5 Best Stocks to Buy According to Billionaire Mario Gabelli

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

GAMCO Investors’ Stake Value: $162,141,000

Percentage of GAMCO Investors’ 13F Portfolio: 1.77%

Number of Hedge Fund Holders: 19

Mueller Industries, Inc. (NYSE:MLI) jumped two spots and became GAMCO Investors’ second most loved stock at the end of June despite the firm unloading 40,731 shares of the company during the second quarter. While GAMCO Investors was reducing its stake in Mueller Industries, Inc. (NYSE:MLI), renowned investor Joel Greenblatt’s Gotham Asset Management more than doubled its holding in the metals and plastic products manufacturer by 108% to 60,304 shares during that time.

Mueller Industries, Inc.’s (NYSE:MLI) stock has appreciated 234% over the last 10 years, but most of those gains have come in the previous two years. Despite the near 50% gain registered during the last year, the stock still trades at an extremely low forward price to earnings multiple of around 6. On July 18, analysts at Northcoast Research initiated coverage on Mueller Industries, Inc.’s (NYSE:MLI) stock with a ‘Buy’ rating.