In this article, we discuss the top 5 stock picks of billionaire Carl Icahn. If you want our detailed analysis of Icahn’s history, investment philosophy, and hedge fund performance, go directly to Billionaire Carl Icahn Portfolio: Top 10 Stock Picks.
5. Newell Brands Inc. (NASDAQ:NWL)
Carl Icahn’s Stake Value: $967,620 ,000
Percentage of Carl Icahn’s 13F Portfolio: 4.29%
Number of Hedge Fund Holders: 26
Newell Brands Inc. (NASDAQ:NWL), one of the top stock picks of Carl Icahn from the third quarter, is an American distributor of consumer and commercial products like stationery, writing implements, baby products, fragrances, and home appliances, among other items. Newell Brands Inc. (NASDAQ:NWL) sells a number of brands under its domain. Carl Icahn owns a $967.6 million position in the company as of Q3 2021, which accounts for 4.29% of his total investments.
Pzena Investment Management is one of the leading Newell Brands Inc. (NASDAQ:NWL) stakeholders from the third quarter, holding 26.1 million shares worth $579.2 million. Overall, of the 867 hedge funds tracked by Insider Monkey in Q3, 26 funds were long Newell Brands Inc. (NASDAQ:NWL), up from 25 funds in the preceding quarter.
Newell Brands Inc. (NASDAQ:NWL), on October 29, announced earnings for Q3. The company posted a $0.54 EPS, beating estimates by $0.04. The revenue came in at $2.79 billion, up 3.26% year-over-year, exceeding estimates by $5.9 million.
JPMorgan analyst Andrea Teixeira on November 1 upgraded Newell Brands Inc. (NASDAQ:NWL) to Overweight from Neutral with a price target of $27, up from $26, which provides an 18% potential upside.
4. CVR Energy, Inc. (NYSE:CVI)
Carl Icahn’s Stake Value: $1,186,171,000
Percentage of Carl Icahn’s 13F Portfolio: 5.26%
Number of Hedge Fund Holders: 16
CVR Energy, Inc. (NYSE:CVI) is a Texas-based holding company engaged in petroleum refining and the nitrogen fertilizer manufacturing business via its subsidiaries. Billionaire Carl Icahn, as of September 2021, holds over 71 million shares in CVR Energy, Inc. (NYSE:CVI), worth $1.18 billion, accounting for 5.26% of his Q3 investments.
CVR Energy, Inc. (NYSE:CVI) announced on November 1 its Q3 results. EPS in the period totaled -$0.24, missing estimates by -$0.22. The $1.88 billion revenue exceeded estimates by $150.85 million.
Due to macro headwinds and limited upside potential associated with the stock, Credit Suisse analyst Manav Gupta on October 27 downgraded CVR Energy, Inc. (NYSE:CVI) to Underperform from Neutral with a price target of $20, up from $19.
The Q3 database of Insider Monkey reported that 16 hedge funds were long CVR Energy, Inc. (NYSE:CVI), with total stakes amounting to $1.24 billion. Encompass Capital Advisors is one of the leading stakeholders of the company in the third quarter, with an $8.72 million position.
3. Occidental Petroleum Corporation (NYSE:OXY)
Carl Icahn’s Stake Value: $1,331,110,000
Percentage of Carl Icahn’s 13F Portfolio: 5.91%
Number of Hedge Fund Holders: 60
Carl Icahn decreased his stake in Occidental Petroleum Corporation (NYSE:OXY) by 9% in the third quarter, holding 45 million shares worth $1.33 billion in the company. The stock accounts for 5.91% of his Q3 13F securities. Occidental Petroleum Corporation (NYSE:OXY) is a Houston-based hydrocarbon exploration and petrochemical manufacturing company, with operations in multiple countries.
One of the leading Occidental Petroleum Corporation (NYSE:OXY) stakeholders from the third quarter is Rajiv Jain’s GQG Partners, holding 19.85 million shares valued at $587.2 million. Overall, 60 hedge funds tracked by Insider Monkey were long Occidental Petroleum Corporation (NYSE:OXY), up from 57 funds in the previous quarter.
On November 4, Occidental Petroleum Corporation (NYSE:OXY) reported earnings for Q3, posting an EPS of $0.87, beating estimates by $0.21. The quarterly revenue totaled $6.82 billion, up almost 108% year-over-year, outperforming estimates by $247.24 million.
