In this article, we will discuss the 10 Best Stocks to Buy According to Billionaire Mario Gabelli.
GAMCO Investors, formerly known as Gabelli Asset Management Company, is an investment firm with its headquarters in Rye, New York. The company has expertise in providing investment advice and brokerage services to mutual funds, institutional clients, and select investors. It was founded and is majority-owned by Mario Gabelli. Mr. Gabelli is the Chairman and Chief Executive Officer of GAMCO Investors, Inc.
GAMCO Investors’ Investment Philosophy
With respect to value, the company’s investment approach revolves around utilizing fundamental, bottom-up research to spot securities selling below their intrinsic value. Furthermore, the investment firm seeks to identify mispriced companies possessing healthy businesses and the presence of a catalyst that will surface value. The firm’s investment teams use a broad universe in the benchmark-agnostic approach to cover all sectors of the market and check evolving themes and value-based opportunities.
Investment Themes For 2025
The firm’s portfolio managers have shared themes that they believe will shape markets in 2025. As per Co-CIOs Chris Marangi and Kevin Dreyer, a resurgence of M&A activity will take place. Industry consolidation is one of the favorite catalysts because it could immediately surface PMV (Private Market Value) either as a target or as a company similarly situated to a target. Notably, increased rates and activist federal agencies depressed M&A activity over the previous 2 years. The new regime in Washington is almost certain to fuel deal activity.
The AI investment returns were largely accrued to companies that are involved in the buildout of computing infrastructure. As a result, investment returns for companies who are creating end user-facing products and services using AI technology have lagged, says John Belton, Co-Portfolio Manager of the Gabelli Growth Innovators ETF (GGRW). This dynamic is expected to reverse over the coming years with GenAI migrating from research labs to user applications and entering a new phase of commercialization. Next, the rise in geopolitical instability continues to drive more NATO members to prioritize defense and military investments, leading to higher defense budgets throughout Europe and the U.S., says Tony Bancroft, Portfolio Manager of the Gabelli Commercial Aerospace and Defense ETF (GCAD).
Tim Winter, Co-Portfolio Manager of the Gabelli Utilities Fund (GABUX), believes that infrastructure improvements can make utilities attractive. Finally, Chris Mancini, who is the Co-Portfolio Manager of the Gabelli Gold Fund (GOLDX), believes that gold continues to offer a good opportunity for investors who are looking for a haven during uncertain times.
Amidst such trends, let us now have a look at the 10 Best Stocks to Buy According to Billionaire Mario Gabelli.
Mario Gabelli of GAMCO Investors
Our Methodology
To make the list of 10 Best Stocks to Buy According to Billionaire Mario Gabelli, we selected the top 10 stocks in GAMCO Investors’ portfolio as of its Q4 2024 13F filing. We settled on the hedge fund’s 10 biggest holdings. Finally, we ranked the stocks in ascending order based on the value of GAMCO Investors, Inc.’s equity stakes. Additionally, we have mentioned the hedge fund sentiment around each stock, as of Q4 2024.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10 Best Stocks to Buy According to Billionaire Mario Gabelli
10. The Bank of New York Mellon Corporation (NYSE:BK)
Number of Hedge Fund Holders: 59
GAMCO Investors’ Stake: $116.6 million
The Bank of New York Mellon Corporation (NYSE:BK) offers a range of financial products and services in the US and internationally. Fitch Ratings believes that the company has a leading franchise in the global trust and custody segment, a competitive position in asset and wealth management businesses, and a dominant position in securities clearing. As per the firm, the breadth and scale of product offerings in businesses possessing high barriers to entry lead to strong and sticky client relationships. The Bank of New York Mellon Corporation (NYSE:BK)’s fee-centric business model remains inherently balance sheet-light and results in a strong performance in operating profit/RWA.
Elsewhere, Truist analyst David Smith upped the company’s price objective to $93 from $91, keeping a “Buy” rating. The firm has updated its model post its very strong Q4 results and initial FY25 guidance. Furthermore, the firm believes that The Bank of New York Mellon Corporation (NYSE:BK)’s higher asset yields more than offset the somewhat smaller earning asset base on slower deposit growth. During Q4 2024, the company reported a total revenue of $4.8 billion, reflecting an increase of 11%. For FY 2025, The Bank of New York Mellon Corporation (NYSE:BK) expects net interest income growth of mid-single-digits (%) on a YoY basis.
