Icahn Enterprises (IEP) Gains But Lags Market: What You Should Know
Icahn Enterprises (IEP) closed the most recent trading day at $50.25, moving +1.09% from the previous trading session. The stock lagged the S&P 500's daily gain of 1.97%. Elsewhere, the Dow gained 1.88%, while the tech-heavy Nasdaq added 0.25%.
Prior to today's trading, shares of the diversified holding company had lost 4.2% over the past month. This has was narrower than the Conglomerates sector's loss of 10.93% and the S&P 500's loss of 9.93% in that time.
Investors will be hoping for strength from Icahn Enterprises as it approaches its next earnings release. On that day, Icahn Enterprises is projected to report earnings of $0.22 per share, which would represent year-over-year growth of 140%. Our most recent consensus estimate is calling for quarterly revenue of $3.06 billion, up 15.61% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $1.03 per share and revenue of $13.82 billion, which would represent changes of +144.4% and +35.98%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Icahn Enterprises. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Icahn Enterprises is currently a Zacks Rank #2 (Buy).
Valuation is also important, so investors should note that Icahn Enterprises has a Forward P/E ratio of 48.26 right now. This represents a premium compared to its industry's average Forward P/E of 14.29.
The Diversified Operations industry is part of the Conglomerates sector. This group has a Zacks Industry Rank of 90, putting it in the top 36% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow IEP in the coming trading sessions, be sure to utilize Zacks.com.
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