In this article we will look at 4 value stocks to buy according to billionaire investor Carl Icahn. If you want to explore similar stocks, you can go to Carl Icahn’s 2022 Portfolio: 9 Value Stock Picks.
4. Newell Brands Inc. (NYSE:NWL)
Icahn Capital’s Stake Value: $708,038,000
Percentage of Icahn Capital’s 13F Portfolio: 3.23%
PE Ratio as of May 31: 11.46
Number of Hedge Fund Holders: 31
Newell Brands Inc. (NYSE:NWL) designs, manufactures, sources, and distributes consumer and commercial products worldwide. The company operates through five business segments: Commercial Solutions, Home Appliances, Home Solutions, Learning and Development, and Outdoor and Recreation. Newell Brands Inc. (NYSE:NWL) is one of the top value stock picks of Carl Icahn. As of March 31, Icahn Capital owns more than 33.07 million shares of the company which amounts to a stake of $708.03 million. The investment covers 3.23% of Carl Icahn’s 13F portfolio.
In addition to being undervalued, Newell Brands Inc. (NYSE:NWL) is also a dividend player. As of May 31, the stock has a forward PE ratio of 11.46 and a dividend yield of 4.20%. On May 5, Newell Brands Inc. (NASDAQ:NWL) declared a quarterly cash dividend of $0.23 per share. The dividend is payable on June 15 to investors of record on May 31.
On April 29, Newell Brands Inc. (NYSE:NWL) announced market-beating earnings for the fiscal first quarter of 2022. The company generated revenues of $2.39 billion, up 4.37% year over year, and outperformed Wall Street estimates by $109.54 million. The company registered an EPS of $0.36 and beat estimates by $0.09.
As of March 30, JPMorgan analyst Andrea Teixeira has a $26 price target and an Overweight rating on Newell Brands Inc. (NASDAQ:NWL).
By the end of the first quarter of 2022, 31 hedge funds were long Newell Brands Inc. (NYSE:NWL) with stakes worth $1.64 billion. This is compared to 26 hedge funds in the fourth quarter of 2021 with stakes of $1.74 billion.
3. Bausch Health Companies (NYSE:BHC)
Icahn Capital’s Stake Value: $793,378,000
Percentage of Icahn Capital’s 13F Portfolio: 3.62%
PE Ratio as of May 31: 2.47
Number of Hedge Fund Holders: 48
Bausch Health Companies Inc. (NYSE:BHC) operates as a healthcare company that manufactures and sells a variety of pharmaceutical, medical device, and over-the-counter (OTC) products. This May, Bausch Health Companies Inc. (NYSE:BHC) reported earnings for the fiscal first quarter of 2022. The company reported earnings per share of $0.72, missing EPS expectations by $0.30. The company generated revenues of $1.92 billion and missed revenue consensus by $121.51 million.
As of March 31, Icahn Capital owns over 34.72 million shares of Bausch Health Companies Inc. (NYSE:BHC) which bring the fund’s stakes in the company to $793.37 million. The investment covers 3.62% of Carl Icahn’s 13F portfolio. Bausch Health Companies Inc. (NYSE:BHC) is one of the best value stocks to buy according to Carl Icahn. As of May 31, the stock has a forward PE ratio of 2.47, trading at $9.72 a share with the company’s market capitalization at $3.50 billion.
On May 11, BMO Capital analyst Gary Nachman trimmed his price target on Bausch Health Companies Inc. (NYSE:BHC) to $15 from $26 and reiterated a Market Perform rating on the shares.
At the close of Q1 2022, 48 hedge funds were long Bausch Health Companies (NYSE:BHC) with stakes worth $3.17 billion. This is compared to 53 positions in the preceding quarter with stakes of $3.86 billion.
