In this article we discuss the 5 best stocks to buy according to billionaire Carl Icahn. If you want to read our detailed analysis of Icahn’s investment philosophy, and hedge fund performance, go directly to the 10 Best Stocks to Buy According to Billionaire Carl Icahn.
At Insider Monkey we leave no stone unturned when looking for the next great investment idea. For example, advertising technology one of the fastest growing industries right now, so we are checking out stock pitches like this under-the-radar adtech stock that can deliver 10x gains. We go through lists like the 10 best hydrogen fuel cell stocks to pick the next Tesla that will deliver a 10x return. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our homepage. Keeping this in mind, let’s take a look at the best stocks to buy now according to Carl Icahn:
5. Bausch Health Companies Inc. (NYSE: BHC)
Icahn’s Stake Value: $1,082,624,000
Percent of Carl Icahn’s 13F Portfolio: 4.53%
Number of Hedge Fund Holders: 42
Bausch Health Companies Inc. (NYSE: BHC) is involved in over-the-counter products primarily in the areas of gastroenterology, dermatology, and eye health. The company reported an increase of revenue of 1% in Q1 of 2021 compared to the same quarter of the previous year. Total reported revenues were $2.027 billion which was an increase of $15 million year-over-year. The GAAP earnings per share for the quarter was $1.71 compared to $0.43 in the same quarter of 2020. During the quarter, the company also repaid its debt by approximately $200 million.
Bausch Health Companies Inc. (NYSE: BHC) has upgraded its outlook for fiscal year 2021. Its expected full-year revenue range is $8.60 to $8.80 billion.
In its Q1 2021 investor letter, Miller Value Partners highlighted a few stocks and Bausch Health Companies Inc. (NYSE:BHC) is one of them. Here is what the fund said:
“Bausch Health Companies (BHC) climbed 55% during the period. Glenview (6% owner) sent a letter to the company in early February arguing the company has not acted to unlock shareholder value and urging the company to sell its eye care business. Shortly after, activist investor Carl Icahn disclosing a 7.83% stake in the company. The company responded to the filing saying that they remain committed to splitting the business into two parts, but are open to pursuing all opportunities. The company reported strong 4Q results with better-than-expected 2021 guidance. 4Q revenue came in at $2,213M slightly ahead of consensus of $2,165M and EPS of $1.34 beat consensus of $1.12. The company guided for 2021 revenue of $8.6-8.8B coming in ahead of expectations of $8.55B with EBITDA of $3.4-3.55B ahead of $3.46B estimated. The company announced the transition of Paul Herendeen to an advisory role to be succeeded by Sam Eldessouky, previously senior vice president, controller and chief accounting officer. Finally, the company announced the sale of Amoun Pharmaceutical for $740M, which was relatively in line with estimates and should help support debt reduction targets ahead of the planned spin-off of Bausch + Lomb eye care business.”