Parnassus Investments, an investment management company, released a Q3 2024 investor letter. Here is what the fund said:
“The Bank of New York Mellon Corporation (NYSE:BK) posted better-than-expected second-quarter profit and revenue, driven in part by higher fees. Further, the Federal Reserve’s interest rate cut is expected to reduce funding costs and improve BNY’s margins.”
9. AMETEK, Inc. (NYSE:AME)
Number of Hedge Fund Holders: 51
GAMCO Investors’ Stake: $117.7 million
AMETEK, Inc. (NYSE:AME) is engaged in manufacturing and selling electronic instruments (EIG) and electromechanical (EMG) devices in the US and internationally. The company delivered healthy results in Q4, with outstanding operating performance fueling strong core margin expansion, record earnings as well as healthy cash flow growth. AMETEK, Inc. (NYSE:AME)’s operational flexibility and disciplined execution enabled it to navigate a continued uncertain macroeconomic environment. The company remains well-placed as it enters 2025, considering the leading positions throughout a diverse set of attractive markets as well as significant balance sheet capacity to deploy on strategic acquisitions.
Notably, The AMETEK Growth Model integrates the 4 growth strategies i.e., operational excellence, technology innovation, global and market expansion, and strategic acquisitions, with a disciplined emphasis on cash generation and capital deployment. Furthermore, during the Q4 2024 earnings call, AMETEK, Inc. (NYSE:AME)’s management expressed optimism regarding the new product pipeline, which it expects to pay off. For 2025, the company anticipates overall sales to be up low single digits on a percentage basis as compared to 2024. It expects adjusted earnings per diluted share to be between $7.02 – $7.18, reflecting an increase of 3% – 5% over the comparable basis for 2024. The company remains confident about its growth model and market position.
ClearBridge Investments, an investment management company, released its Q3 2024 investor letter. Here is what the fund said:
“AMETEK, Inc. (NYSE:AME), in the industrials sector, makes electronic instruments and electromechanical devices. The company’s position as a supplier of high-quality instruments to “cannot fail” industries, such as aerospace applications, health care equipment and marine instrumentation, has made it the dominant player in several of these high-value, but niche areas. Additionally, the company has a strong track record of successfully integrating and raising the margin profile of acquired businesses. Subjected to the same destocking malaise weighing on the broader industrials sector, we were able to capitalize on the company trading at cycle lows to establish a position in this best-in-class industrials business.”
8. Madison Square Garden Sports Corp. (NYSE:MSGS)
Number of Hedge Fund Holders: 42
GAMCO Investors’ Stake: $132.8 million
Madison Square Garden Sports Corp. (NYSE:MSGS) operates as a professional sports company in the US. During Q2 2025, the company capitalized on high fan engagement and successful marketing partnerships. It generated revenues of $357.8 million, reflecting an increase of $30.9 million, or 9% as compared to the prior year period. Fan enthusiasm and strong corporate demand supported fueling growth in per-game revenues throughout all key areas of Madison Square Garden Sports Corp. (NYSE:MSGS)’s business.
Notably, the revenues in Q2 2025 were mainly aided by increased ticket-related revenues, suite revenues, sponsorship and signage revenues, revenues from league distributions, food, beverage, and merchandise sales, and local media rights fees. The Knicks and Rangers played a combined 3 more regular season games at The Garden during Q2 2025 as compared to the prior-year period. Madison Square Garden Sports Corp. (NYSE:MSGS)’s outlook is expected to be aided by iconic sports franchises and the strong top-line trends it continues to witness. Madison Square Garden Sports Corp. (NYSE:MSGS) also saw fan enthusiasm extending to in-arena spending, with food, beverage, and merchandise per cap spending increasing as compared to Q2 2024, thanks to the continued efforts to introduce innovative merchandise offerings.
7. Sony Group Corporation (NYSE:SONY)
Number of Hedge Fund Holders: 25
GAMCO Investors’ Stake: $133.8 million
Sony Group Corporation (NYSE:SONY) is engaged in designing, developing, producing, and selling electronic equipment, instruments, and devices for the consumer, professional, and industrial markets. Analyst Jim Hin Kwong Au of DBS maintained a “Buy” rating on the company’s stock. The analyst’s rating is backed by factors including Sony Group Corporation (NYSE:SONY)’s impressive revenue and earnings growth, which were mainly aided by non-first-party game software titles and network services.
