firms to reclaim relevance with consumers, customers (retailers) and capital markets, offering a roadmap to thrive Without bold, focused investment, CP firms risk drifting into irrelevance Retailers are increasingly powerful while insurgent brands are thriving; the very largest CP brands must take action to survive increasing competition LONDON, May 27, 2025 /PRNewswire/ -- The consumer products (CP) industry is facing a critical juncture according to a new report and research released today by the EY organization. "The EY State of Consumer Products" report, which surveyed more than 500 CP manufacturers and retailers, more than 20,000 consumers, 190 CPCEOs across the globe, and conversations with 24 industry executives (report). The report offers a detailed analysis of the challenges and opportunities facing the CP industry and offers a roadmap on where to focus investment and innovation in today's rapidly evolving market. The report calls for CP firms to act with urgency to build brand relevance with consumers, customers (retailers) and capital markets, and transition away from past reliance on pricing power strategies to drive growth. Capital markets resetIn the evolving landscape of CP companies, investor expectations remain steadfast, seeking steady and reliable performance. However, confidence in the sector is waning, faced with cost-of-living pressures, many firms have focused on cutting costs, reducing innovation and honing tactical pricing strategies. Nearly two-thirds (65%) of CP leader respondents acknowledge that investor expectations are increasingly influencing their business strategies. With anemic volume performance in many firms and top-line growth challenged by difficult consumer pricing environment – CP leaders are looking for M&A to drive the next level of performance. Although 81% of CP leader respondents believe that growing valuation gaps will hinder widespread M&A recovery in the next few quarters, CP firms are accelerating M&A portfolio reviews and inorganic growth strategies to position themselves to capture new markets and segments. Acquisitions in CP often generate three-year higher growth, but lower shareholder returns and operating margins. While divestitures result with lower three-year and operating margins, but generate higher shareholder returns. To regain investor confidence, companies must prioritize a future-forward operating model fueled by technology, enhanced and granular commercial practices, and accelerated product innovation to capture and shape consumer trends. The sector can find opportunities to reinforce its defensive position to investors and adapt to the structural and cyclical challenges taking place in the sector, with a clear emphasis on sustainable performance and effective capital allocation. Rob Holston, EY Global and EY Americas Consumer Products Sector Leader, says:"Our findings present a roadmap for CP firms to reclaim relevance, restore belief in the power of brands and thrive in a changing world. By understanding the critical shifts in consumer expectations, retailer dynamics and capital market demands, leaders can act boldly to rebuild relevance to lead with confidence." Retailer capability and confidence growsThe report reveals that competing pressures on shelf space are increasingly shifting the dynamic between CP firms and retailers. Retailers are gaining leverage over CP firms through private label expansion, control of consumer data and retail media networks. Seventy-eight percent of retailer respondents believe that, in the long run, only one mass-market brand will remain on shelves, with the remaining shelf space made up of private labels, premium or niche brands. A view shared by 65% of consumer-packaged goods (CPG) companies. This signals that retailer confidence will likely become the catalyst for change, placing increased pressure on CP firms to define their relevance and profitability to maintain their place across physical and digital shelves. With retailer confidence growing, 76% of retailer respondents say shelf space is becoming a more significant tool in negotiations with CP firms. Seventy-eight percent of retailers plan to continue to expand into more premium and niche product categories, and 67% say they will prioritize the development of their own brands over the next three years. Perceptions of how the industry is evolving vary widely across regions. CP leaders in the Americas are most likely to predict a retailer-dominated future (47%), leading the charge by consolidating power through platform models, acquisitions and logistics control, while leaders in Europe, Middle East, India and Africa (EMEIA) are most likely to forecast stronger retailer and CP collaboration (40%). Asia-Pacific (APAC) leaders (41%) also predict retailer dominance. With retailers and CPs increasingly competing in the same spaces, the report reveals CPs face the potential of their influence eroding: 70% of CP leaders state the challenges they face now require new strategies. Challenger brands add further competition to shelf space with their