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Best Conglomerate Stocks to Buy Now (2022)

Top conglomerate stocks in 2022 ranked by overall Zen Score. See the best conglomerate stocks to buy now, according to analyst forecasts for the conglomerates industry.

According to Zen Score, the 3 best conglomerate stocks to buy right now are:

Tejon Ranch Co (NYSE:TRC) is the top conglomerate stock with a Zen Score of 47, which is 15 points higher than the conglomerate industry average of 32. It passed 15 out of 33 due diligence checks and has strong fundamentals. Tejon Ranch Co has seen its stock lose -12.92% over the past year, overperforming other conglomerate stocks by 3 percentage points.

Brookfield Business Partners (NYSE:BBU) is the second best conglomerate stock with a Zen Score of 42, which is 10 points higher than the conglomerate industry average of 32. It passed 16 out of 38 due diligence checks and has strong fundamentals. Brookfield Business Partners has seen its stock lose -56.5% over the past year, underperforming other conglomerate stocks by -41 percentage points.

Brookfield Business Partners has an average 1 year price target of $36.00, an upside of 80.81% from Brookfield Business Partners's current stock price of $19.91.

Brookfield Business Partners stock has a consensus Buy recommendation according to Wall Street analysts. Of the 2 analysts covering Brookfield Business Partners, 0% have issued a Strong Buy rating, 100% have issued a Buy, 0% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Steel Partners Holdings (NYSE:SPLP) is the third best conglomerate stock with a Zen Score of 40, which is 8 points higher than the conglomerate industry average of 32. It passed 16 out of 38 due diligence checks and has average fundamentals. Steel Partners Holdings has seen its stock return 36.09% over the past year, overperforming other conglomerate stocks by 52 percentage points.

Out of 6 conglomerate stocks that have issued dividends in the past year, the 3 conglomerate stocks with the highest dividend yields are:

Icahn Enterprises (NASDAQ:IEP) has an annual dividend yield of 15.96%, which is 11 percentage points higher than the conglomerate industry average of 5.04%. Icahn Enterprises's dividend payout is stable, having never dropped by more than 10% in the last 10 years. Icahn Enterprises's dividend has shown consistent growth over the last 10 years.

Icahn Enterprises's dividend payout ratio of -462.4% indicates that its high dividend yield might not be sustainable for the long-term.

Compass Diversified Holdings (NYSE:CODI) has an annual dividend yield of 5.87%, which is 1 percentage points higher than the conglomerate industry average of 5.04%. Compass Diversified Holdings's dividend payout is not stable, having dropped more than 10% two times in the last 10 years. Compass Diversified Holdings's dividend has not shown consistent growth over the last 10 years.

Compass Diversified Holdings's dividend payout ratio of 160.5% indicates that its high dividend yield might not be sustainable for the long-term.

Matthews International (NASDAQ:MATW) has an annual dividend yield of 3.8%, which is -1 percentage points lower than the conglomerate industry average of 5.04%. Matthews International's dividend payout is stable, having never dropped by more than 10% in the last 10 years. Matthews International's dividend has shown consistent growth over the last 10 years.

Matthews International's dividend payout ratio of -123.2% indicates that its dividend yield might not be sustainable for the long-term.

Conglomerate stocks were down -3.06% in the last day, and down -6.98% over the last week. Cemtrex was the among the top losers in the conglomerates industry, dropping -7.73% yesterday.

Shares of companies in the broader tech sector are trading lower amid a rise in treasury yields as traders continue to assess Wednesday's Fed commentary and 75 bps rate hike. Rising rates decrease the present value of future cash flows, which negatively impacts growth stock valuations.

Based on WallStreetZen's Valuation Score, the 3 most undervalued conglomerate stocks right now are:

Steel Partners Holdings (NYSE:SPLP) is the most undervalued conglomerate stock based on WallStreetZen's Valuation Score. Steel Partners Holdings has a valuation score of 71, which is 29 points higher than the conglomerate industry average of 42. It passed 5 out of 7 valuation due diligence checks.

Steel Partners Holdings's stock has gained 36.09% in the past year. It has overperformed other stocks in the conglomerate industry by 52 percentage points.

Brookfield Business Partners (NYSE:BBU) is the second most undervalued conglomerate stock based on WallStreetZen's Valuation Score. Brookfield Business Partners has a valuation score of 71, which is 29 points higher than the conglomerate industry average of 42. It passed 5 out of 7 valuation due diligence checks.

Brookfield Business Partners's stock has dropped -56.5% in the past year. It has underperformed other stocks in the conglomerate industry by -41 percentage points.

Seaboard (NYSEMKT:SEB) is the third most undervalued conglomerate stock based on WallStreetZen's Valuation Score. Seaboard has a valuation score of 57, which is 15 points higher than the conglomerate industry average of 42. It passed 4 out of 7 valuation due diligence checks.

Seaboard's stock has dropped -15.8% in the past year. It has performed in line with other stocks in the conglomerate industry.