10 Best Stocks to Buy According to Billionaire Mario Gabelli

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1. Mueller Industries, Inc. (NYSE:MLI)

Number of Hedge Fund Holders: 34

GAMCO Investors’ Stake: $214.5 million

Mueller Industries, Inc. (NYSE:MLI) is engaged in manufacturing and selling copper, brass, and aluminum products. Despite the tough conditions, FY 2024 was a strong year for the company, as evidenced by its strong operational cash generation. Notably, it generated $140.1 million of cash from operations in Q4 2024 and $645.9 million for the year. By the year end, Mueller Industries, Inc. (NYSE:MLI) completed the integration of the Nehring Electrical Works and Elkhart Products acquisitions, which are expected to be important contributors in 2025.

The company remains focused on acquisitions that can expand its infrastructure products platforms and offer opportunities to increase its capabilities, mainly in nonferrous metals manufacturing. Mueller Industries, Inc. (NYSE:MLI) expects that, while the impact of the new administration’s trade and regulatory policies might take time, they would prove to be beneficial to its business. Mueller Industries, Inc. (NYSE:MLI)’s concentration in the US and status as a leading manufacturer place it well as the US happens to be one of the most secure end markets. The company’s acquisition of Nehring Electrical Works Company and certain of its affiliated companies offers a significant platform for long-term growth in the electrical and power infrastructure space, while also complementing the other critical infrastructure sectors.

While we acknowledge the potential of MLI as an investment, our conviction lies in the belief that some deeply undervalued AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for a deeply undervalued AI stock that is more promising than MLI but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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