Solventum Corporation (SOLV): Among Billionaire Nelson Peltz's Stock Picks with Highest Upside Potential

We recently published a list of Billionaire Nelson Peltz’s 8 Stock Picks with Highest Upside Potential. 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.

Our Methodology

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 (see more details here).

Solventum Corporation (NYSE:SOLV)

Trian Partners’ Stake: $559,053,823

Number of Hedge Fund Holders: 41

Analyst Upside Potential: 26.77%

Solventum 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).

Solventum, formerly 3M’s health care business, was spun out to shareholders in 2024. It provides a portfolio of solutions to address critical patient needs. The company has been challenged by years of underinvestment and market-share losses. However, the new management team is focused on driving revenue growth in line with peers’ — which we think is likelier as a standalone company. We also expect Solventum to optimize research and development to improve its sales mix and include new products.”

Overall, SOLV ranks 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 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.