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Icahn Enterprises LP (IEP): A Top Pick in Carl Icahn’s Stock Portfolio

We recently compiled a list of the Carl Icahn Stock Portfolio: 7 Best Stocks to Buy. In this article, we are going to take a look at where Icahn Enterprises LP (NASDAQ:IEP) stands against the other stocks in the Carl Icahn Stock Portfolio.

Carl Icahn is a force to reckon with, having made a name and billions of dollars on questioning decisions and strategies of corporate leaders on Wall Street for decades. Often referred to as the ‘lone wolf of Wall Street,’ he will go down in history for his reputation and legacy as the most feared man on Wall Street.

At 88 years old, one would expect the billionaire investor to slow down. However, that is not the case. Icahn continues to send shockwaves with his moves and sentiments about the economy and the stock market.

READ ALSO: 10 Best Performing Warren Buffett Stocks in 2024 and 15 Worst 52-Week Low Stocks to Buy Now According to Short Sellers.

Nevertheless, bad press has been putting pressure on the legendary investor recently. He remains embroiled in allegations that he has been issuing unsustainably high dividends through his investment firm while also obtaining large amounts of personal loans through his holdings in the company. In 2023, short-selling firm Hindenburg Research questioned the dividends on offer and Icahn’s borrowing spree, terming the action a Ponzi-like scheme.

Without admitting wrongdoing, the legendary investor has already agreed to pay $2 million to settle US Securities and Exchange Commission charges that he failed to disclose significant borrowing against his shares.  Everything broke loose as Icahn’s investment firm lost more than 70% in market value, and the firm remains under scrutiny from Wall Street investors.

According to Gordon Haskett of Gordon Haskett Research Advisors, investors on Wall Street might lose confidence in the billionaire investor. For starters, there are concerns that further losses to Icahn’s investment firm could force investors to sell companies they currently hold.

Icahn rose to prominence by diversifying his investments on Wall Street into various sectors. His diversification has seen him invest in some of the market leaders in real estate, energy, financials, and the technology sectors.

The billionaire investor boasts an impressive track record of an average annualized return of 14%, trumping the S&P 500 return by 6%, between 2000 and 2022. The solid return stems from the billionaire investor leveraging an assertive investment strategy to acquire stakes in companies he believes are trading below their fair value.

Icahn has always used his influence to drive strategic changes as part of activist campaigns to unlock hidden value. He is best known for engaging in proxy fights, making public demands, and launching hostile takeovers as long as he believes there is an opportunity to unlock hidden value.

Given that Icahn is known for the high-risk high, reward strategy, his portfolio comprises stocks that have some hidden value that can be unlocked by doing the hard things.  While more opportunistic and less focused on specific sectors, Icahn’s holdings are spread across the technology, healthcare, and energy sectors.

Carl Icahn has amassed a fortune worth billions by investing in and advocating for profitable transformations in undervalued companies. Given his impressive history, it’s understandable that both Wall Street and Main Street investors are always eager to learn about the best stocks to buy.

His portfolio is well positioned to benefit from the US Federal Reserve cutting interest rates by 50 bases to support the struggling economy. The impact of lower interest rates on stocks largely depends on the underlying fundamentals—namely, the performance of corporate profits and the direction of the US economy, whether it’s moving towards a gentle or severe downturn. Analysts at Wells Fargo think that the global economy will also see advantages, given that major central banks globally have already reduced interest rates or are planning to do so soon.

Should the economy navigate a soft landing, a mix of lower interest rates and strong economic fundamentals will favor specific market segments, including real estate and smaller companies in which Icahn is heavily invested.

Moreover, Wall Street is optimistic that the decrease in interest rates will encourage well-established and financially solid companies to boost their spending and investments, which is expected to be reflected in their stock prices during the second half of 2024 and the beginning of 2025.

Our Methodology

To compile the list of the best stocks to buy, according to Carl Icahn, we scanned the legendary investor’s 13F portfolio at the end of Q2 2024. We analyzed the top seven stocks based on Icahn’s holdings focusing on why they stand out as solid investment plays. Finally, we ranked the stocks in ascending order based on the value of Icahn Capital’s stake in them.

