This article discusses the top 5 stock picks of Mario Gabelli’s GAMCO Investors at the end of June 2022. If you want to learn about Mr. Gabelli’s journey of founding GAMCO Investors, building it over time, and the firm’s other top stock picks, please go to 10 Best Stocks to Buy According to Billionaire Mario Gabelli.
5. Crane Holdings Co. (NYSE:CR)
GAMCO Investors’ Stake Value: $129,581,000
Percentage of GAMCO Investors’ 13F Portfolio: 1.42%
Number of Hedge Fund Holders: 22
Crane Holdings Co. (NYSE:CR) is a Stamford, Connecticut-based engineered industrial products manufacturer that traces its history all the way back to the mid-19th century. At the end of June, 22 funds tracked by Insider Monkey disclosed a stake in Crane Holdings Co. (NYSE:CR), down from 26 that reported a stake at the end of March.
On August 15, Crane Holdings Co. (NYSE:CR) announced that it had divested its stake in subsidiary Redco Corporation, which holds the former’s asbestos liabilities and related insurance assets, to Spruce Lake Liability Management, a long-term liability management company. Under the terms of the deal, Crane Holdings Co. (NYSE:CR) contributed $550 million in cash to Redco Corporation, and Spruce Lake Liability Management made an $83 million contribution to the same. This deal removes all asbestos-related liabilities, deferred tax assets, and other obligations from Crane Holdings Co.’s (NYSE:CR) balance sheet. However, the company will report an estimated $173 million loss associated with this transaction in its fiscal 2022 third-quarter results.
4. Sony Group Corporation (NYSE:SONY)
GAMCO Investors’ Stake Value: $146,539,000
Percentage of GAMCO Investors’ 13F Portfolio: 1.6%
Number of Hedge Fund Holders: 26
The slow but continuous decline in videogame sales seems to be affecting Sony Group Corporation’s (NYSE:SONY) stock this year as it trades down by close to 19% year-to-date. According to Q2 2022 Games Market Dynamics US report published by the NPD Group, overall spending on video games in the US declined by 13% year-over-year to $12.35 billion in the second quarter of 2022.
On July 8, analysts at Macquarie upgraded Sony Group Corporation’s (NYSE:SONY) stock to ‘Outperform’ from ‘Neutral’.
3. GATX Corporation (NYSE:GATX)
GAMCO Investors’ Stake Value: $150,967,000
Percentage of GAMCO Investors’ 13F Portfolio: 1.65%
Number of Hedge Fund Holders: 17
Both GATX Corporation’s (NYSE:GATX) stock and its popularity among smart money investors seem to be on the rise in the past few quarters. Out of the 895 hedge funds tracked by Insider Monkey, only 12 disclosed a stake in the railcar leasing company at the end of September last year, but that number jumped to 17 at the end of June 2022. Similarly, GATX Corporation’s (NYSE:GATX) stock has also appreciated by over 14% in the last one year, unaffected by the downtrend in the broader market.
GATX Corporation (NYSE:GATX) is a favorite stock to hold among investors seeking dividends. The company has consistently paid a dividend every year for the last 32 years and currently pays an annual dividend of $2.08, which, based on the stock’s last closing price, translates to a dividend yield of more than 2%. Furthermore, in the last 11 years, GATX Corporation (NYSE:GATX) has increased its dividend every year. These distinctions helped the company to make it to Insider Monkey’s recently published lists of 5 Best Railroad Stocks that Pay Dividends and 10 Best Railroad Stocks to Invest In.
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.
1. Herc Holdings Inc. (NYSE:HRI)
GAMCO Investors’ Stake Value: $172,428,000
Percentage of GAMCO Investors’ 13F Portfolio: 1.89%
Number of Hedge Fund Holders: 24
Herc Holdings Inc. (NYSE:HRI) has been GAMCO Investors’ largest holding since the first quarter of 2021 and remained one at the end of June even though the fund sold 16,963 shares of the equipment rental supplier in Q2. Based in Bonita Springs, Florida, Herc Holdings Inc. (NYSE:HRI) rents out trucks, trailers, earthmoving, compaction, material handling, air compressors, lighting and aerial equipment. Apart from it, the company also operates ProSolutions, which is an industry-specific solution-based service, and ProContractor, which provides professional-grade tools and equipment.
You can also look at Levin Easterly Partners’ Latest Portfolio: Top 10 Stock Picks and Top 10 Technology Stocks to Buy According to Billionaire Cliff Asness
