10 Best Stocks to Buy According to Billionaire Mario Gabelli

3. GATX Corporation (NYSE:GATX)

Number of Hedge Fund Holders: 14

GAMCO Investors’ Stake: $204.7 million

GATX Corporation (NYSE:GATX) operates as a railcar leasing company. In Rail North America, during FY 2024, the demand for existing railcars was steady, as expected. The company extended lease renewal terms at attractive rates and maintained increased fleet utilization and a strong renewal success rate, allowing it to embed a high level of quality and long-term committed cash flow into the business. Apart from the commercial results, GATX Corporation (NYSE:GATX) invested more than $1.1 billion in its North American rail business in 2024. It expanded the platform via opportunistic railcar purchases apart from investments made under the existing supply agreement.

Furthermore, GATX Corporation (NYSE:GATX) saw continued strong demand for GATX assets in the secondary market, enabling it to optimize the fleet via railcar sales and generate significant asset remarketing income. For FY 2025, in Rail International, the company expects increased segment profit due to more railcars on lease at higher lease rates for most car types. In Engine Leasing, GATX Corporation (NYSE:GATX) expects RRPF and its wholly owned portfolio to produce robust results, fuelling growth in segment profit, with projected increases in air travel demand to continue to drive aircraft engine demand.