At Insider Monkey, we are obsessed with the stocks that hedge funds pile into. The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).

A forklift stocking shelves with newly manufactured food packaging products.

Icahn Enterprises LP (NASDAQ:IEP)

Carl Icahn’s Q2 2024 Stake: $6.70 Billion

Number of Hedge Fund Investors as of Q2 2024: 3

Icahn Enterprises LP (NASDAQ:IEP) is Carl Icahn’s investment firm and biggest holding. It operates as a diversified holding company focused on opportunities in the energy, food, automotive, real estate, and Pharma businesses. The stock accounts for about 61% of Icahn’s Portfolio.

The massive holding concerns that Icahn Enterprises LP (NASDAQ:IEP) pays a dividend of $4 per share while offering a 25% yield. It is one of the highest in the industry and one reason the stock continues attracting income-focused investors.

Nevertheless, Icahn Enterprises has been a big disappointment, losing nearly two-thirds of market value amid negative publicity. It all started with short-seller Hindenburg Research accusing Icahn of running a Ponzi-like scheme with the company.

Hindenburg Research has always doubted Icahn Enterprise’s ability to pay the hefty $4 per share dividends, given the lack of sufficient cash flow to support the distribution. Suggestions that Icahn might be running a Ponzi-like scheme have already attracted the Securities and Exchange Commission, which has taken the billionaire investor to task for using his shares in the company to get loans.

Icahn Enterprises LP (NASDAQ:IEP) is submitting to sell $400 million worth of depository units in a market-based sale, which also appears to have rattled Wall Street. This action might lead to an additional reduction in the value of existing shareholders’ stakes, and the proposed sale is taking place when the shares are still 75% lower than their value before the Hindenburg report was issued the previous year.

As it stands, Icahn Enterprises LP (NASDAQ:IEP) remains under pressure even when trading at a price-to-earnings multiple of 28. The $4 a share dividend with a yield of about 29% is one of the positives that continues offering support to the stock.

By the end of Q2 2024, only three hedge funds held stakes in Icahn Enterprises LP (NASDAQ:IEP), up from one in the preceding quarter. The most significant holder was Carl Icahn’s Icahn Capital LP, with stakes valued at $6.70 billion.

Overall IEP ranks 1st on our list of the best stocks to buy according to Carl Icahn. While we acknowledge the potential of IEP as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than IEP, check out our report about the cheapest AI stock.

READ NEXT: $30 Trillion Opportunity: 15 Best Humanoid Robot Stocks to Buy According to Morgan Stanley and Jim Cramer Says NVIDIA ‘Has Become A Wasteland’.

Disclosure: None. This article is originally published at Insider Monkey.

AI, Tariffs, Nuclear Power: One Undervalued Stock Connects ALL the Dots (Before It Explodes!)

Artificial intelligence is the greatest investment opportunity of our lifetime. The time to invest in groundbreaking AI is now, and this stock is a steal!

AI is eating the world—and the machines behind it are ravenous.

Each ChatGPT query, each model update, each robotic breakthrough consumes massive amounts of energy. In fact, AI is already pushing global power grids to the brink.

Wall Street is pouring hundreds of billions into artificial intelligence—training smarter chatbots, automating industries, and building the digital future. But there’s one urgent question few are asking:

Where will all of that energy come from?

AI is the most electricity-hungry technology ever invented. Each data center powering large language models like ChatGPT consumes as much energy as a small city. And it’s about to get worse.

Even Sam Altman, the founder of OpenAI, issued a stark warning:

“The future of AI depends on an energy breakthrough.”

Elon Musk was even more blunt:

“AI will run out of electricity by next year.”

As the world chases faster, smarter machines, a hidden crisis is emerging behind the scenes. Power grids are strained. Electricity prices are rising. Utilities are scrambling to expand capacity.

And that’s where the real opportunity lies…

One little-known company—almost entirely overlooked by most AI investors—could be the ultimate backdoor play. It’s not a chipmaker. It’s not a cloud platform. But it might be the most important AI stock in the US owns critical energy infrastructure assets positioned to feed the coming AI energy spike.

As demand from AI data centers explodes, this company is gearing up to profit from the most valuable commodity in the digital age: electricity.

