In this article, we will look at 5 best stocks to buy according to billionaire Carl Icahn. If you want to read about Carl Icahn’s investment career, you can go directly to 10 Best Stocks to Buy According to Billionaire Carl Icahn.
5. Bausch Health Companies (NYSE:BHC)
Icahn Capital’s Stake Value: $793,378,000
Percentage of Icahn Capital’s 13F Portfolio: 3.62%
Number of Hedge Fund Holders: 48
Bausch Health Companies Inc. (NYSE:BHC) manufactures and sells a range of pharmaceutical, medical device, and over-the-counter (OTC) products. This May, Bausch Health Companies Inc. (NYSE:BHC) posted earnings for the fiscal first quarter of 2022. The company registered an EPS of $0.72, missing estimates by $0.30. The company generated revenues of $1.92 billion and missed consensus by $121.51 million.
This May, BMO Capital analyst Gary Nachman cut his price target on Bausch Health Companies Inc. (NYSE:BHC) to $15 from $26 but maintained a Market Perform rating on the shares.
As of March 31, Icahn Capital’s stake in Bausch Health Companies Inc. (NYSE:BHC) is valued at $793.37 million. The investment covers 3.62% of Carl Icahn’s 13F portfolio, making Bausch Health Companies Inc. (NYSE:BHC) rank fifth among the fund’s top 13F holdings. It is one of the best stocks to buy according to billionaire Carl Icahn.
At the end the first quarter of 2022, 48 hedge funds were bullish on Bausch Health Companies (NYSE:BHC) with stakes worth $3.17 billion. This is compared to 53 positions in the fourth quarter of 2021, with stakes worth $3.86 billion.
4. FirstEnergy Corp. (NYSE:FE)
Icahn Capital’s Stake Value: $869,861,000
Percentage of Icahn Capital’s 13F Portfolio: 3.97%
Number of Hedge Fund Holders: 33
FirstEnergy Corp. (NYSE:FE) generates, transmits, and distributes electricity in the United States. The company owns and operates coal-fired, nuclear, hydroelectric, natural gas, wind, and solar power generating facilities. As of March 31, Icahn Capital’s stakes in FirstEnergy Corp. (NYSE:FE) are valued at $869.86 million, which covers 3.97% of its investment portfolio. FirstEnergy Corp. (NYSE:FE) is among the best stocks to buy according to billionaire Carl Icahn.
This April, Credit Suisse analyst Nicholas Campanella initiated coverage of FirstEnergy Corp (NYSE:FE) with an Outperform rating and a $51 price target.
Insider Monkey spotted FirstEnergy Corp. (NYSE:FE) on 33 hedge fund portfolios at the end of the first quarter of 2022. The total stakes of these hedge funds were valued at $1.88 billion, up from $1.75 billion in the previous quarter with 40 positions. The hedge fund sentiment for this stock is positive.
ClearBridge Investments, an investment management firm, mentioned FirstEnergy Corp. (NYSE:FE) in its “Global Infrastructure Income Strategy” fourth-quarter 2021 investor letter. Here is what the firm said:
“On a regional level, the Strategy’s largest exposure is in the U.S. and Canada (44%), consisting of regulated and contracted utilities (31%) and economically sensitive user-pays infrastructure (13%).
During the quarter we initiated new positions in U.S. electric utility FirstEnergy. With supply chain issues, higher housing costs, higher commodity prices and producer price inflation remaining square in the sights for 2022, we think higher inflation is a risk for global markets. We expect growth to slow to trend or below by mid-2022 and U.S.”
3. Cheniere Energy, Inc. (NYSE:LNG)
Icahn Capital’s Stake Value: $1,348,037,000
Percentage of Icahn Capital’s 13F Portfolio: 6.16%
Number of Hedge Fund Holders: 62
As of March 31, Icahn Capital owns more than 9 million shares of Cheniere Energy, Inc. (NYSE:LNG) which bring the fund’s stakes to $1.34 billion. The investment covers 6.16% of Carl Icahn’s investment portfolio, making it rank among the top 5 holdings of his hedge fund.
