In this article, we discuss the 5 best stocks to buy according to billionaire Mario Gabelli. If you want to read our detailed analysis of these stocks, go directly to the 10 Best Stocks to Buy According to Billionaire Mario Gabelli.
5. Crane Co. (NYSE: CR)
Number of Hedge Fund Holders: 25
Crane Co. (NYSE: CR) is ranked fifth on our list of 10 best stocks to buy according to billionaire Mario Gabelli. The firm markets engineered industrial products and is headquartered in Connecticut. GAMCO Investors, according to the latest filings, owned more than 1.5 million shares in the firm at the end of the second quarter of 2021, representing 1.18% of the portfolio. These shares are worth $140 million and GAMCO has trimmed stake in the company by 1% when compared to the filings for the first three months of 2021.
On July 27, investment advisory DA Davidson maintained a Buy rating on Crane Co. (NYSE: CR) stock and raised the price target to $115 from $110, noting that the earnings beat of the firm in the second quarter was driven by strong organic sales growth.
At the end of the second quarter of 2021, 25 hedge funds in the database of Insider Monkey held stakes worth $303 million in Crane Co. (NYSE: CR), up from 17 in the previous quarter worth $277 million.
4. GATX Corporation (NYSE: GATX)
Number of Hedge Fund Holders: 17
GATX Corporation (NYSE: GATX) is a Chicago-based equipment finance company. It is placed fourth on our list of 10 best stocks to buy according to billionaire Mario Gabelli. Regulatory filings reveal that GAMCO Investors owned more than 1.7 million shares in the company at the end of June 2021. These represent 1.29% of the portfolio and are worth over $153 million. Gabelli has trimmed GAMCO’s stake in the firm by 2% when compared to the first quarter.
On July 16, investment advisory Cowen upgraded GATX Corporation (NYSE: GATX) stock to Outperform from Market Perform with a price target of $101. Matt Elkott, an analyst at the firm, issued the ratings update.
At the end of the fourth quarter of 2020, 17 hedge funds in the database of Insider Monkey held stakes worth $216 million in GATX Corporation (NYSE: GATX), up from 16 in the previous quarter worth $203 million.
3. CNH Industrial N.V. (NYSE: CNHI)
Number of Hedge Fund Holders: 24
CNH Industrial N.V. (NYSE: CNHI) is a United Kingdom-based firm that makes and sells agricultural and construction equipment. It is ranked third on our list of 10 best stocks to buy according to billionaire Mario Gabelli. Latest data shows that GAMCO Investors owned close to 10 million shares in the company at the end of June 2021 that are worth around $166 million. This represents 1.41% of the entire portfolio. Gabelli has increased stake in the company by 1% when compared to the first quarter.
On May 12, investment advisory Evercore kept an Outperform rating on CNH Industrial N.V. (NYSE: CNHI) stock and raised the price target to $25 from $18, underlining that the machinery sector was highly positively correlated.
Out of the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Harris Associates is a leading shareholder in CNH Industrial N.V. (NYSE: CNHI) with 134 million shares worth more than $2.2 billion.
In its Q1 2021 investor letter, Longleaf Partners Fund, an asset management firm, highlighted a few stocks and CNH Industrial N.V. (NYSE: CNHI) was one of them. Here is what the fund said:
“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.”
2. American Express Company (NYSE: AXP)
Number of Hedge Fund Holders: 52
American Express Company (NYSE: AXP) is placed second on our list of 10 best stocks to buy according to billionaire Mario Gabelli. The company operates from New York and markets payments services. Gabelli, through GAMCO Investors, owned over 1 million shares in the firm at the end of the second quarter of 2021. These are worth $168 million and represent 1.42% of the portfolio. GAMCO has trimmed stake in the company by 3% compared to the first three months of the year.
On July 26, investment advisory Deutsche Bank maintained a Buy rating on American Express Company (NYSE: AXP) stock and raised the price target to $190 from $185, noting that the firm had posted a momentum building quarter.
Out of the hedge funds being tracked by Insider Monkey, Washington-based firm Fisher Asset Management is a leading shareholder in American Express Company (NYSE: AXP) with 15.3 million shares worth more than $2.5 billion.
In its Q2 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and American Express Company (NYSE: AXP) was one of them. Here is what the fund said:
“In financials, American Express has done an excellent job demonstrating the resiliency of its franchise in the midst of a global pandemic that drove a 60% decline in its core travel and entertainment business. The company’s spend-centric model has been helped by fiscal stimulus ensuring a flush consumer, while management continues to execute well by adding millions of new consumer and small and medium business accounts, which should benefit the franchise over the medium to long term. We remain optimistic regarding the company’s prospects as travel and entertainment activity rebounds, adding to our position in the quarter.”
1. Herc Holdings Inc. (NYSE: HRI)
Number of Hedge Fund Holders: 20
Herc Holdings Inc. (NYSE: HRI) is ranked first on our list of 10 best stocks to buy according to billionaire Mario Gabelli. The firm operates as an equipment rental supplier. It is headquartered in Florida. According to the latest filings, GAMCO Investors owned more than 2.5 million shares in the firm at the end of June 2021 that are worth over $291 million, representing 2.46% of the portfolio. Gabelli has trimmed GAMCO’s stake in the company by 8% compared to the first quarter of the year.
On July 23, investment advisory Barclays reiterated an Overweight rating on Herc Holdings Inc. (NYSE: HRI) stock and raised the price target to $135 from $128. Adam Seiden, an analyst at the firm, issued the ratings update.
Out of the hedge funds being tracked by Insider Monkey, Florida-based investment firm Icahn Capital LP is a leading shareholder in Herc Holdings Inc. (NYSE: HRI) with 4.4 million shares worth more than $503 million.
You can also take a peek at 10 Best Healthcare Dividend Stocks to Buy Now and 10 Dividend Stocks with Over 20 Years of Dividend Increases.
