Icahn Enterprises (IEP) closed the most recent trading day at $51.26, moving -1.42% from the previous trading session. This change was narrower than the S&P 500's 4.32% loss on the day. Meanwhile, the Dow lost 3.94%, and the Nasdaq, a tech-heavy index, lost 0.35%.
Heading into today, shares of the diversified holding company had lost 5.09% over the past month, lagging the Conglomerates sector's loss of 4.93% and the S&P 500's loss of 3.75% in that time.
Wall Street will be looking for positivity from Icahn Enterprises as it approaches its next earnings report date. The company is expected to report EPS of $0.22, up 140% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.06 billion, up 15.61% from the year-ago period.
IEP's full-year Zacks Consensus Estimates are calling for earnings of $1.03 per share and revenue of $13.82 billion. These results would represent year-over-year changes of +144.4% and +35.98%, respectively.
Any recent changes to analyst estimates for Icahn Enterprises should also be noted by investors. 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. Icahn Enterprises is currently a Zacks Rank #2 (Buy).
Digging into valuation, Icahn Enterprises currently has a Forward P/E ratio of 50.49. For comparison, its industry has an average Forward P/E of 17.08, which means Icahn Enterprises is trading at a premium to the group.
The Diversified Operations industry is part of the Conglomerates sector. This industry currently has a Zacks Industry Rank of 91, which puts it in the top 37% 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.
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