On May 4, Cheniere Energy, Inc. (NYSE:LNG) announced earnings for the fiscal first quarter of 2022. The company reported earnings per share of $7.53, outperforming Wall Street consensus by $3.87. The company generated revenues of $7.48 billion, up 142.20% year over year, beating revenue consensus by $1.92 billion.
This May, RBC Capital analyst Elvira Scotto raised her price target on Cheniere Energy, Inc. (NYSE:LNG) to $178 from $151 and maintained an Outperform rating on the shares. The analyst sees the company as well-positioned to benefit from the growing global demand for liquefied natural gas.
At the close of Q1 2022, 62 hedge funds were bullish on Cheniere Energy, Inc. (NYSE:LNG) with stakes worth $3.20 billion. This is compared to 52 positions in the preceding quarter with stakes worth $3.38 billion.
Here is what ClearBridge Investments had to say about Cheniere Energy, Inc. (NYSE:LNG) in its third-quarter 2021 investor letter:
“Cheniere Energy is an energy infrastructure company that owns and operates U.S. liquefied natural gas (LNG) export facilities. Strong quarterly results and the disclosure of capital allocation policies were positively received by the markets. In addition, continued supply and demand tightness in the LNG market created a favorable commodity price environment.”
2. CVR Energy, Inc. (NYSE:CVI)
Icahn Capital’s Stake Value: $1,818,415,000
Percentage of Icahn Capital’s 13F Portfolio: 8.31%
Number of Hedge Fund Holders: 17
CVR Energy, Inc. (NYSE:CVI) is the second-best stock to buy according to billionaire Carl Icahn. As of March 31, Icahn Capital owns more than 71 million shares of CVR Energy, Inc. (NYSE:CVI) which amounts to a stake of $1.81 billion. The investment represents 8.31% of Carl Icahn’s investment portfolio.
This May, CVR Energy, Inc. (NYSE:CVI) released earnings for the fiscal first quarter of 2022. The company generated revenues of $2.37 billion, up 62.20% year over year, beating revenue consensus by $547.76 million. Moreover, CVR Energy, Inc. (NYSE:CVI) registered an EPS of $0.02 but missed estimates by $0.02.
This May, JPMorgan analyst Phil Gresh raised his price target on CVR Energy, Inc. (NYSE:CVI) to $32 from $26 and maintained an Underweight rating on the shares.
At the close of the first quarter of 2022, 17 hedge funds were long CVR Energy, Inc. (NYSE:CVI) with stakes of $1.88 billion. This is compared to 13 hedge funds in the preceding with stakes worth $1.23 billion.
1. Icahn Enterprises LP (NASDAQ:IEP)
Icahn Capital’s Stake Value: $13,348,465,000
Percentage of Icahn Capital’s 13F Portfolio: 61.04%
Number of Hedge Fund Holders: 4
Icahn Enterprises LP (NASDAQ:IEP) is an industrial conglomerate that has operations in investment, energy, automotive, food packaging, real estate, home fashion, and pharma businesses in the United States and Internationally. As of March 31, Icahn Capital owns more than 257.04 million shares of the company which amounts to a stake value of $13.34 billion. The investment covers 61.04% of Carl Icahn’s 13F portfolio.
On May 6, Icahn Enterprises LP (NASDAQ:IEP) reported earnings for the fiscal first quarter of 2022 in which it beat both EPS and revenue expectations. The company registered an EPS of $1.06, beating Wall Street estimates by $0.93. Icahn Enterprises LP (NASDAQ:IEP) generated quarterly revenues of $4.08 billion, up 20.69% year over year, beating revenue consensus by $1.81 billion.
By the end of the first quarter of 2022, 4 hedge funds were long Icahn Enterprises LP (NASDAQ:IEP) with stakes of $13.37 billion. This is compared to 3 positions in the previous quarter with stakes of $12.78 billion. The hedge fund sentiment for Icahn Enterprises LP (NASDAQ:IEP) is positive.
You can also take a look at 10 Best Stocks to Buy Under $30 According to Bruce Kovner’s Caxton Associates and 10 Best Stocks To Buy Under $10 According To Hedge Funds.
