Latest news with #SolventumCorporation
Yahoo
02-05-2025
- Business
- Yahoo
Solventum Corporation (SOLV): Among Billionaire Seth Klarman's Stock Picks with Huge Upside Potential
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 billionaire Seth Klarman's stock picks with huge upside potential. Seth Klarman is a legendary name in the hedge fund space. He entered Wall Street straight out of college, where he worked as an analyst for Mutual Shares Corporation. Klarman then proceeded to Baupost Group, where he has been ever since. Like most hedge fund managers, Klarman has a set of principles that guide his investment decisions. Most of these principles were captured in a 1991 book titled 'Margin of Safety: Risk-Averse Value Investing Strategies for the Thoughtful Investor.' Klarman has established himself as the foremost proponent of value investing. In fact, this is the central theme of the 1991 book. He advocates for removing emotions from the investing process and seeing opportunities for what they are. He writes: 'Successful investors tend to be unemotional, allowing the greed and fear of others to play into their hands.' READ ALSO: Billionaire Andreas Halvorsen's 10 Stock Picks With Huge Upside Potential and Billionaire Steve Cohen's 10 Large-Cap Stock Picks With Huge Upside Potential. In an interview with the Harvard Business School, Klarman insisted that he is unwilling to abandon value investing for other approaches. He maintained that 'value investing is intellectually elegant. You're basically buying bargains. It also appeals because all the studies demonstrate that it works. People who chase growth, who chase highfliers, inevitably lose because they paid a premium price. They lose to the people who have more patience and more discipline.' No wonder Baupost is one of the best-performing hedge funds in the world. The fund might have lagged behind giants like Third Point and Elliot in the 2015-2024 period but the ability to stay true to a decades-old strategy and still turn up gains is impressive. Last year, the fund culled approximately 20% of its investing team to try and steer the ship towards larger gains. To this, Klarman commented that 'with a somewhat smaller investment team, we have increased the level of energy, focus, accountability, and collaboration.' And these efforts are already bearing fruit. By December last year, the fund had gained 10%, the first double-digit return since 2021, according to Bloomberg. In other words, after 42 years in the game, Klarman is still able to turn his investment fortunes around. That is why it is prudent to see what stocks are in his portfolio, especially those with a huge upside potential. For this list, we combed through Baupost Group's Q4 2024 SEC 13F filings. We focused only on shares in companies and excluded interests in ETFs and options. From the result, we ranked the stocks in ascending order based on analyst price targets and selected the top 10 companies with the highest upside potential (as of April 29). 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 (). Seth Klarman of Baupost Group Solventum Corporation (NYSE:SOLV) is a healthcare company that spun off from 3M Company (NYSE:MMM) on April 1, 2024. The company operates through several business segments, including MedSurg, Dental Solutions, and Health Information Systems. It provides medical and surgical supplies, dental equipment and materials, and healthcare information technology solutions to healthcare providers worldwide. Solventum Corporation (NYSE:SOLV) reported positive sales growth in Q4 2024—increasing by 1.9% to $2.074 billion. For the full year 2024, the company delivered $8.254 billion in sales and $6.70 in adjusted earnings per share. The MedSurg and Dental Solutions segments were the primary drivers of organic sales growth. The company recently announced the sale of its Purification & Filtration business. This marks a significant milestone in its portfolio optimization strategy. At its 2025 Investor Day, CEO Bryan Hanson outlined an ambitious long-range plan through 2028. The firm targets organic sales growth of 4-5%, operating margins between 23-25%, and EPS compound annual growth rate of 10% over the three years. Still, on this point, Solventum (NYSE:SOLV) is executing a three-phased transformation plan. It focuses on stabilizing the business, enhancing strategic focus, and optimizing its portfolio. Analysts have given Solventum Corporation (NYSE:SOLV) an average rating of Hold and a 12-month median price target of $82.83, reflecting a 25.37% upside potential from the current price of $66.07 as of April 29. Overall, SOLV ranks 8th on our list of billionaire Seth Klarman's stock picks with huge upside potential. While we acknowledge the potential of SOLV as an investment, 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.
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
Yahoo
25-04-2025
- Business
- Yahoo
Solventum Corporation (SOLV): Among Billionaire Nelson Peltz's Stock Picks with Highest Upside Potential
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 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. 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 (). A healthcare professional in full protective gear performing a medical Corporation (NYSE:SOLV) is an international healthcare company that develops and sells various medical products. The company operates through four business segments including Medical Surgical, Dental Solutions, Health Information Systems, and Purification and Filtration. Through these segments, the company caters to various patient needs such as providing advanced wound care solutions, a suite of dental and orthodontic products, and even software solutions for healthcare providers. As per a March 21 report, Stifel Nicolaus analyst Rick Wise maintained a Buy rating on the stock with a price target of $88. Moreover, on March 21, Solventum Corporation (NYSE:SOLV) announced entering into a partnership with SprintRay to transform the digital dentistry market by enabling high-quality, permanent same-day dental restorations through chairside 3D printing technology. The collaboration focuses on developing and selling durable dentistry products. The company delivered growth in its fiscal fourth quarter results for 2024. Solventum Corporation (NYSE:SOLV) reported net sales of $2.074 billion up 1.9% year-over-year and 23% organically. Dental Solutions was the largest contributor to growth as its revenue grew 3% year-over-year to reach $315 million. Looking ahead, management expects organic sales growth of 1.0% to 2.0% for fiscal 2025, with free cash flow between $450 million to $550 million. 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). Overall, SOLV ranks 2nd on our list of billionaire Nelson Peltz's stock picks with highest upside potential. 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: 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
14-04-2025
- Business
- Yahoo
Solventum Corporation (NYSE:SOLV): Is the Spin-Off a Blessing in Disguise?