ability to innovate and distribute new products quickly, often outpacing larger, more established brands with new technologies. Many CP leaders are doubling down on strategies such as reach, efficiency and control, but these, discussed in the report as "Defensive Scale" are no longer sufficient. Only one-third of very large companies (over $1billion in revenues), for example, prioritize selling through retailers; 67% want to build their own distribution channels to recapture power. Innovation and collaborationThe report finds that despite a shift in the dynamics between CP firms and retailers, both agree collaboration is still essential: 75% of retailers say working effectively with manufacturers is vital to their success and CPs largely agree (77% say working effectively with retailer is vital to their success). Bolstering innovation capability is a primary driver of CP firms' M&A strategies. Retailers are increasingly prioritizing innovation as an area for collaboration, yet 21% of CP firms are still not engaging in joint innovation efforts. 76% of CP leaders agree that innovation is becoming more complex and increasingly requires analytics and artificial intelligence (AI) — but fewer than a third (32%) believe their AI, data and analytics capabilities give them a competitive edge. 65% of retailers say they rely on CP manufacturers to bring new and exciting products to stores to drive traffic. Yet, fewer than a third of CP leaders see themselves as highly effective at accelerating new product innovation (31%) and scaling it rapidly (29%). An area fostering increasing collaboration between CPG companies and retailers is retail media, which allows retailers to monetize their first-party data from loyalty programs and e-commerce platforms, creating a valuable revenue stream. The report explores how retail media offers endless collaboration opportunities, such as identifying and engaging new audiences, which are crucial for maintaining brand relevance. Sixty-three percent of CP leader respondents say retail media is becoming more important in their negotiations with retailers, emphasizing its significance. Overall, retail media is set to drive a new common agenda for CPG and retailers, ensuring operational efficiency and alignment with growth agendas. Holston says:"CP firms continue to recognize retailers are increasingly calling the shots. To strengthen the retail relationship and secure relevance with consumers, CP brands must collaborate to compete. By embracing what we call 'Disruptive Optimism,' showing up with conviction with real-time consumer insights and how they can grow the total category, CPs will have every opportunity to be recognized as a category leader, strategic partner and source of shared value." Data and analyticsAdvancements in AI technologies are helping CP companies keep their longstanding role in the market by overcoming extended product development cycles and determining the best investment opportunities. AI, data and analytics capabilities are a top priority for retailer respondents (52%) and CPs respondents (45%) to strengthen their business over the next three years. Seventy-six percent of CP manufacturer respondents are increasingly reliant on AI to overcome innovation complexity and both parties agree collaboration across integrating AI and automation (Retailers 64%, CPs 61%) is essential to deliver mutual value. Holston says: "Commentators are too quick to say the CP industry is in the doldrums. The insurgent brands are thriving. The very largest CP companies seem in control of their own destiny. The challenge is for those in between." The report outlines five strategies for CPG companies to enhance their relevance and profitability: Portfolio innovation M&A Tech-enabled operating model Commercial excellence Marketing and AI "The EY State of Consumer Products" report is available at: Notes to editors About EY EY is building a better working world by creating new value for clients, people, society and the planet, while building trust in capital markets. Enabled by data, AI and advanced technology, EY teams help clients shape the future with confidence and develop answers for the most pressing issues of today and tomorrow. EY teams work across a full spectrum of services in assurance, consulting, tax, strategy and transactions. Fueled by sector insights, a globally connected, multi-disciplinary network and diverse ecosystem partners, EY teams can provide services in more than 150 countries and territories. All in to shape the future with confidence. EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. Information about how EY collects and uses personal data and a description of the rights individuals have under data protection legislation are available via EY member firms do not practice law where prohibited by local laws. For more information about our organization, please visit This news release has been issued by EYGM Limited, a member of the global EY organization that also does not provide any services to clients. About the EY "State of Consumer Products" report