Below is the list of the 5 best bargain stocks right now. If you want to read our detailed analysis of Mario Gabelli’s history, and hedge fund performance, go directly to the 10 Best Bargain Stocks Right Now.
5. CNH Industrial N.V. (NYSE: CNHI)
Gamco Investors look bullish over the future fundamentals of CNH Industrial N.V. (NYSE: CNHI). At the end of the first quarter, the firm held 9.90 million shares of CNH, weighted around 1.33% of the overall portfolio. CNH stock price saw a whopping rally of 141% last year amid stronger than expected demand for industrial products. In the March quarter, its industrial products revenue grew 40% year over year to $7 billion, with expectation for the continuation of strong demand across regions and segments. The company anticipates 14%-18% revenue growth for 2021 compared to the last year.
In the first quarter investor letter, Longleaf Partners Fund, a Memphis-based fund under Southeastern Asset Management, mentioned a few stocks including CNH Industrial. Here is what Longleaf Partners Fund stated:
“CNH Industrial (CNH) (23%, 1.19%), one of the world’s largest agriculture machinery manufacturers, was another top contributor. CNH reported strong fourth-quarter results, beating the consensus on every metric. The Agricultural Equipment (Ag) business, which represents the majority of our value, posted strong top-line growth of 19% YoY thanks to rising commodity prices, growing trade with China and the replacement of aging machinery fleets. Visibility for the first half of 2021 is strong, given solid Ag order growth across most key end markets, and we expect to see operational turnarounds in CNH’s other businesses. The company is also guiding 8-12% industrial sales growth for 2021, which is better than our initial expectation. The most positive surprise for the quarter was the company’s strong cash generation. CNH generated approximately $2.4bn FCF in the fourth quarter alone, driven by working capital release leading to a strong net cash position for the industrial segment. Due to the recent stock price appreciation, the price-to-value gap has narrowed, but we continue to have a positive view given a more favorable market outlook, the company’s strong execution capability and management’s continued commitments to value accretive transactions, including the planned splitting of the business and potentially other strategic asset sales.”
4. GATX Corporation (NYSE: GATX)
Railcar leasing company GATX Corporation (NYSE: GATX) is among the best bargain stocks right now, according to Mario Gabelli. As of the end of the first quarter, his hedge fund held $163 million worth of GATX shares. GATX Corporation is also the long-running stock holding of Gamco Investors portfolio. Although GATX’s stock price underperformed this year compared to the broader market index, its shares are still up 48% in the last twelve months. Furthermore, the company offers a dividend yield of 2.28% and it sustained dividend growth in the last 16 straight years.
GATX Corporation has experienced an increase in support from the world’s most elite money managers lately. It was in 16 hedge funds’ portfolios at the end of March compared to 12 positions in the previous quarter.
3. Griffon Corporation (NYSE: GFF)
Shares of the building products provider Griffon Corporation (NYSE: GFF) surged 24% since the beginning of this year, thanks to economic reopening. Moreover, its dividend yield of 1.24% makes it a good stock to hold for the long term.
Griffon Corporation (NYSE: GFF) was in 13 hedge funds’ portfolios at the end of March compared to 18 positions in the previous quarter.
2. ViacomCBS Inc. (NASDAQ: VIACA)
The media and entertainment company ViacomCBS Inc. (NASDAQ: VIACA) is among the top stocks holding of Gamco Investors. Despite a 25% year-to-date rally, ViacomCBS appears like the best bargain stock right now amid its lower valuations. Moreover, the company offers a dividend yield of just over 2% and it raised dividends in the last two consecutive years. Its returns are fully backed by financial numbers.
Its first-quarter revenue of $7.41 billion grew 14% from the year-ago quarter. The company had added 6 million global streaming subscribers during the first quarter to reach 36 million total while the global Pluto TV MAUs surged by 6 million to nearly 50 million.
1. Herc Holdings Inc. (NYSE: HRI)
Mario Gabelli’s hedge fund’s largest stock position Herc Holdings Inc. (NYSE: HRI) outshined the broader market index this year by a wide margin. Its stock price grew 68% so far this year, thanks to robust demand for its products and services. Herc Holdings shares represented around 2.49% of Gamco Investors’ entire 13F stock portfolio, according to the first quarter 13F filings.
HRI investors should be aware of an increase in activity from the world’s largest hedge funds of late. Herc Holdings was in 17 hedge funds’ portfolios at the end of the first quarter of 2021 compared to 15 positions in the previous quarter. The all-time high for this statistic is 29.
You can also take a peek at 10 Stocks Michael Burry is Selling and 11 Best Materials Stocks for 2021.