We came across a bullish thesis on Solventum Corporation (NYSE:SOLV) on ValueInvestorsClub by GCA. In this article, we will summarize the bulls' thesis on SOLV. The company's shares were trading at $74.24 when this thesis was published, vs. the closing price of $66.19 on Apr 11. A medical technician holding the instruments in her hands SOLV is a healthcare company that develops, manufactures, and commercializes a portfolio of solutions to address critical customer and patient needs in the United States and internationally. The company has four operating segments namely Medsurg, Dental Solutions, Health Information Systems, and Purification & Filtration. Medical/Surgical (Medsurg) accounts for more than 50% of the revenue and offers products related to speed healing and medical technologies. The remaining 45% of the revenue is almost equally distributed among the other three segments. SOLV has been operating for more than 70 years and commands a leadership position across most of its brands. Prior to its spin-off, SOLV generated FCF worth $1.4 billion. This is expected to reduce marginally to $1.1 billion with higher working capital and CAPEX requirements. However, the potential to improve cannot be ruled out as SOLV had earlier not been held back by the management at 3M. SOLV was subject to unfavorable service agreements with 3M and burdened with high debt levels. The potential for growth was limited due to low capital allocation. The spin-off is set to provide a more favorable outlook for SOLV's business and better management of its capital. There is also a possibility of a 2% margin expansion with better R&D spending and commercialization of its products as a standalone company. The CEO and CFO have earlier achieved similar operational efficiency with another spin-off, Covidien, and so the idea of a better financial performance does not seem too far-fetched. With a 2% projected revenue growth and an expansion in margin from 22% to 24%, SOLV should achieve an EBIT of $2.1 billion by 2027. Accounting for a multiple of 14x based on comparable companies, a fair value of the stock price in 2027 would be $146, offering a 120% upside. While we acknowledge the potential of SOLV as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. 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 the cheapest AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey.
Yahoo
30-01-2025
- Business
- Yahoo
Solventum Corporation (NYSE:SOLV) is largely controlled by institutional shareholders who own 63% of the company
Given the large stake in the stock by institutions, Solventum's stock price might be vulnerable to their trading decisions The top 9 shareholders own 51% of the company Ownership research along with analyst forecasts data help provide a good understanding of opportunities in a stock Every investor in Solventum Corporation (NYSE:SOLV) should be aware of the most powerful shareholder groups. We can see that institutions own the lion's share in the company with 63% ownership. Put another way, the group faces the maximum upside potential (or downside risk). Since institutional have access to huge amounts of capital, their market moves tend to receive a lot of scrutiny by retail or individual investors. As a result, a sizeable amount of institutional money invested in a firm is generally viewed as a positive attribute. Let's take a closer look to see what the different types of shareholders can tell us about Solventum. View our latest analysis for Solventum Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index. Solventum already has institutions on the share registry. Indeed, they own a respectable stake in the company. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Solventum, (below). Of course, keep in mind that there are other factors to consider, too. Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. We note that hedge funds don't have a meaningful investment in Solventum. The company's largest shareholder is 3M Company, with ownership of 20%. For context, the second largest shareholder holds about 9.4% of the shares outstanding, followed by an ownership of 6.1% by the third-largest shareholder. On further inspection, we found that more than half the company's shares are owned by the top 9 shareholders, suggesting that the interests of the larger shareholders are balanced out to an extent by the smaller ones. While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future. The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it. I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions. Our data suggests that insiders own under 1% of Solventum Corporation in their own names. Being so large, we would not expect insiders to own a large proportion of the stock. Collectively, they own US$5.3m of stock. Arguably recent buying and selling is just as important to consider. You can click here to see if insiders have been buying or selling. The general public-- including retail investors -- own 17% stake in the company, and hence can't easily be ignored. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run. We can see that public companies hold 20% of the Solventum shares on issue. This may be a strategic interest and the two companies may have related business interests. It could be that they have de-merged. This holding is probably worth investigating further. I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Like risks, for instance. Every company has them, and we've spotted 2 warning signs for Solventum (of which 1 can't be ignored!) you should know about. But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter future. NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