Furthermore, the company’s management remains confident in the continued expansion of its game business, says the analyst. Sony Group Corporation (NYSE:SONY)’s competitive edge in CMOS technology and strong growth in game and software services can support the growth trajectory moving forward. Elsewhere, Oppenheimer analyst Martin Yang upped Sony Group Corporation (NYSE:SONY)’s price target to $33 from $25, keeping an “Outperform” rating. The firm’s bullish conviction in the company’s outlook stems from the sustained revenue growth, together with accelerating profit margin expansion at PlayStation.
Aristotle Capital Management, LLC, an investment management company, released its Q4 2024 investor letter. Here is what the fund said:
“Sony Group Corporation (NYSE:SONY), the global provider of videogames and consoles, image sensors, music, and movies, was a top contributor for the period. The company reported strong results driven by third-party gaming revenue and record PlayStation 5 console profitability. This was achieved despite lower console sales, which, in our view, exemplifies the strength of PlayStation’s network effects. PlayStation is the world’s largest gaming platform with 116 million monthly active users, making it an attractive market for game developers and allowing users to play the most advanced games at lower costs than PCs. In its Pictures segment, Crunchyroll (the anime business Sony acquired from AT&T in 2020) signed a distribution agreement with YouTube Primetime Channels, the market share leader in streaming services, which we believe will increase Crunchyroll’s subscriber base. Though a singular example, it illustrates management’s ability to better execute and further improve the segment’s profitability, a catalyst we previously identified. In addition, Sony reported improved sales of image sensors for mobile products as the global smartphone market continued its gradual recovery. Sony’s image sensor business has the largest global market share, and we believe, longer term, it is uniquely positioned to benefit from increasing demand for both autonomous driving technology in vehicles and improved image quality in smartphone cameras. As such, we continue to admire Sony’s capacity to build on its industry leadership and optimize its operations, which includes its plan for a partial spinoff of its Financial Services segment in October 2025.”
6. Modine Manufacturing Company (NYSE:MOD)
Number of Hedge Fund Holders: 43
GAMCO Investors’ Stake: $139.6 million
Modine Manufacturing Company (NYSE:MOD) offers thermal management solutions to diversified markets and customers. The company designs, manufactures, and markets products for cooling, heating, and ventilation throughout various industries. DA Davidson analysts maintained a positive outlook on the company’s shares, reiterating a “Buy” rating with a steady target price of $155.00. The firm’s analysts noted Modine Manufacturing Company (NYSE:MOD)’s potential to achieve strong market growth in its Data Center business, strengthened by technological advancements and new customer acquisitions.
Modine Manufacturing Company (NYSE:MOD)’s initiatives to gain market share with the help of technology-led initiatives as well as to continue attracting new clients have been regarded as critical drivers for the company’s Data Center business. Despite the challenges in the Performance Technologies segment, Modine Manufacturing Company (NYSE:MOD) has maintained a strong outlook for data center business, thanks to organic growth and strategic acquisitions.
Elsewhere, William Blair analyst Brian Drab maintained the bullish stance on the company, giving a “Buy” rating.
Fred Alger Management, an investment management company, released its Q4 2024 investor letter. Here is what the fund said:
“Modine Manufacturing Company (NYSE:MOD) provides a diverse range of systems and solutions that improve indoor air quality, cool data centers, conserve natural resources, reduce harmful emissions, and promote environmentally friendly refrigerants. Since the appointment of a new CEO in December 2020, the company has undergone a significant transformation, simplifying its business, aligning strategies by market verticals, and adopting the 80/20 business philosophy (i.e., prioritizing 20% of inputs that drive 80% of outcomes) to drive decision-making. Despite reporting strong fiscal second-quarter results, shares detracted from performance due to the absence of a forward guidance raise, which was attributed to the company’s strategic move away from lower-margin vehicle business. In our view, Modine remains in the midst of a significant transformation, with increasing recognition in the high-growth data center cooling market, where it is positioned as a strong competitor and potential market share gainer.”
