Legendary Investor Carl Icahn Is Betting Big on Monro Stock. Should You Buy MNRO Here?

Core Insights - Monro (MNRO) shares surged over 15% on November 5 following activist investor Carl Icahn's additional investment of $9.7 million, making him the largest shareholder with approximately 4.4 million shares [1][3] - Despite the recent rally, Monro's stock is still down over 25% year-to-date, indicating ongoing challenges [2] - Icahn's involvement is seen as a bullish signal for MNRO, suggesting potential strategic changes and value creation opportunities [3][4] Financial Performance - Monro reported better-than-expected earnings in its latest quarter, which may attract more investors to follow Icahn's lead [4] - The stock is currently trading at a price-sales (P/S) multiple of only 0.38x, indicating a compelling valuation [5] Market Sentiment - Options traders anticipate a continued increase in Monro's share price, targeting around $20.50 by January 16 [6] - Historically, Monro has delivered an average return of 5.54% in November and 1.60% in December, suggesting seasonal strength [6] Analyst Recommendations - Wall Street analysts have a consensus rating of "Hold" on MNRO shares, with price targets reaching as high as $19, indicating a potential upside of 7% from current levels [8]