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.”
4. Cheniere Energy, Inc. (NYSE: LNG)
Icahn’s Stake Value: $1,164,301,000
Percent of Carl Icahn’s 13F Portfolio: 4.88%
Number of Hedge Fund Holders: 40
Cheniere Energy, Inc. (NYSE: LNG) is an energy infrastructure company involved in the liquefied natural gas business in the US. The company reported a consolidated adjusted EBITDA of $1.5 billion for Q1 of 2021 which is an increase of approximately 40% compared to the first quarter of 2020. The net income was reported to be $393 million or $1.56 per share for the quarter. The company has increased its full year 2021 EBITDA guidance to approximately $4.3-$4.6 billion due to improved market margins.
Cheniere Energy Inc’s revenue increased to $3.09 billion in the first quarter from $2.71 billion a year earlier. As the LNG industry is experiencing growth, Cheniere Energy, Inc. (NYSE: LNG) is capitalizing on this increased demand which is also reflected in the company’s strong financial performance for the quarter.
3. Newell Brands Inc. (NASDAQ: NWL)
Icahn’s Stake Value: $1,170,410,000
Percent of Carl Icahn’s 13F Portfolio: 4.9%
Number of Hedge Fund Holders: 24
Newell Brands Inc. (NASDAQ: NWL) is involved in the designing, manufacturing, sourcing, and distribution of consumer and commercial products around the world. The company’s shares rose by 1% after the consumer goods company announced a first quarter profit and raised its guidance for the year. Newell Brands Inc. (NASDAQ: NWL) announced a net income of $89 million or $0.21 per share in Q1 of 2021 compared to a loss of $1.28 billion or $3.02 in 2020. Sales were also up from $1.89 billion in 2020 to $2.07 billion in 2021.
The company announced a quarterly cash dividend of $0.23 per share which is payable on June 15 2021 to common stockholders of the company. Newell Brands Inc. (NASDAQ: NWL) also raised its 2021 full year sales outlook to $9.9 – $10.1 billion.
2. CVR Energy, Inc. (NYSE: CVI)
Icahn’s Stake Value: $1,365,591,000
Percent of Carl Icahn’s 13F Portfolio: 5.72%
Number of Hedge Fund Holders: 18
CVR Energy, Inc. (NYSE: CVI) along with its subsidiaries is involved in petroleum refining and the manufacturing or nitrogen fertilizers in the US. The company announced a net loss of $39 million or $0.39 per diluted share compared to a net loss of $87 million or $0.87 per diluted share in Q1 of 2020. Moreover, the first quarter EBITDA was less than $1 million compared to a loss of $38 million in the same quarter of the previous year. Consolidated cash and cash equivalents were $707 million as of March 31, 2021, an increase of $40 million from December 31, 2020.
It is clear that the company is on track for recovery from the effects of the COVID-19 pandemic. The board of CVR Energy, Inc. (NYSE: CVI) has also approved a special dividend of $492 million which is payable to Delek US Holdings, Inc. by July 26, 2021.
1. Occidental Petroleum Corp (NYSE: OXY)
Icahn’s Stake Value: $2,290,046,000
Percent of Carl Icahn’s 13F Portfolio: 9.6%
Number of Hedge Fund Holders: 52
Taking the number 1 spot in the list of the 10 best stocks to buy according to billionaire Carl Icahn is Occidental Petroleum Corp (NYSE: OXY) which is an oil and gas company operating in the US, Latin America, the Middle East, and Africa. The company announced a net loss of $346 million or $0.36 per diluted share in the first quarter of 2021 as compared to a net loss of $1.3 billion or $1.41 per diluted share in the fourth quarter of 2020. The board of directors of the company have declared a regular quarterly dividend of $0.01 per share on common stock that is payable on July 15, 2021.
Occidental Petroleum Corp (NYSE: OXY) is well positioned to use its excess cash flows and asset sales proceeds to reduce its debt and other financial obligations. Their strong operational performance has strengthened their financial position as compared to the previous year. The company’s shares have added about 58.2% since the beginning of 2021 as compared to S&P 500 gain of 12.7%. As oil prices have bounced back from their lows, Occidental’s financial results are bound to improve during the current fiscal year. Occidental Petroleum Corp (NYSE: OXY) was also upgraded to “Buy” from “Neutral” by MKM Partners.
You can also take a peek at 10 Best Aristocrat Dividend Stocks to Buy and 10 Best Dividend Stocks to Buy According to Billionaire Richard Chilton.
