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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.

Industry: Conglomerates
Ticker
Company
Price
Valuation Score
Graham Fair Value
Graham Fair Value %
P/E
Forward P/E
P/S
P/B
PEG
Free Cash Flow
Free Cash Flow Yield
Book Value
BVPS
EV
EV/EBITDA
TRC
TEJON RANCH CO
$19.99$9.79104.22%31.73xN/A7.09x1.15x1.12x$12.64M2.39%$460.17M17.37$549.79M17.99
SPLP
STEEL PARTNERS HOLDINGS LP
$43.00$669.51-93.58%5.97xN/A0.58x1.25x0.02x-$101.49M-10.20%$746.50M32.25$843.17M2.48
CODI
COMPASS DIVERSIFIED HOLDINGS
$19.17$25.26-24.10%319.50x20.61x0.66x1.18x0.27x-$104.58M-7.58%$1.17B16.29$3.12B19.50
BBU
BROOKFIELD BUSINESS PARTNERS LP
$18.78$164.02-88.55%42.67x3.09x0.03x0.31x0.04x-$178.00M-12.30%$4.65B60.36$43.05B8.60
MDU
MDU RESOURCES GROUP INC
$31.45$14.42118.11%18.83x17.00x0.98x1.83x2.16x-$275.51M-4.31%$3.49B17.17$9.53B11.21
IEP
ICAHN ENTERPRISES LP
$50.83N/AN/A-32.79x49.35x1.24x4.29xN/A$3.20B19.42%$4.00B12.36$22.45B30.97
SEB
SEABOARD CORP
$4,046.45$3.13k29.38%9.85xN/A0.43x0.99x1.69x-$99.00M-2.11%$4.75B4,093.80$6.25B8.93
IGC
INDIA GLOBALIZATION CAPITAL INC
$0.40N/AN/A-1.47xN/A30.46x1.04xN/A-$7.00M-33.84%$20.14M0.39$14.36M-1.07
NNBR
NN INC
$1.87N/AN/A-3.53x93.50x0.17x0.42xN/A-$9.75M-11.66%$194.77M4.36$283.12M6.13
MATW
MATTHEWS INTERNATIONAL CORP
$31.97N/AN/A-10.05xN/A0.55x1.99xN/A$70.49M7.28%$487.35M16.09$1.77B64.10
CETX
CEMTREX INC
$0.18N/AN/A-0.19xN/A0.09x0.27xN/A-$15.03M-327.53%$17.17M0.67-$2.99M0.24

Conglomerate Stocks FAQ

What are the best conglomerate stocks to buy right now in Dec 2022?

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

1. Tejon Ranch Co (NYSE:TRC)


Tejon Ranch Co (NYSE:TRC) is the top conglomerate stock with a Zen Score of 43, which is 13 points higher than the conglomerate industry average of 30. It passed 14 out of 33 due diligence checks and has strong fundamentals. Tejon Ranch Co has seen its stock return 11.36% over the past year, overperforming other conglomerate stocks by 7 percentage points.

2. Steel Partners Holdings (NYSE:SPLP)


Steel Partners Holdings (NYSE:SPLP) is the second best conglomerate stock with a Zen Score of 37, which is 7 points higher than the conglomerate industry average of 30. It passed 15 out of 38 due diligence checks and has average fundamentals. Steel Partners Holdings has seen its stock return 15.34% over the past year, overperforming other conglomerate stocks by 11 percentage points.

3. Compass Diversified Holdings (NYSE:CODI)


Compass Diversified Holdings (NYSE:CODI) is the third best conglomerate stock with a Zen Score of 37, which is 7 points higher than the conglomerate industry average of 30. It passed 14 out of 38 due diligence checks and has average fundamentals. Compass Diversified Holdings has seen its stock lose -33.53% over the past year, underperforming other conglomerate stocks by -37 percentage points.

Compass Diversified Holdings has an average 1 year price target of $33.00, an upside of 72.14% from Compass Diversified Holdings's current stock price of $19.17.

Compass Diversified Holdings stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 1 analyst covering Compass Diversified Holdings, 100% have issued a Strong Buy rating, 0% have issued a Buy, 0% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

What are the conglomerate stocks with highest dividends?

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

1. Icahn Enterprises (NASDAQ:IEP)


Icahn Enterprises (NASDAQ:IEP) has an annual dividend yield of 15.74%, which is 11 percentage points higher than the conglomerate industry average of 4.69%. 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 -516.1% indicates that its high dividend yield might not be sustainable for the long-term.

2. Compass Diversified Holdings (NYSE:CODI)


Compass Diversified Holdings (NYSE:CODI) has an annual dividend yield of 5.22%, which is 1 percentage points higher than the conglomerate industry average of 4.69%. 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 1,666.7% indicates that its high dividend yield might not be sustainable for the long-term.

3. Matthews International (NASDAQ:MATW)


Matthews International (NASDAQ:MATW) has an annual dividend yield of 2.78%, which is -2 percentage points lower than the conglomerate industry average of 4.69%. 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 -27.7% indicates that its dividend yield might not be sustainable for the long-term.

Why are conglomerate stocks up?

Conglomerate stocks were up 2.24% in the last day, and up 1.09% over the last week.

We couldn't find a catalyst for why conglomerate stocks are up.

What are the most undervalued conglomerate stocks?

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

1. Steel Partners Holdings (NYSE:SPLP)


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 57, which is 28 points higher than the conglomerate industry average of 29. It passed 4 out of 7 valuation due diligence checks.

Steel Partners Holdings's stock has gained 15.34% in the past year. It has overperformed other stocks in the conglomerate industry by 11 percentage points.

2. Cemtrex (NASDAQ:CETX)


Cemtrex (NASDAQ:CETX) is the second most undervalued conglomerate stock based on WallStreetZen's Valuation Score. Cemtrex has a valuation score of 43, which is 14 points higher than the conglomerate industry average of 29. It passed 3 out of 7 valuation due diligence checks.

Cemtrex's stock has dropped -81.65% in the past year. It has underperformed other stocks in the conglomerate industry by -86 percentage points.

3. Compass Diversified Holdings (NYSE:CODI)


Compass Diversified Holdings (NYSE:CODI) is the third most undervalued conglomerate stock based on WallStreetZen's Valuation Score. Compass Diversified Holdings has a valuation score of 43, which is 14 points higher than the conglomerate industry average of 29. It passed 3 out of 7 valuation due diligence checks.

Compass Diversified Holdings's stock has dropped -33.53% in the past year. It has underperformed other stocks in the conglomerate industry by -37 percentage points.

Are conglomerate stocks a good buy now?

57.14% of conglomerate stocks rated by analysts are a strong buy right now. On average, analysts expect conglomerate stocks to rise by 40.12% over the next year.

What is the average p/e ratio of the conglomerates industry?

The average P/E ratio of the conglomerates industry is 3.5x.
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