The report draws on multiple original quantitative research sources: We have collated feedback from more than 20,000 consumers. Through the EY Future Consumer Index, we've tracked changing consumer sentiment and behaviors across time horizons and global markets, identifying the new consumer segments that are emerging. The 15th edition of the EY Future Consumer Index surveyed 20,235 consumers across the US, Canada, Mexico, Brazil, Argentina, Chile, Colombia, the UK, Germany, France, Italy, Spain, Ireland, the Netherlands, Denmark, Sweden, Norway, Australia, New Zealand, Japan, China, India, South Korea, Saudi Arabia, South Africa and Nigeria between 24 January and 20 February 2025. We've held dozens of in-depth interviews with CPG C-suite executives and financial analysts providing deep insights into key topics, as well as interviews with EY leaders representing supply chain, M&A, commercial excellence and digital transformation. We've sought the perspectives of CP companies and retailers in the EY Consumer Products Dynamics Research. On behalf of the global EY organization, FT Longitude, the specialist research and content marketing division of the Financial Times Group, conducted an anonymous online survey of C-suite business leaders from 400 CP companies and 200 retailers around the world with annual revenues above US$1b, between 21 February and 21 March 2025. The survey explored the impact of specific trends and macroeconomic factors on the industry, and how organizations are responding, focusing on market challenges, competitive advantage and retailer-manufacturer dynamics. Respondents represented 17 countries (the US, Mexico, Brazil, Argentina, Canada, Germany, India, the UK, France, Italy, Nordics, Spain, South Africa, China, Japan, South Korea, Australia). Surveyed companies' annual global revenues were as follows: 68% US$1b-US$5b, 25% US$5b-US$20b, 8% >US$20b. We tapped into the quarterly EY-Parthenon CEO Pulse, last conducted in April 2025. It collected perspectives from 1,200 global CEOs, including 100 CP and 90 retail leaders, to assess their confidence in the sector, as well as strategic priorities, risks, opportunities and emerging trends. We conducted our own extensive secondary desk research using EY tools and databases, including Capital IQ, Euromonitor and Nielsen. Chloe Beebee EY Global Media Relations+44 (0)7859 Julia MenefeeEY Public Relations(+1) 850 228 View original content to download multimedia: SOURCE EY
Yahoo
27-04-2025
- Business
- Yahoo
Is Reddit, Inc. (RDDT) the Best New Stock to Buy According to Billionaires?
We recently published a list of . In this article, we are going to take a look at where Reddit, Inc. (NYSE:RDDT) stands against other best new stocks to buy according to billionaires. 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. 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 (). A person using a tablet device to interact with personalized content on a social platform. Reddit, Inc. (NYSE:RDDT) is an international social platform that operates on user-driven communities. The platform allows users to join and create communities of their interest and interact with like-minded people. There are more than 100,000 active communities that attract more than 100 million daily active users. During the fiscal fourth quarter of 2024, Reddit, Inc. (NYSE:RDDT) delivered a robust performance characterized by revenue and user growth. The revenue of the company grew 71% year-over-year to reach $427.7 million. The revenue growth was aided by the advertisement revenue which also grew 60% to reach $394.5 million. The company has been trying to make the platform more accessible internationally, to do this it launched a machine translation feature that can translate content in 8 languages. In addition, Reddit, Inc. (NYSE:RDDT) is also leveraging AI to enhance customer experience, during the quarter, the company launched a beta version of Reddit Answers which allows users to summarize the discussions using AI. On April 17, Truist Financial analyst Youssef Squali maintained a Buy rating on the stock. It is one of the best new stocks to buy according to billionaires. Munro Global Growth Small & Mid Cap Fund stated the following regarding Reddit, Inc. (NYSE:RDDT) in its : 'Key contributors to performance over the quarter were Reddit and AppLovin (see stock story on page 5). Reddit, Inc. (NYSE:RDDT) delivered a strong set of results, demonstrating impressive revenue growth and expanding operating margins. As the world grapples with misinformation and AI-generated content, we continue to view Reddit's position as a unique platform hosting the largest volume of human conversations globally becoming increasingly valuable.' Overall, RDDT ranks 2nd on our list of best new stocks to buy according to billionaires. While we acknowledge the potential of RDDT 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 RDDT but that trades at less than 5 times its earnings, check out our report about this . READ NEXT: and . Disclosure: None. This article is originally published at .