2. Cheniere Energy, Inc. (NYSE:LNG)
Icahn Capital’s Stake Value: $1,348,037,000
Percentage of Icahn Capital’s 13F Portfolio: 6.16%
PE Ratio as of May 31: 7.02
Number of Hedge Fund Holders: 62
Cheniere Energy, Inc. (NYSE:LNG) operates as an energy infrastructure company, primarily involved in the liquefied natural gas (LNG) business in the United States. Cheniere Energy, Inc. (NYSE:LNG) is one of the favorite value stock picks of billionaire Carl Icahn. As of March 31, Icahn Capital owns over 9.7 million shares of Cheniere Energy, Inc. (NYSE:LNG) which bring its stakes to $1.34 billion. The investment covers 6.16% of Carl Icahn’s investment portfolio.
This May, Cheniere Energy, Inc. (NYSE:LNG) released earnings for the fiscal first quarter of 2022. The company registered an EPS of $7.53, beating Wall Street expectations by $3.87. Cheniere Energy, Inc. (NYSE:LNG) generated $7.48 billion in quarterly revenues, up 142.20% year over year, and outperformed market consensus by $1.92 billion. Moreover, as of May 31, Cheniere Energy, Inc. (NYSE:LNG) has gained 60.30% over the past twelve months and has a forward PE ratio of 7.02.
On May 23, RBC Capital analyst Elvira Scotto raised her price target on Cheniere Energy, Inc. (NYSE:LNG) to $178 from $151 and reiterated an Outperform rating on the shares. The analyst views the company to be well-positioned to benefit from the growing global demand for liquefied natural gas.
Insider Monkey found 62 hedge funds bullish on Cheniere Energy, Inc. (NYSE:LNG) at the end of the first quarter of 2022. The total stakes of these hedge funds were valued at $3.20 billion. This is compared to 52 positions in the previous quarter with stakes worth $3.38 billion.
ClearBridge Investments mentioned Cheniere Energy, Inc. (NYSE:LNG) in its third-quarter 2021 investor letter, here is what the firm said:
“Cheniere Energy is an energy infrastructure company that owns and operates U.S. liquefied natural gas (LNG) export facilities. Strong quarterly results and the disclosure of capital allocation policies were positively received by the markets. In addition, continued supply and demand tightness in the LNG market created a favorable commodity price environment.”
1. CVR Energy, Inc. (NYSE:CVI)
Icahn Capital’s Stake Value: $1,818,415,000
Percentage of Icahn Capital’s 13F Portfolio: 8.31%
PE Ratio as of May 31: 9.56
Number of Hedge Fund Holders: 17
CVR Energy, Inc. (NYSE:CVI) engages in the petroleum refining business and nitrogen fertilizer manufacturing activities in the United States. The stock is among the top 13F holdings of Icahn Capital and is one of the best value stock picks of Mr. Icahn. As of May 31, CVR Energy, Inc. (NYSE:CVI) has gained 121.41% over the past six months and has a forward PE ratio of 9.56, trading at $34.43 per share with the company’s market capitalization sitting at $3.46 billion.
On May 2, CVR Energy, Inc. (NYSE:CVI) reported earnings for the fiscal first quarter of 2022. The company reported earnings per share of $0.02 and missed EPS estimates by $0.02. CVR Energy, Inc. (NYSE:CVI) generated revenues of $2.37 billion, up 62.20% year over year, beating revenue consensus by $547.76 million.
As of March 31, Icahn Capital owns over 71.19 million shares of CVR Energy, Inc. (NYSE:CVI) which amounts to a stake of $1.81 billion. The investment covers 8.31% of Carl Icahn’s 13F portfolio.
On May 17, JPMorgan analyst Phil Gresh raised his price target on CVR Energy, Inc. (NYSE:CVI) to $32 from $26 and reiterated an Underweight rating on the shares.
At the end of the first quarter of 2022, 17 hedge funds were bullish on CVR Energy, Inc. (NYSE:CVI) with stakes worth $1.88 billion. This is compared to 13 hedge funds in the fourth quarter of 2021 with stakes of $1.23 billion. The hedge fund sentiment for the stock is positive.
You can also take a look at 11 Best Value Stocks To Buy According To Warren Buffett and 10 Cheap Value Stocks To Buy According To Seth Klarman.