The “Toll Booth” Operator of the AI Energy Boom

  • It owns critical nuclear energy infrastructure assets, positioning it at the heart of America’s next-generation power strategy.
  • It’s one of the only global companies capable of executing large-scale, complex EPC (engineering, procurement, and construction) projects across oil, gas, renewable fuels, and industrial infrastructure.
  • It plays a pivotal role in U.S. LNG exportation—a sector about to explode under President Trump’s renewed “America First” energy doctrine.

Trump has made it clear: Europe and U.S. allies must buy American LNG.

And our company sits in the toll booth—collecting fees on every drop exported.

But that’s not all…

As Trump’s proposed tariffs push American manufacturers to bring their operations back home, this company will be first in line to rebuild, retrofit, and reengineer those facilities.

AI. Energy. Tariffs. Onshoring. This One Company Ties It All Together.

While the world is distracted by flashy AI tickers, a few smart investors are quietly scooping up shares of the one company powering it all from behind the scenes.

AI needs energy. Energy needs infrastructure.

And infrastructure needs a builder with experience, scale, and execution.

This company has its finger in every pie—and Wall Street is just starting to notice.

Wall Street is noticing this company also because it is quietly riding all of these tailwinds—without the sky-high valuation.

While most energy and utility firms are buried under mountains of debt and coughing up hefty interest payments just to appease bondholders…

This company is completely debt-free.

In fact, it’s sitting on a war chest of cash—equal to nearly one-third of its entire market cap.

It also owns a huge equity stake in another red-hot AI play, giving investors indirect exposure to multiple AI growth engines without paying a premium.

And here’s what the smart money has started whispering…

The Hedge Fund Secret That’s Starting to Leak Out

This stock is so off-the-radar, so absurdly undervalued, that some of the most secretive hedge fund managers in the world have begun pitching it at closed-door investment summits.

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Why? Because excluding cash and investments, this company is trading at less than 7 times earnings.

And that’s for a business tied to:

  • The AI infrastructure supercycle
  • The onshoring boom driven by Trump-era tariffs
  • A surge in U.S. LNG exports
  • And a unique footprint in nuclear energy—the future of clean, reliable power

You simply won’t find another AI and energy stock this cheap… with this much upside.

This isn’t a hype stock. It’s not riding on hope.

It’s delivering real cash flows, owns critical infrastructure, and holds stakes in other major growth stories.

This is your chance to get in before the rockets take off!

Disruption is the New Name of the Game: Let’s face it, complacency breeds stagnation.

AI is the ultimate disruptor, and it’s shaking the foundations of traditional industries.

The companies that embrace AI will thrive, while the dinosaurs clinging to outdated methods will be left in the dust.

As an investor, you want to be on the side of the winners, and AI is the winning ticket.

The Talent Pool is Overflowing: The world’s brightest minds are flocking to AI.

From computer scientists to mathematicians, the next generation of innovators is pouring its energy into this field.

This influx of talent guarantees a constant stream of groundbreaking ideas and rapid advancements.

By investing in AI, you’re essentially backing the future.

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A New Dawn is Coming to U.S. Stocks

I work for one of the largest independent financial publishers in the world – representing over 1 million people in 148 countries.

We’re independently funding today’s broadcast to address something on the mind of every investor in America right now…

Should I put my money in Artificial Intelligence?

Here to answer that for us… and give away his No. 1 free AI recommendation… is 50-year Wall Street titan, Marc Chaikin.

Marc’s been a trader, stockbroker, and analyst. He was the head of the options department at a major brokerage firm and is a sought-after expert for CNBC, Fox Business, Barron’s, and Yahoo! Finance…

But what Marc’s most known for is his award-winning stock-rating system. Which determines whether a stock could shoot sky-high in the next three to six months… or come crashing down.

That’s why Marc’s work appears in every Bloomberg and Reuters terminal on the planet…

And is still used by hundreds of banks, hedge funds, and brokerages to track the billions of dollars flowing in and out of stocks each day.

He’s used this system to survive nine bear markets… create three new indices for the Nasdaq… and even predict the brutal bear market of 2022, 90 days in advance.

Click to continue reading…