Yahoo
27-04-2025
- Business
- Yahoo
GE Vernova Inc. (GEV): The Best New Stock to Buy According to Billionaires
We recently published a list of . In this article, we are going to take a look at where GE Vernova Inc. (NYSE:GEV) stands against other best new stocks to buy according to billionaires. 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. 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 (). Copyright: areeya / 123RF Stock Photo GE Vernova Inc. (NYSE:GEV) is a global energy technology company that specializes in developing technologies that support the creation of sustainable electric power. The company operates through three main business segments including Power, Wind, and Electrification. The company came into being after being spun off from General Electric in April 2024. On April 24, William Blair analyst Jed Dorsheimer reiterated his Buy rating on the stock. The analyst rating is backed by the strong market position and growth potential of the company. It exceeded market expectations in fiscal Q1 2025 and has reaffirmed its guidance for the next year. This is particularly notable due to the tariff impact. Moreover, Dorsheimer noted that while the demand for power and electrification remains robust, the company has already sold out its gas turbine slots through 2028, whereas, the orders are extending to 2030. This gives the company a significant growth runway. GE Vernova Inc. (NYSE:GEV) released its Q1 2025 results on April 23. It grew its orders by 8% year-over-year to reach $10.2 billion. This growth was driven by the Power segment, with Power-related orders growing 28% organically. The company has a strong backlog of $4.4 billion, with 29 gigawatts of Gas Power equipment in the backlog. It is the best new stock to buy according to billionaires. Artisan Global Opportunities Fund stated the following regarding GE Vernova Inc. (NYSE:GEV) in its : 'Notable adds in the quarter included GE Vernova Inc. (NYSE:GEV) and Oracle. GE Vernova is the power, wind and electrification spinoff from the former GE conglomerate. The company benefits from large global market shares across its businesses, high barriers to entry and a substantial installed base that generates multiyear service revenue streams. Now that the company is standing on its own, we believe it is in the early innings of a turnaround story while benefiting from an attractive underlying demand environment. As the world continues to decarbonize, the resulting need for power, wind and electrification equipment is poised to drive attractive growth over the coming years. Our work on AI data center growth and electrification implications strengthened our conviction in GE Vernova in the quarter, particularly its natural gas business, which we believe will need to act as a bridge fuel as technology companies try to balance AI data center growth with decarbonization targets.' Overall, GEV ranks 1st on our list of best new stocks to buy according to billionaires. While we acknowledge the potential of GEV 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 GEV but that trades at less than 5 times its earnings, check out our report about this . READ NEXT: and . Disclosure: None. This article is originally published at .
Yahoo
27-04-2025
- Business
- Yahoo
SharkNinja, Inc. (SN): Among the Best New Stocks to Buy According to Billionaires
We recently published a list of . In this article, we are going to take a look at where SharkNinja, Inc. (NYSE:SN) stands against other best new stocks to buy according to billionaires. 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. 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 (). A close up of a consumer electronic product with the company's logo on the product label. SharkNinja, Inc. (NYSE:SN) is an international product design and technology company that specializes in lifestyle solutions for consumers. It is known for its aggressive innovative strategy that disrupts new product categories with innovative designs. The company operates through two major brands namely, Shark and Ninja, and has more than 31 household subcategories. On April 11, Alexander Perry from Bank of America Securities maintained a Buy rating on the stock with a price rating of $120. The analyst noted that SharkNinja, Inc.'s (NYSE:SN) point of sale data shows significant year-over-year growth, with no signs of slowing down. On top of this, the company can gain market share and has been outperforming market growth. Moreover, the company has mitigated the risks of tariffs on China and Southeast Asia by strategically shifting its production to other regions. During the fiscal fourth quarter of 2024, SharkNinja, Inc. (NYSE:SN) increased its net sales by 29.7% to reach $1.79 billion. This was driven by growth across four main categories including Cleaning Appliances, Cooking and Beverage Appliances, Food Preparation Appliances, and Beauty and Home Environment Appliances. Notably, the gross profit of the company increased 34.8% year-over-year to reach $839.5 million. Looking ahead, management anticipates to grow its net sales by 10% to 20% year-over-year. It is one of the best new stocks to buy according to billionaires. Munro Global Growth Small & Mid Cap Fund stated the following regarding SharkNinja, Inc. (NYSE:SN) in its : 'SharkNinja, Inc. (NYSE:SN) contributed -34bps to Fund performance for the quarter. SharkNinja, based in Needham Heights, Massachusetts, is a leading designer and marketer of electrical household appliances. Overall, SN ranks 3rd on our list of best new stocks to buy according to billionaires. While we acknowledge the potential of SN 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 SN but that trades at less than 5 times its earnings, check out our report about this . READ NEXT: and . Disclosure: None. This article is originally published at .
Yahoo
27-04-2025
- Business
- Yahoo
Solventum Corporation (SOLV): Among the Best New Stocks to Buy According to Billionaires
We recently published a list of . 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. 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. 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 (). A healthcare provider holding an MRI scan of a patient with a traumatic brain injury. 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 : '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). 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 . READ NEXT: and . Disclosure: None. This article is originally published at . Sign in to access your portfolio