Mizuho analyst Silvio Micheloto on November 30 raised the price target on Occidental Petroleum Corporation (NYSE:OXY) to $50 from $48 and kept a Buy rating on the shares, citing rising global demand and prices for oil.
Here is what Smead Capital Management has to say about Occidental Petroleum Corporation (NYSE:OXY) in its Q3 2021 investor letter:
“Oil stocks dominated our winners for the quarter. We showed that we have unlimited ability to tempt fate by buying into Occidental Petroleum (OXY) this year after it was our biggest loser of 2020. It gained 16.64% during the third quarter.”
2. Cheniere Energy, Inc. (NYSE:LNG)
Carl Icahn’s Stake Value: $1,579,188,000
Percentage of Carl Icahn’s 13F Portfolio: 7.01%
Number of Hedge Fund Holders: 49
Cheniere Energy, Inc. (NYSE:LNG), a liquified natural gas company from Houston, is one of the top stock picks of Carl Icahn from the third quarter, with the billionaire owning more than 16 million shares in Cheniere Energy, Inc. (NYSE:LNG), worth $1.57 billion, representing 7.01% of his Q3 portfolio.
Cheniere Energy, Inc. (NYSE:LNG), on November 4, reported its Q3 results. EPS in the quarter equaled -$4.23, missing estimates by -$5.50. The revenue totaled $3.20 billion, missing estimated revenue by $547.43 million.
On November 17, Mizuho analyst Robert Mosca initiated coverage of Cheniere Energy, Inc. (NYSE:LNG) with a Buy rating and a $122 price target. The analyst expects Cheniere Energy, Inc. (NYSE:LNG) to benefit from the lucrative market opportunities before the gas backdrop normalizes.
At the end of Q3, 49 hedge funds in the database of elite funds maintained by Insider Monkey reported owning stakes in Cheniere Energy, Inc. (NYSE:LNG), worth $3.1 billion. This is compared to the same number of funds in the preceding quarter, holding total stakes valued at $2.9 billion.
Michael Lowenstein’s Kensico Capital is one of the leading stakeholders of Cheniere Energy, Inc. (NYSE:LNG), holding a $341 million position in the company at the end of September.
Here is what Horizon Kinetics has to say about Cheniere Energy, Inc. (NYSE:LNG) in its Q3 2021 investor letter:
“Cheniere Energy, from this list, shows our time frame approach in action. The share price is up very substantially from when we initially bought it 2 ½ years ago, and it reaches new all-time highs almost monthly. The stock dropped by 50% early last year, and the entire return occurred this year. You might think, ‘Ok, 3 years, excellent performance, that’s it.’ That’s not why we bought it. We bought a certain business model, a value development pattern on a massive dormant asset, and a valuation discount.
We bought Cheniere because it was exceedingly cheap as it transitioned from a development stage operating company stage, having just turned profitable a year after completing its basic plant construction and selling its first shipload of liquified natural gas (LNG): 2017 loss of $(390) million vs. 2018 earnings of $470 million…” (Click here to see the full text)
1. Icahn Enterprises L.P. (NASDAQ:IEP)
Carl Icahn’s Stake Value: $12,343,750,000
Percentage of Carl Icahn’s 13F Portfolio: 54.8%
Number of Hedge Fund Holders: 4
Icahn Enterprises L.P. (NASDAQ:IEP) is an American conglomerate founded by Carl Icahn, who owns 95% of the company’s stock. The enterprise has vested interests in the energy, automotive, food packaging, metals, real estate, and home fashion sectors. Carl Icahn holds a $12.34 billion position in Icahn Enterprises L.P. (NASDAQ:IEP), which accounts for 54.8% of his total investments. Icahn Enterprises L.P. (NASDAQ:IEP) is the largest holding in the billionaire’s portfolio for the third quarter, with Icahn increasing his stake by 4% as of September this year.
Icahn Enterprises L.P. (NASDAQ:IEP), on November 2, reported earnings for Q3. The GAAP EPS totaled -$0.55, missing estimates by -$0.66. The $2.65 billion revenue outperformed revenue estimates by $18 million.
Murray Stahl’s Horizon Asset Management is one of the 4 hedge funds that were long Icahn Enterprises L.P. (NASDAQ:IEP) in the third quarter, holding 561,214 shares in the company, worth $28 million.
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