David Einhorn, founder of Greenlight Capital, presented five key stock picks at the Sohn Investment Conference, emphasizing companies undergoing operational turnarounds and benefiting from AI adoption. His selections include Acadia Healthcare, Centene, Fluor, Versant Media, and Victoria’s Secret, each with unique catalysts for growth and potential for significant stock appreciation.
Einhorn highlighted how AI could revolutionize sectors like health insurance for Centene, while infrastructure plays like Fluor are poised to benefit from a capital spending boom. The investor’s analysis focuses on unlocking value through strategic management changes, improved margins, and increased visibility.
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Greenlight Capital founder David Einhorn has revealed his top five stock picks, focusing on companies poised for significant turnarounds driven by operational improvements and the adoption of artificial intelligence. Speaking at the Sohn Investment Conference, Einhorn expressed optimism about undervalued stocks with strong potential for growth.
Acadia Healthcare: Unlocking Value in Behavioral Health
Among Einhorn's top recommendations is Acadia Healthcare, a leading U.S. operator of behavioral health hospitals and clinics. Einhorn believes the company's underutilized newer facilities present a key opportunity. The strategy hinges on increasing occupancy rates to 70-80% and negotiating better reimbursement terms with insurers. He projects a potential doubling of the share price to around $56, assuming a 10x multiple.
Centene: AI-Driven Efficiency in Health Insurance
Health insurer Centene is another pick, with Einhorn highlighting its potential to leverage AI for automating labor-intensive claims processing. He noted that AI is particularly well-suited for repetitive tasks, and Centene could become a major beneficiary. Despite 2025 challenges with rising medical costs, Einhorn sees significant upside if margins normalize. He conservatively estimates a stock value between $85 and $102 per share, based on a 10-12x earnings multiple, compared to its current price of about $56.
Fluor: Poised for Growth in Infrastructure Boom
Industrial engineering and construction firm Fluor is positioned to capitalize on the U.S. capital spending boom. Einhorn pointed to the company's exposure to high-growth sectors such as data centers, pharmaceuticals, manufacturing, LNG infrastructure, nuclear power, and copper mining. He asserts that Fluor has successfully transformed itself after a period of near-failure and is now set for success and revaluation. Einhorn suggests the stock could reach $115 within a few years, especially if the company completes its share buyback program.
Einhorn also pitched Versant Media, arguing its focus on news and live sports insulates it from intense streaming competition. While acknowledging cord-cutting pressures, he emphasized Versant's strong cash generation capabilities. This cash flow provides flexibility for share repurchases or strategic acquisitions outside the traditional cable TV business. Einhorn estimates that Versant could generate free cash flow exceeding 60% of its market capitalization over the next four years.
Victoria's Secret: Margin Recovery on the Horizon
Rounding out the list is Victoria's Secret. Einhorn noted that while tariffs continue to pressure the lingerie retailer's margins, revenue trends have stabilized. He anticipates a significant profit margin recovery starting in 2027 and sees potential upside from tariff refunds. Greenlight Capital believes Victoria's Secret shares could climb to the low $80s, representing approximately 74% upside from current levels.
