10 Stocks Carl Icahn Loves in 2014

NEW YORK (Stockpickr) -- At Stockpickr, we track the top holdings of a variety of high-profile investors, such as Warren Buffett and George Soros. One of our most popular professional portfolios is that of Carl Icahn's Icahn Capital. Today, we're taking a closer look at Icahn's top 10 holdings as of the most recently reported quarter ended March 31. Read More: Warren Buffett's Top 10 Dividend Stocks 10. Transocean Transocean comprises 2.7% of Icahn's portfolio as of the most recently reported quarter. Icahn maintained his 21.5 million-share position from the previous quarter. TheStreet Ratings team rates Transocean a buy with a Ratings score of B-. TheStreet Ratings team has this to say about its recommendation: "We rate Transocean (RIG) a buy. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, revenue growth, attractive valuation levels and expanding profit margins. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself."Highlights from the analysis by TheStreet Ratings team are as follows: Transocean has improved earnings per share by 42.7% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, Transocean increased its bottom line by earning $3.87 versus $2.24 in the prior year. This year, the market expects an improvement in earnings ($4.21 versus $3.87). The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Energy Equipment & Services industry. The net income increased by 42.0% when compared to the same quarter one year prior, rising from $321.00 million to $456.00 million. RIG's revenue growth trails the industry average of 21.1%. Since the same quarter one year prior, revenues slightly increased by 7.1%. Growth in the company's revenue appears to have helped boost the earnings per share. 45.75% is the gross profit margin for Transocean which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 19.49% is above that of the industry average. You can view the full analysis from the report here: RIG Ratings Report Read More: 8 Stocks George Soros Is Buying 9. Herbalife Herbalife comprises 3% of Icahn's portfolio as of the most recently reported quarter. The 17 million-share position is an increase of 1% over the previous quarter. Herbalife is also a top holding in George Soros' portfolio. Soros Fund Management also increased its position in the stock in the most recently reported quarter. Herbalife was featured recently in "Bill Ackman's 2014 Gains May Give Time to Herbalife Short." TheStreet Ratings team rates Herbalife a buy with a Ratings score of B- "We rate Herbalife (HLF) a buy. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, good cash flow from operations, expanding profit margins and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income."Highlights from the analysis by TheStreet Ratings team are as follows: The revenue growth came in higher than the industry average of 0.5%. Since the same quarter one year prior, revenues rose by 12.4%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share. The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Personal Products industry and the overall market, Herbalife's return on equity significantly exceeds that of both the industry average and the S&P 500. Net operating cash flow has increased to $190.65 million or 38.52% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 12.09%. The gross profit margin for Herbalife is rather high; currently it is at 51.55%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 5.91% trails the industry average. Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year. You can view the full analysis from the report here: HLF Ratings Report Read More: 4 Stocks Warren Buffett Is Selling in 2014 8. Nuance Communications Nuance Communications comprises 3.2% of Icahn's portfolio as of the most recently reported quarter. Icahn maintained his 60.8 million-share position from the previous quarter. TheStreet Ratings team rates Nuance Communications a hold with a Ratings score of C. TheStreet Ratings team has this to say about its recommendation: "We rate Nuance Communications (NUAN) a hold. The primary factors that have impacted our rating are mixed ? some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow."Highlights from the analysis by TheStreet Ratings team are as follows: Despite its growing revenue, the company underperformed as compared with the industry average of 10.5%. Since the same quarter one year prior, revenues slightly increased by 5.5%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share. NUAN's debt-to-equity ratio of 0.91 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 1.44 is sturdy. The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Software industry. The net income has significantly decreased by 51.8% when compared to the same quarter one year ago, falling from -$25.85 million to -$39.23 million. Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Software industry and the overall market, Nuance Communication's return on equity significantly trails that of both the industry average and the S&P 500. You can view the full analysis from the report here: NUAN Ratings Report Read More: Warren Buffett's Top 10 Dividend Stocks 7. eBay eBay comprises 4.7% of Icahn's portfolio as of the most recently reported quarter. The 27.8 million-share position was new buy for Icahn Capital during the quarter. TheStreet Ratings team rates eBay a buy with a Ratings score of B. TheStreet Ratings team has this to say about its recommendation: "We rate eBay (EBAY) a buy. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, growth in earnings per share, increase in net income and good cash flow from operations. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."Highlights from the analysis by TheStreet Ratings team are as follows: EBAY's revenue growth has slightly outpaced the industry average of 11.5%. Since the same quarter one year prior, revenues rose by 12.6%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share. Although EBAY's debt-to-equity ratio of 0.28 is very low, it is currently higher than that of the industry average. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.20, which illustrates the ability to avoid short-term cash problems. EBAY has improved earnings per share by 8.2% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, eBay increased its bottom line by earning $2.18 versus $1.99 in the prior year. This year, the market expects an improvement in earnings ($2.97 versus $2.18). The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Internet Software & Services industry average. The net income increased by 5.6% when compared to the same quarter one year prior, going from $640.00 million to $676.00 million. Net operating cash flow has increased to $1,494.00 million or 47.77% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 17.73%. You can view the full analysis from the report here: EBAY Ratings Report Read More: 8 Stocks George Soros Is Buying 6. Chesapeake Energy Chesapeake Energy comprises 5.2% of Icahn's portfolio as of the most recently reported quarter, with a 66.5 million-share position maintained from the prior quarter. Chesapeake is also a top holding in Mohnish Pabrai's portfolio. TheStreet Ratings team rates Chesapeake Energy a buy with a Ratings score of B. TheStreet Ratings team has this to say about its recommendation: "We rate Chesapeake Energy (CHK) a buy. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth, compelling growth in net income, attractive valuation levels and good cash flow from operations. We feel these strengths outweigh the fact that the company shows low profit margins."Highlights from the analysis by TheStreet Ratings team are as follows: The revenue growth greatly exceeded the industry average of 3.5%. Since the same quarter one year prior, revenues rose by 47.4%. Growth in the company's revenue appears to have helped boost the earnings per share. Chesapeake Energy reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, Chesapeake Energy turned its bottom line around by earning $0.68 versus -$1.62 in the prior year. This year, the market expects an improvement in earnings ($2.03 versus $0.68). The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income increased by 632.8% when compared to the same quarter one year prior, rising from $58.00 million to $425.00 million. Net operating cash flow has increased to $1,291.00 million or 39.71% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 16.72%. You can view the full analysis from the report here: CHK Ratings Report Read More: 4 Stocks Warren Buffett Is Selling in 2014 5. Federal-Mogul Holdings Federal-Mogul Holdings comprises 6.9% of Icahn's portfolio as of the most recently reported quarter. Icahn Capital Maintained a 121.1 million-share position in the stock from the prior quarter. TheStreet Ratings team rates Federal-Mogul Holdings a hold with a Ratings score of C. TheStreet Ratings team has this to say about its recommendation: "We rate Federal-Mogul Holdings (FDML) a hold. The primary factors that have impacted our rating are mixed ? some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and notable return on equity. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, generally higher debt management risk and weak operating cash flow."Highlights from the analysis by TheStreet Ratings team are as follows: FDML's revenue growth has slightly outpaced the industry average of 3.3%. Since the same quarter one year prior, revenues slightly increased by 7.3%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share. Federal-Mogul has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, Federal Mogul turned its bottom line around by earning $0.89 versus -$0.99 in the prior year. This year, the market expects an improvement in earnings ($1.13 versus $0.89). The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Auto Components industry and the overall market, Federal-Mogul's return on equity significantly trails that of both the industry average and the S&P 500. Currently the debt-to-equity ratio of 1.76 is quite high overall and when compared to the industry average, suggesting that the current management of debt levels should be re-evaluated. Even though the debt-to-equity ratio is weak, FDML's quick ratio is somewhat strong at 1.24, demonstrating the ability to handle short-term liquidity needs. The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Auto Components industry. The net income has significantly decreased by 108.9% when compared to the same quarter one year ago, falling from $56.00 million to -$5.00 million. You can view the full analysis from the report here: FDML Ratings Report Read More: Warren Buffett's Top 10 Dividend Stocks 4. Forest Laboratories Forest Laboratories comprises 8.6% of Icahn's portfolio as of the most recently reported quarter. Icahn Capital maintained a 30.7 million-share position from the prior quarter. TheStreet Ratings information is not available at this time for Forest Laboratories. Of 17 analysts covering the stock, four rate it a strong buy, and 13 rate it a hold. Read More: 8 Stocks George Soros Is Buying 3. CVR Energy CVR Energy comprises 9.1% of Icahn's portfolio as of the most recently reported quarter. Icahn Capital maintained a 71.2 million-share position in the stock from the prior quarter. TheStreet Ratings team rates CVR Energy a buy with a Ratings score of B. TheStreet Ratings team has this to say about its recommendation: "We rate CVR Energy (CVI) a buy. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, attractive valuation levels, good cash flow from operations and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had somewhat weak growth in earnings per share."Highlights from the analysis by TheStreet Ratings team are as follows: CVI's revenue growth has slightly outpaced the industry average of 3.5%. Since the same quarter one year prior, revenues slightly increased by 4.0%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share. The current debt-to-equity ratio, 0.54, is low and is below the industry average, implying that there has been successful management of debt levels. To add to this, CVI has a quick ratio of 1.94, which demonstrates the ability of the company to cover short-term liquidity needs. Net operating cash flow has slightly increased to $281.30 million or 1.07% when compared to the same quarter last year. Despite an increase in cash flow, CVR Energy's cash flow growth rate is still lower than the industry average growth rate of 16.72%. In its most recent trading session, CVI has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year. You can view the full analysis from the report here: CVI Ratings Report Read More: 4 Stocks Warren Buffett Is Selling in 2014 2. Apple Apple comprises 12.3% of Icahn's portfolio as of the most recently reported quarter. Icahn Capital increased its position by 60% over the prior quarter. Apple is also one of Renaissance Technologies' and shows up in David Einhorn's Greenlight Capital portfolio. The stock was featured recently in "Must-See Charts: 5 Big Stocks to Buy for Tactical Gains." TheStreet Ratings team rates Apple a buy with a Ratings score of B+. TheStreet Ratings team has this to say about its recommendation: "We rate Apple (AAPL) a buy. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, expanding profit margins and solid stock price performance. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results."Highlights from the analysis by TheStreet Ratings team are as follows: Despite its growing revenue, the company underperformed as compared with the industry average of 8.6%. Since the same quarter one year prior, revenues slightly increased by 6.0%. Growth in the company's revenue appears to have helped boost the earnings per share. Although AAPL's debt-to-equity ratio of 0.26 is very low, it is currently higher than that of the industry average. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.18, which illustrates the ability to avoid short-term cash problems. The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. When compared to other companies in the Computers & Peripherals industry and the overall market, Apple's return on equity exceeds that of the industry average and significantly exceeds that of the S&P 500. 44.56% is the gross profit margin for Apple which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 20.69% is above that of the industry average. Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 54.18% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, AAPL should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year. You can view the full analysis from the report here: AAPL Ratings Report Read More: Warren Buffett's Top 10 Dividend Stocks 1. Icahn Enterprises Icahn's own Icahn Enterprises comprises 32.1% of Icahn Capital's portfolio as of the most recently reported quarter. The 102.9 million-share position is an increase of 1% over the previous quarter. TheStreet Ratings team rates Icahn Enterprises a hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation: "We rate Icahn Enterprises (IEP) a hold. The primary factors that have impacted our rating are mixed ? some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its solid stock price performance and reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, generally higher debt management risk and disappointing return on equity."Highlights from the analysis by TheStreet Ratings Team goes as follows: Compared to its closing price of one year ago, IEP's share price has jumped by 45.90%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year. Icahn Enterprises has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, Icahn Enterprises increased its bottom line by earning $8.98 versus $3.72 in the prior year. This year, the market expects an improvement in earnings ($9.41 versus $8.98). The gross profit margin for Icahn Enterprises is rather low; currently it is at 20.18%. It has decreased significantly from the same period last year. Along with this, the net profit margin of -0.58% trails that of the industry average. Net operating cash flow has significantly decreased to -$802.00 million or 2056.09% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower. You can view the full analysis from the report here: IEP Ratings Report To see these stocks and other Icahn Capital holdings in action, check out Carl Icahn's portfolio on Stockpickr. Read More: 8 Stocks George Soros Is Buying

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