Icahn Enterprises (IEP) Gains As Market Dips: What You Should Know

In the latest trading session, Icahn Enterprises (IEP) closed at $52.59, marking a +1.13% move from the previous day. This change outpaced the S&P 500's 0.2% loss on the day. Meanwhile, the Dow lost 0.14%, and the Nasdaq, a tech-heavy index, lost 0.12%.

Prior to today's trading, shares of the diversified holding company had gained 2.99% over the past month. This has outpaced the Conglomerates sector's loss of 2.15% and the S&P 500's loss of 3.29% in that time.

Wall Street will be looking for positivity from Icahn Enterprises as it approaches its next earnings report date. On that day, Icahn Enterprises is projected to report earnings of $0.22 per share, which would represent year-over-year growth of 140%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.06 billion, up 15.61% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.03 per share and revenue of $13.82 billion. These totals would mark changes of +144.4% and +35.98%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for Icahn Enterprises. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Icahn Enterprises currently has a Zacks Rank of #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 15.75, which means Icahn Enterprises is trading at a premium to the group.

The Diversified Operations industry is part of the Conglomerates sector. This group has a Zacks Industry Rank of 81, putting it in the top 33% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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