Activist investor Jeffrey Smith of Starboard Value unveiled three high-conviction stock picks at the 13D Monitor Active-Passive Investor Summit in New York this week.
The selections – Bill Holdings, TripAdvisor, and Fluor – reflect Smith’s belief in undervalued assets with strategic upside.
With Starboard taking meaningful stakes in each, Smith outlined a roadmap for operational improvement, asset monetization, and macro-driven tailwinds that could unlock shareholder value heading into 2026.
Bill Holdings Inc (NYSE: BILL)
Smith’s first spotlight was on Bill Holdings, a software platform that helps small and mid-sized businesses manage their payables.
According to him, the stock is trading at a steep discount, roughly 50% below its intrinsic value, despite having multiple monetization levers.
Bill generates revenue through subscriptions, transaction fees, and interest income on customer funds.
While growth slowed post-pandemic, Smith believes the company is poised for a profitability reset.
“They didn’t take enough action to improve profitability. They’ll fix that profile,” he said.
Starboard Value has already placed a representative on Bill’s board, signaling its intent to push for operational improvements.
All in all, Smith sees “significant upside” in BILL stock as the company reaccelerates.
TripAdvisor Inc (NASDAQ: TRIP)
Next on Jeffrey Smith’s list was TripAdvisor stock, where Starboard has amassed a 9% stake.
The online travel platform operates three distinct businesses: its flagship TripAdvisor site, Viator (a marketplace for experiences), and The Fork (a European restaurant booking platform).
Smith contends that TripAdvisor is undervalued given the strength of its assets, particularly The Fork, which he described as “the number one player in every single country in which it operates.”
With The Fork growing revenue north of 20% and improving margins, the activist investor urged the company to consider divesting the unit.
“The Fork is a valuable strategic asset, sellable and non-core,” he said, suggesting that a sale could crystallize value and refocus TRIP on its core strengths.
Fluor Corp (NYSE: FLR)
Rounding out the trio was Fluor stock – a global engineering and construction powerhouse. Smith recently disclosed a 5% stake in the company, betting on a resurgence in infrastructure and energy demand.
Smith highlighted FLR’s role as one of the top two global EPCM (engineering, procurement, and construction management) firms, calling it “well positioned just ahead of what may be historic infrastructure building.”
He also pointed to Fluor’s 39% ownership in NuScale Power, a developer of small modular nuclear reactors, as a hidden asset with long-term potential.
“As global demand for power surges… Fluor is going to be one of its biggest winners,” Smith said.
Despite Smith’s optimistic outlook, Fluor’s stock has faced headwinds, trading down by 0.97% this year after a substantial 26% rally in 2024.
Fluor responded by reaffirming its commitment to shareholder value and ongoing dialogue with investors.
Wall Street also currently has a consensus “overweight” rating on FLR shares, with price objectives going as high as $57.
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