Why Billionaire Activist Nelson Peltz Dropped Disney for Moving Trucks and Medical Supplies

Back in May, billionaire activist Nelson Peltz tried to shake up the happiest place on Earth—but it turns out, Mickey Mouse wasn’t in the mood. 

Peltz’s attempt to strong-arm his way into Disney fell flat, so he did what billionaires do best: cut his losses and bailed on the Mouse House with a $1 billion exit (basically the billionaire’s version of a bad breakup). But instead of moping around, Peltz did what any hedge fund honcho would—he went shopping for his next targets. 

Enter U-Haul and Solventum, two wildly different businesses that somehow caught Peltz’s eye. So why moving trucks and medical products? Let’s look at the deets.

Peltz’s first major post-Disney move? U-Haul Holdings (NYSE: UHAL)—the company you’ve probably used when you moved out of your college dorm (or helped a buddy who still hasn’t figured out how to pack). Peltz jumped headfirst, grabbing 390,000 shares of U-Haul’s Class A stock, worth $24 million, and 909,000 shares of Class B, valued at $54.6 million. That’s a $78 million bet on moving trucks.

So, why U-Haul? It’s not exactly Disney-level excitement, but the numbers are interesting. In Q4 of fiscal 2024, U-Haul saw its sales drop by 5%, and profits fell by 12%. Naturally, this spooked investors, and they bailed, which hit the stock pretty hard. The struggles came from lower demand for self-storage and rising operating costs, making investors hit the sell button. 

But in the fiscal 2025 first quarter, things started looking up. The self-moving segment (U-Haul’s bread and butter) posted gains for the first time in eight quarters, and self-storage revenue climbed 8.4%, even though occupancy slipped a bit.

That rebound pushed U-Haul’s stock nearly 20% the last couple of months. Plus, with a price-to-earnings (P/E) ratio around 15, U-Haul is looking like a solid value play. Compared to the broader market, that’s relatively cheap, meaning there’s likely room for the stock to keep climbing. And let’s be real—U-Haul’s massive fleet and nationwide network make it tough to compete against. (You’re not about to start your own moving company, are you?)

After U-Haul, Peltz didn’t take a break. He quickly turned to Solventum (NYSE: SOLV), a medical products company spun off from 3M earlier this year. Solventum had a rocky start post-spin-off, but it’s bounced back a hefty 50% from its lows. Peltz wasted no time, grabbing 5.4 million shares for $283.5 million at an average price of $61 per share. So far, that’s earned him a nice 13% gain.

So, why Solventum? They deal in sterilization devices, dressings, and other medical supplies—essential stuff for hospitals and clinics. It’s a steady, recession-resistant business (because let’s face it, people are always going to need hospitals). However, Solventum’s got a bit of a baggage claim—$8.3 billion in debt from 3M. But the good news? Management is on a mission to pay it down over the next two years, which could clean up the balance sheet significantly.

At around 12 times estimated earnings, Solventum’s trading below the industry average, meaning Peltz likely sees it as undervalued with solid growth potential. With the stock on the rise and debt being tackled, it’s no wonder Peltz made this his fifth-largest holding.

But considering U-Haul’s stock is only up 4% this year, while Solventum’s down 15%... Peltz might want to keep that U-Haul around—just in case he needs to move on from these picks too.

PS: We failed. Yep, you read that right. We didn’t hit our usual triple-digit target. Instead, our Wednesday pick only shot up 60%. Is that a letdown? Maybe for perfectionists, but to be honest, we’ll still take it. Want in on our next potential 100%+ winning trade alert? Click here to become a premium member.

Stock.News has positions in Disney.