5. American Express Company (NYSE:AXP)
Number of Hedge Fund Holders: 71
GAMCO Investors’ Stake: $152.6 million
American Express Company (NYSE:AXP) operates as an integrated payments company. Robert W. Baird analyst David George upped the company’s stock to a “Hold” rating, setting a price objective of $265.00. The rating is backed by factors highlighting a balanced risk/reward profile for the company. Despite the market sell-off, the high-quality franchise of American Express Company (NYSE:AXP) is projected to deliver lower revenue growth expectations across operating environments. The company has showcased strong execution on revenue and EPS targets, delivering notable growth in 2024. In FY 2024, the company delivered record revenues of $65.9 billion, implying a 10% increase on an FX-adjusted basis, while EPS came in at $14.01, up 25% YoY.
Furthermore, the analyst opines that the recent underperformance has improved the risk/reward trade-off. American Express Company (NYSE:AXP)’s credit quality remains strong. Elsewhere, Fitch Ratings mentioned about the company’s robust franchise, spend-centric business model, higher-than-average credit performance and profitability, relatively diverse funding, and strong liquidity and risk-adjusted capitalization. Notably, American Express Company (NYSE:AXP) exited 2024 with increased momentum, with billings growth accelerating to 8% in the fourth quarter, fueled by healthy spending from its consumer and commercial customers during the holiday season.
Bretton Capital Management, an investment management company, published a Q4 2024 investor letter. Here is what the fund said:
“American Express Company (NYSE:AXP) was our best performing stock last year, returning 60%, which was on top of 2023’s 29%. Its premium credit cards are more popular than ever, and its moderately affluent customer base continues to spend. American Express did especially well signing up younger cardholders, a great sign that its growth can be sustained for years to come. The combination of healthy revenue growth and tight expense control led to an earnings-per-share growth of 25%.”
4. Crane Company (NYSE:CR)
Number of Hedge Fund Holders: 38
GAMCO Investors’ Stake: $180.5 million
Crane Company (NYSE:CR) is engaged in manufacturing and selling engineered industrial products. Stifel analysts maintained a “Hold” rating on the company’s stock, with a steady price objective of $170.00. The analysts opine that the company’s ability to differentiate operations has been the critical factor in its success. They expressed optimism regarding Crane Company (NYSE:CR)’s potential to achieve the organic growth targets. They highlighted that the Aerospace & Electronics (A&E) segment is expected to see strong growth. Crane Company (NYSE:CR) remains focused on strengthening its market position and expanding its reach in the broader industrial sector. Its emphasis on organic growth and operational excellence remains a central theme in the strategy.
Notably, Crane Company (NYSE:CR) highlighted that it has increased its leadership in the authentication market, with OpSec integration moving as expected and the acquisition of De La Rue Authentication Solutions on track to close in Q2 2025. Given its ample capacity, a robust pipeline of M&A opportunities, and a disciplined approach to capital allocation, Crane Company (NYSE:CR) can achieve future growth. With the acquisition of OpSec, the company can expand its capabilities throughout the entire authentication value chain, developing a leading brand and product authentication platform.
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.
2. Herc Holdings Inc. (NYSE:HRI)
Number of Hedge Fund Holders: 32
GAMCO Investors’ Stake: $212.2 million
Herc Holdings Inc. (NYSE:HRI) operates as an equipment rental supplier in the US and internationally. The company has completed 9 acquisitions with a total of 28 locations and managed to open 23 new greenfield locations for 12 months ended December 31, 2024, contributing to its strong market presence. Herc Holdings Inc. (NYSE:HRI)’s diversified operations and healthy national account capabilities have placed it well within the industry. Furthermore, it remains focused on gaining share through capturing an outsized position of the expected increased construction spending in 2025 by fleet investments, optimization of existing fleet, capitalizing of strategic acquisitions and greenfield opportunities, and cross-selling a diversified product portfolio.
Herc Holdings Inc. (NYSE:HRI) and H&E Equipment Services, Inc. (doing business as H&E Rentals) have entered into a definitive merger agreement under which the former will acquire H&E. This transaction strengthens Herc Holdings Inc. (NYSE:HRI)’s position as the 3rd largest rental company in North America. Also, ~$300 million of annual EBITDA synergies are projected to be achieved by the end of year three after the close of the transaction. The transaction is anticipated to be high single-digit accretive to Herc Holdings Inc. (NYSE:HRI)’s cash EPS in 2026 and ramping to over 20% as synergies are fully realized.
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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