Carl Icahn Stock Portfolio: 7 Best Stocks to Buy

2. CVR Energy Inc. (NYSE:CVI)

Carl Icahn’s Q2 2024 Stake: $1.79 Billion

Number of Hedge Fund Investors as of Q2 2024: 15

CVR Energy, Inc. (NYSE:CVI) is Carl Icahn’s best stock to buy to diversify an investment portfolio in the energy sector. The company specializes in refining and supplying gasoline, crude oil, distillate, diesel fuel, and other refined products.

In addition to being the second biggest holding, Icahn controls 66% of the company’s shares. Nevertheless, it has been under immense pressure, with oil prices dropping close to $70 a barrel in recent months.

CVR Energy, Inc. (NYSE:CVI) has also come under pressure to face stiff competition in its bid to acquire Citgo Petroleum for $8 billion. An investment group led by Gold Reserve and a unit of Koch Industries has already placed a $9 billion acquisition bid as well.

Citgo was expected to be a value addition to CVR Energy, Inc. (NYSE:CVI) as it has been profitable, reporting a net income of $410 million in the first quarter. On the other hand, CVR posted a net income of $21 million in the second quarter with earnings per share of $0.21.

CVR Energy, Inc. (NYSE:CVI) stands out as one of Carl Icahn’s top investment plays because it pays a forward annual dividend yield of 8.74%. The company has also announced a 50 cents cash dividend per share and declared a $1.90   cash distribution per common unit.  The company also exited the second quarter in a solid financial position, with its cash and cash equivalents increasing by $5 million to $586 million.

Insider Monkey’s second-quarter data shows that 15 hedge funds were optimistic about CVR Energy, Inc. (NYSE:CVI), down from 20 in the previous quarter. The largest stakeholder is Carl Icahn’s Icahn Capital LP.