David Einhorn offers five top turnaround stocks

Hedge fund manager and Greenlight Capital founder David Einhorn, speaking at the Sohn Investment Conference on Tuesday, named five undervalued companies that he believes are in the midst of an operational turnaround and whose stocks offer the potential for a sharp rebound. Four of them are small caps, the other a large cap.

Einhorn is known for investing in “difficult situations.” “We’re finding interesting investments where management is repositioning businesses towards more durable, more disciplined, more generative growth,” Einhorn said at the conference, as quoted by CNBC. His picks are below.

Acadia Healthcare

Shares of Acadia Healthcare, an operator of behavioral health hospitals and clinics with a market capitalization of nearly $2.4 billion on the Nasdaq, could rise to $56 apiece if the company succeeds in increasing occupancy rates at its newer facilities and negotiating more favorable reimbursement terms with insurers, Einhorn said. Acadia Healthcare shares closed at $26 apiece on Tuesday implying upside of more than 115% based on Einhorn’s target price.

Wall Street is generally cautious on the stock's prospects: it has seven “buy” ratings from analysts, seven “hold” calls, and one “sell.” The average target price stands at $28.30 per share, about 9% above the Tuesday closing price.

Versant Media

The main advantage of Versant Media, which has a market capitalization of $5.7 billion, is its ability to generate significant cash flow, according to Einhorn. At the end of 2025, the company had nearly $1.1 billion in cash on its balance sheet, versus $8 million a year earlier. That allowed the company to announce a quarterly dividend of $0.38 per share and authorize a buyback program of up to $1 billion. Einhorn believes the free cash flow can be used not only for share repurchases, but also to grow the business through acquisitions.

Most Wall Street analysts disagree with Einhorn: four recommend holding Versant shares, three rate them a “buy,” and one has them at "sell." The average target price of $40.83 per share implies only about 2% upside.

Fluor 

Fluor Corporation, an engineering and construction company with a market capitalization of $6.2 billion on the New York Stock Exchange, is well positioned to benefit from a boom in capital spending on data centers and energy infrastructure, Einhorn said. For the first quarter, the company reported an 8% year-over-year decline in revenue to $3.6 billion, but said it was “encouraged by the significant number of new awards” across multiple industries, which positions it for “sustained profitable growth.” In February, Fluor announced it would partner with Centrus Energy in the expansion of its uranium enrichment plant, and in March disclosed a partnership with TeraWulf on a data center project.

Einhorn believes Fluor is “poised for success and revaluation.” In his view, the company’s shares could climb to $115 apiece within several years. That represents upside of roughly 2.6 times the Tuesday closing price.

Wall Street is less optimistic overall: six analysts rate the stock a “hold,” while four recommend "buy." The average target price is $52.40 per share, implying about 17% upside.

Victoria’s Secret

Lingerie retailer Victoria's Secret, which has a market capitalization of $3.7 billion, has managed to stabilize revenue even as margins remain under pressure from U.S. import tariffs, Einhorn noted. He expects margins to begin recovering in 2027, pushing the company’s shares above $80 apiece. That implies upside of roughly 72%.

Most Wall Street analysts are sanguine on Victoria’s Secret shares: the stock has eight “buy” ratings versus three “hold” calls. The average target price of $65.80 per share offers 41% upside.

Centene 

Health insurer Centene, which has a market capitalization of $29.3 billion, could become a major beneficiary of AI adoption through the automation of insurance claims processing, according to Einhorn. He also noted that the company struggled in 2025 because of rising medical costs. Centene reported that its HBR (health benefits ratio, which measures the percentage of premium revenue an insurer spends on medical care and quality improvement, rather than administrative costs or profit) rose from 88.3% in 2024 to 91.9% in 2025. However, the company also said that despite a difficult year, it managed to maintain positive momentum.

Einhorn believes the fair value of Centene is in the $85-102 per share range. That implies upside of over 43%.

The stock currently has 13 “hold” ratings from Wall Street analysts, nine “buy” recommendations, and one “sell.” The average target price of $54.70 per share is 8% below the last closing price.