Billionaire Ken Griffin shares 10 midcap stock picks with upside potential

From Yahoo Finance: 2025-05-13 13:57:00

Ken Griffin, founder of Citadel, is a prominent figure in the investment industry. Despite setbacks during the 2008 financial crisis, he managed a successful comeback. Griffin currently manages assets worth $65 billion, with his stock moves closely followed by investors.

Griffin’s 10 midcap stock picks, with potential upside, include Lululemon Athletica Inc. The company offers athletic apparel and is focusing on maintaining a distinctive brand image and strong customer relationships. Despite a projected reduction in gross margin, the stock is trading at a forward PE below its historic average.

Another stock pick is DexCom, a medical device company specializing in continuous glucose monitoring systems. After receiving FDA clearance for its G7 15-Day system, the company’s stock price surged. DexCom also confirmed its fiscal 2025 guidance, anticipating a 14% revenue growth.

United Airlines Holdings, Inc. is among Griffin’s picks, having seen a 5.66% surge last week. The airline is in talks with JetBlue Airways for a partnership to enhance loyalty programs and customer connectivity. UAL reaffirmed its FY 2025 guidance, with plans to decrease domestic capacity in Q3 to align with demand. Devon Energy Corporation’s stock shows strong potential with a 33.59% upside. The company’s focus on natural gas and oil production led to record-breaking oil production levels and solid free cash flows in 2024. Analysts are optimistic about the firm’s improved operational momentum and capital efficiency.

Align Technology, Inc. faces challenges with a declining stock price due to missed revenue and EPS targets. Despite this, the company expects revenue growth in 2025 with Clear Aligner volume growth and an increase in operating margin. Investors see the stock price drop as a buying opportunity.

Reddit, Inc. receives an Outperform rating from Oppenheimer, with a price target of $125. Analysts expect strong revenue growth in Q2 2025, driven by targeted ads and user data utilization. The company anticipates a significant increase in adjusted EBITDA, thanks to product improvements and international growth.

Neurocrine Biosciences, Inc. is upgraded to Outperform by RBC Capital Markets, offering an attractive buying opportunity. The company reaffirms its 2025 guidance after beating top-line estimates, expecting continued growth in INGREZZA sales and revenue from other products. RBC analysts view the current share price as a good entry point for investors.

Block, Inc. faces a declining stock price, down over 45% this year. Analysts express pessimism post the company’s recent quarter results, citing pressured fundamentals and concerns about an overly optimistic acceleration in the latter half of the year. Wall Street analysts express concerns over weaker Cash App spending. Mizuho’s Dan Dolev maintains an Outperform rating on XYZ stock, citing improved network density and product innovation. Square anticipates 12% gross profit growth in 2025, with high single digit GPV growth in Q2.

First Solar, Inc. has seen a one-third decrease in value over a year, trading at a PE of 10.77, below the 5-year average of 28.62. Revenue forecasted to be $4.5-5.5 billion for the year, with EPS between $12.50-$17.50. Solar energy demand expected to rise from data centers and AI.

DraftKings Inc. is upgraded from Hold to Buy by CFRA Research, with a price target of $52. DKNG shares have fallen 30% since Q4 earnings, providing a good entry point. Company ranks second in Jefferies’ sports betting and iGaming brands ranking. BMO Capital Markets upgrades DKNG with an Outperform rating, naming it a Top Pick for long-term growth.

Read more: Billionaire Ken Griffin’s 10 Midcap Stock Picks with Huge Upside Potential